Sentences with phrase «good bond ratings»

In addition to the standard measures, I look for companies with good bond ratings.

In addition to the standard measures, I look for companies with good bond ratings, which are the best single measure of a companyâ $ ™ s creditworthiness.

During that vote we stated that ECMC would be best served working with the Erie County Fiscal Stability Authority (ECFSA), and that proved to be true as the ECFSA has a better bond rating and therefore it's cheaper to borrow through them.

The county allowed the hospital to have the Erie County Fiscal Stability Authority — better known as the control board — borrow money on the hospital's behalf because the control board has a far better bond rating than the hospital and can borrow money much more cheaply.

Not exact matches

For example, interest - rate - sensitive income stocks and bonds tend to do well coming out of the trough, and more cyclical companies excel later on as the recovery gains steam.

Many of the sectors in question did well in 2016, in spite of the rise in bond rates.

The move is a novel way for the San Mateo, Calif., company to finance the enormous cost of installing panels on thousands of roofs — a typical residential system costs $ 25,000 — while appealing to retail investors who are on the hunt for better rates of return than they can find in savings accounts and government bonds.

At some point, investors who are conflating high - yielding consumer staples stocks with bonds or who are taking interest rate risk in long - dated Treasurys will see drawdowns as well.

Alternatively, it's best to shorten the average term to maturity of your bond portfolio as interest rates enter into a rising cycle, because the shorter the term, the less their price will be affected.

Exchange - traded funds that track high - yield bond indexes have been the beneficiaries of a cash surge in recent weeks as market participants figure the central bank probably won't raise rates in 2015, and it could be well into 2016 before anything happens.

A softening in euro zone economic data and signs that inflationary pressures remain subdued, encouraging the European Central to hold off from raising interest rates until well into 2019, have supported bond markets in recent weeks.

With interest rates so low, stocks are better than bonds, but the Canadian market, he says, should see mid-single-digit returns.

«When the Fed was raising rates and bond yields were moving up, traditionally defensives don't do well, and more cyclical stocks tend to do better and financials do better,» he said.

But with the unemployment rate, at 6.2 percent, well below its recession - era peak of 10 percent, and inflation showing no signs of falling further, the Fed has begun to trim its monthly bond purchases, aiming to end them completely by October.

Elsewhere, most better - rated euro zone bond yields rose 2 - 3 bps on the day.

As rates rise, it might be better to hold individual bonds instead of bond mutual funds, said James Shagawat, a certified financial planner with the Baron Financial Group in Fair Lawn, New Jersey.

Obvious possibilities include bank certificates of deposit, zero - coupon bonds (especially good for college - tuition savings), short - to medium - term government bonds, and top - rated corporate bonds.

As well, there is some concern around how an interest rate rise will affect these stocks, most of which pay dividends and thus compete with bonds for investors» money.

In today's volatile environment, it's a good idea to consider building hedges to existing stock and credit allocations with the help of bonds that are more sensitive to interest rates.

A good example of non-investment grade bond can be seen with the S&P's stance on Southwestern Energy Company, which was given a rating of «BB +» bond rating and negative outlook.

So while there could be one or even five year periods where longer maturity bonds perform fairly well from these yield levels, over the long - term they're likely to be a poor investment in terms of earning a decent return over the rate of inflation.

Maybe it would be a good decision to sell your bonds, maybe not, but wasn't the entire point of the bond ladder to take away the guessing game of what's going to happen with interest rates?

The potential counter weights that could cap the 10 - year yield would be a negative stock market reaction that drives investors to bonds; lower interest rates outside the U.S. that make the U.S. debt relatively more attractive, and good demand for longer - dated securities from insurers and others.

Rates affect bond investments, but they also affect all other investments in some form or another because higher rates mean that investors have other options in which to invest (dividend and REIT investors know this all too well in the recent rate increRates affect bond investments, but they also affect all other investments in some form or another because higher rates mean that investors have other options in which to invest (dividend and REIT investors know this all too well in the recent rate increrates mean that investors have other options in which to invest (dividend and REIT investors know this all too well in the recent rate increase).

