Not exact matches
The DRS has had more downside risk than traditional investment -
grade bonds, but with the lack of yield available in fixed income, an increasing number of investors are open to the idea of an allocation to «
alternative fixed income.»
An independently held CD ladder or investment
grade bond ladder could be considered as an
alternative to publicly held
bond funds in addressing the important portfolio component of investment
grade fixed income.
The diversified portfolio is based on a 5 % allocation to cash, 25 % allocation to investment
grade bonds, 5 % allocation to municipal
bonds, 20 % allocation to S&P 500 Index, 10 % allocation to small caps, 5 % allocation to commodities, 15 % allocation to international equities, 5 % allocation to emerging markets, 5 % allocation to REITs, and a 5 % allocation to
alternatives.
The S&P 500 High Yield Corporate
Bond Index presents a unique credit
alternative to bridge the gap between existing investment
grade, which offers spread levels of around 150 bps, and high - yield corporate credit, which offers north of 600 bps in spread.
Meanwhile, adding exposure to international investments can help savings weather downturns in the U.S. markets, and high - yield
bonds can provide an
alternative to investment -
grade corporate
bonds.
Bethesda, MD, March 29, 2011 — ProShares, a premier provider of
alternative exchange traded funds (ETFs), today announced the launch of the first ETF in the United States that provides inverse exposure to the investment
grade corporate
bond market.
«Investors have either changed their perception of the risk in those subordinate
bonds (non-investment
grade) and are willing to accept lower spreads, or investors are looking at fairly unattractive investment
alternatives and have decided that CMBS is a good place to be,» says Hurley.