Asset classes are how investments are categorized between the different sectors and sizes of stocks,
different issuers of bonds, real estate, tangibles, and the various flavors of international investments.
Not exact matches
«One
of the reasons why we are seeing a growing interest in social
bonds is because people want diversity in their SRI (sustainable and responsible investing) portfolios — they want
different kinds
of issuers,» says Andrew Salvoni, head
of Morgan Stanley's green and sustainable
bond syndicate desk.
«One
of the reasons why we are seeing a growing interest in social
bonds is because people want diversity in their SRI portfolios — they want
different kinds
of issuers,» says Salvoni.
One feature
of bond markets that limits their liquidity is that individual
issuers may have a large number
of different securities outstanding.
You should also try to diversify among individual
bonds, perhaps by holding a number
of securities from
different issuers.
Similarly, spreading your investing dollars among
different types
of bond issuers and
bond maturities can provide diversification on the
bond side
of your investment mix.
If you are thinking about investing in high - yield
bonds, you will also want to diversify your
bond investments among several
different issuers to minimize the possible impact
of any single
issuer's default.
To comply with the IRS «wash sale» rule, which does not recognize a tax loss generated from the sale and repurchase within 30 days
of the same or substantially identical security, investors should choose a
bond from a
different issuer.
Although their rating systems are slightly
different, the coveted triple - A rating indicates the cream
of the crop that every
bond issuer strives to achieve.
You then purchase in the secondary market a replacement triple - A-rated 5.00 % municipal
bond (from a
different issuer), maturing in 15 years, at an approximate cost
of $ 47,500.
As credit conditions change, corporate
issuers experience
different price responses, some more extreme than others, allowing for rebalancing into the temporarily cheap
bonds of ultimately sound companies.
The investment objective
of the Scheme is to provide reasonable returns and high level
of liquidity by investing in debt instruments such as
bonds, debentures and Government securities; and money market instruments such as treasury bills, commercial papers, certificates
of deposit, including repos in permitted securities
of different maturities, so as to spread the risk across
different kinds
of issuers in the debt markets.
The treatment
of issuers with
different credit ratings has always been problematic for sponsors
of bond indices.
Investments in high - yield
bonds offer
different rewards and risks than investing in investment - grade securities, including higher volatility, greater credit risk, and the more speculative nature
of the
issuer.
There is a vast number
of municipal
bond issues out there, from thousands
of different issuers, and very few
of them will change hands on any given day.
Exhibit 4 shows the annual returns in
different time frames, where we can see in more detail how similarly the corporate
bond markets have behaved for issuers from the U.S. and Mexico — as measured by the S&P 500 Bond Index (MXN) and S&P / BMV Corporate Eurobonos Bond Index, respectively — with three - year returns of 16.00 % and 16.56 %, respectively, and five - year returns of 15.68 % and 15.62 %, respectiv
bond markets have behaved for
issuers from the U.S. and Mexico — as measured by the S&P 500
Bond Index (MXN) and S&P / BMV Corporate Eurobonos Bond Index, respectively — with three - year returns of 16.00 % and 16.56 %, respectively, and five - year returns of 15.68 % and 15.62 %, respectiv
Bond Index (MXN) and S&P / BMV Corporate Eurobonos
Bond Index, respectively — with three - year returns of 16.00 % and 16.56 %, respectively, and five - year returns of 15.68 % and 15.62 %, respectiv
Bond Index, respectively — with three - year returns
of 16.00 % and 16.56 %, respectively, and five - year returns
of 15.68 % and 15.62 %, respectively.
Our investment team will typically select 25 to 50
different bonds ** per account — with no single
issuer making up more than 15 %
of a national portfolio.
The index tracks over 79,000
bonds from over 22,000
different issuers, and it represents a market value
of more than USD 1.5 trillion.