While bond credit ratings and relative yield can compensate an investor for the relative risk of companies to make good on their debts, the recent past has shown this is not always the case.

The thinking is that, as the bond buying has not worked, then the best way to keep business flowing (and markets steady) would be to keep rates low, which encourages, at least theoretically, companies to borrow, expand and grow the economy.

When people see banks browbeating the bond rating agencies and accounting firms to whitewash the quality of what they're pawning off on their customers, when they see bank lobbyists getting Washington to block state prosecutions of financial fraud so as to clear the way for more predatory lending and false packaging of the junk securities they're selling and to win the right not to reveal their true financial position, there's a good reason not to buy what's in these black boxes.

And I agree that it's a good idea to spread your interest rate risk for bonds in a laddered portfolio.

With the stock market in a free - fall, fixed - income investors anxious about coming interest rate hikes by the Federal Reserve might feel a little better about boring bonds and their measly coupons.

While it decided not to, the Fed did say it expected «further gradual» rate increases would be justified — and there's broad consensus that it will raise rates (which can affect the amount banks charge borrowers, as well as interest paid on bonds) at least three times this year.

Investments in companies engaged in mergers, reorganizations or liquidations involve special risks as pending deals may not be completed on time or on favorable terms, as well as lower - rated bonds, which entail higher credit risk.

: A classic point of contention for risk parity is that interest rates, in general, are too low, and that while the approach may have performed well in the past, it is only because of an historic bond rally, which is unlikely to happen again.

That is hard to achieve, because, well... bonds have interest rate risk!

We could take the $ 16 billion we have in cash earning 1.5 % and invest it in 20 - year bonds earning 5 % and increase our current earnings a lot, but we're betting that we can find a good place to invest this cash and don't want to take the risk of principal loss of long - term bonds [if interest rates rise, the value of 20 - year bonds will decline].»

Advice: Because bonds with longer maturity face greater risk of changing interest rates (and greater default risk, as well), they typically pay higher interest rates.

While the returns of these bonds are affected by interest rates, they are also responsive to the overall economic cycle as well as the growth prospects of the issuing firm.

Some of the best indicators for mortgage rate movement include the yield on 10 - year Treasury bonds from the government and the LIBOR — a rate that determines how much banks must pay to borrow money from each other.

This economic impact works in opposition to the interest rate risk they face: rising rates, which are bad for bonds generally, usually accompany a strong economy, which is good for high - yield bonds; falling rates, which are good for bonds overall, usually accompany a weak economy, which is bad for high - yield bonds.

A downgrade in the credit rating of a bond by the credit agencies can affect bond performance as well if institutional investors are forced to sell because of restrictions on the credit quality of the bonds they're able to hold.

Moody's Investors Service has lowered its bond rating for Michigan State University, meaning the university will no longer get the best interest...

Bonds with a rating of BBB -(on the Standard & Poor's and Fitch scale) or Baa3 (on Moody's) or better are considered «investment - grade.»

For instance, select only bonds rated «A» or better.

But lower interest rates generally mean higher stock and bond prices, as well as increases in the value of real estate, which has been another important source of wealth for many savers, particularly seniors.

By plugging different blends of stocks and bonds (as well as different spending rates) into this retirement income calculator, you can get a good sense of which mix is right for you.

I also discussed in Article 8.3 that Treasury Inflation Protected Securities (TIPS) bonds are likely to provide a particularly good hedge against the true risk of unexpected inflation rate increases.

A well - honed actively managed bond fund might mitigate a portfolio's sensitivity to rising rates.

That's well above rates on bonds and comparable with stocks.

The ECB has said it intends to continue bond purchases until at least September, to keep interest rates at current levels until «well past» the end of the program.

That's because investors who buy bonds are looking for the best rate with the lowest return.

The answer is that Fed policy is the primary factor driving the returns of short - term bonds, meaning that they tend to hold up much better than long - term debt when the Fed is expected to keep rates low as was the case in 2013.