The higher default risk is the chief reason that speculative -
grade bond issuers have to pay higher interest rates that go hand - in - hand with the so - called credit migration risk (or credit rating risk), which is part of the credit risk by extension.
Not exact matches
Amazon has been an infrequent
issuer in the investment -
grade bond market, with only $ 7.8 billion of debt outstanding as of June 30.
High yield (non-investment
grade)
bonds are from
issuers that are considered to be at greater risk of not paying interest and / or returning principal at maturity.
Cons: The primary negative associated with investment
grade floaters is that when issued they generally offer current yields that are significantly lower than a typical fixed rate
bond of the same maturity offered by the same
issuer.
According to Bloomberg, as of June 15, 2016, more than 60 % of the
issuers in the iShares J.P. Morgan USD Emerging Markets
Bond Index are rated investment
grade.
The manager aims to produce high income returns by investing predominantly in investment
grade or high - quality
issuers, including the subordinated corporate
bond issues of investment
grade business.
The S&P International Corporate
Bond Index is comprised of non-U.S. investment
grade corporate
issuers and is calculated in US dollars.
The index will rank U.S. Treasuries, U.S. investment
grade corporate
bonds, U.S. investment
grade mortgage backed securities, U.S. high yield debt and U.S. dollar denominated debt of emerging market
issuer according to their momentum / trend scores.
Illiquid asset Immediate - or - cancel Income
bond Income statement Indenture Index Indication of interest Individual Retirement Account (IRA) Industrial revenue
bonds Inflation Inflation rate Initial public offering Inside market Insider Instinet Institutional investor Intangible drilling and development costs Integration Interbank market Interest Intermarket Trading System (ITS) Interpositioning In - the - money Intrastate offering Intrinsic value Introducing broker / dealers Inventory Inverted head and shoulders pattern Investment Investment adviser Investment Advisers Act of 1940 Investment banker Investment Company Investment Company Act of 1940 Investment contract Investment
grade securities Investor brochure In - whole call IOC IPO Issue
Issuer
The «Big Three» agencies (Standard & Poor's, Fitch, and Moody's) analyze the
bond issuers» financial health and assigns a letter
grade.
These are
bonds from
issuers whose risk levels prevent them from qualifying for «investment
grade ratings» by the primary
bond credit rating agencies.
A diversified portfolio of nearly 200 dollar - denominated investment
grade corporate
bonds from both U.S. and foreign
issuers.
Duration: Investment
grade corporate
bonds of the
issuers of the S&P 500 Index are tracked in the S&P 500 / MarketAxess Investment
Grade Corporate
Bond Index.
The majority of the index is investment -
grade bonds, with only 7.6 % of the
issuers rated high yield.
Below investment
grade issuers, whose credit risks rating agencies view as a higher concern, and which comprise the S&P U.S. Issued High Yield Corporate
Bond Index, are yielding 4.66 % (YTW).
High - yield
bonds (sometimes referred to as junk
bonds) typically offer above - market coupon rates and yields because their
issuers have credit ratings that are below investment
grade: BB or lower from Standard & Poor's; Ba or lower from Moody's.
Manage volatility Because
issuers of
bonds generally make interest payments and repay principal, investment -
grade bonds can be less volatile than stocks.
These are
bonds paying a high rate of interest because the
issuers are of lesser credit quality than government and investment -
grade corporate
bonds.
DEX Universe
Bond Index: With over 1,000
bonds represented, this index has broad representation from investment -
grade bonds issued by Canadian companies and by government - sector
issuers.
The
bond investment
grade is assigned after assessing the potential of the
bond and the
bond issuer and depicts how likely and reputed the
bond issuer is when it comes to the interest (coupon) payment and also the repayment of the principal face value amount once the
bond maturity period is completed.
This has particularly been the case for
issuers rated below investment
grade, like Rogers Communications, who have accessed the well developed U.S. high yield or junk
bond market.
Credit rating agencies assess the risks of certain
bonds, issuing
grades that reflect the
issuer's ability to meet the promised principal and interest payments.
With a portfolio composed of investment -
grade debt from corporate, sovereign and supranational
issuers with three - year maximum maturities, the iShares 1 - 3 Year Credit
Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield than comparable all - Treasury funds, but it does have a marginally higher credit risk.
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.
The S&P 500 ® Energy Corporate
Bond Index, a sub-index of the S&P 500
Bond Index that includes both investment -
grade and high - yield
issuers of the equity index, has returned -0.11 % MTD and -0.72 % YTD.
Names such as Bank of Nova Scotia, CSX, Toyota Motor Credit and Morgan Stanley for investment
grade issuers and high yield
issuer of American Energy Permian Basin, MHGE Parent, Rex Energy and Viking Cruises added to the supply of
bonds for last week.
A fallen angel is a
bond that was given an investment -
grade rating but has since been reduced to junk
bond status due to the weakening financial condition of the
issuer.
The following report includes a company - by - company comparison of Canadian high yield
bonds» covenant strength based on Moody's Covenant Quality Assessments: The Canadian High Yield Bond Market: Frequently Asked Questions Canadian Corporations: Canadian High - Yield Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
bonds» covenant strength based on Moody's Covenant Quality Assessments: The Canadian High Yield
Bond Market: Frequently Asked Questions Canadian Corporations: Canadian High - Yield
Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield
Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
Bonds Offer More Investor Protection Than US
Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative -
grade issuers in the Canadian market: High Yield Insights for Canadian Investors
Up until now it has invested, quite successfully, in «secured instruments, including bank loans and
bonds, issued primarily, but not exclusively, by below investment
grade issuers.»
High - yield
bonds can sometimes be less liquid than investment -
grade bonds, depending on the
issuer and the market conditions at any given time.
She has represented both underwriters and
issuers in a variety of financing transactions, such as initial public offerings, secondary equity offerings, high - yield, investment -
grade and convertible
bond offerings, and debt restructurings.