Sentences with phrase «grade bond rating»

Each project, at the time of its application for assistance, is required to furnish a preliminary rating opinion letter from one of the bond rating agencies identified by the Securities and Exchange Commission as a «Nationally Recognized Statistical Rating Organization,» indicating that the project's senior debt obligations have the potential to achieve an investment - grade bond rating.
Currently, BBB - rated bonds are equal to 45 % of the entire outstanding high - yield market, which has increased from 30 % a decade ago.3 Since BBB is the lowest investment - grade bond rating, the risk is that many poor credits will fall, like angels, from the investment - grade into the high - yield universe.
It is just hanging on to its investment grade bond rating.
Invests primarily in investment - grade bonds rated BBB / Baa and above.
In short, long - term investors should carry the majority of their bond exposure in more reliable, income - producing bonds that carry investment grade bond ratings.

Not exact matches

Canada's DBRS is the only credit rating agency willing to give Portugal an investment grade, which allows the European Central Bank to buy Portuguese government bonds.
Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.
But it also launched two new schemes, one to buy 10 billion pounds of high - grade corporate bonds and another — potentially worth up to 100 billion pounds — to ensure banks keep lending even after the cut in interest rates.
At the moment, the ECB can not purchase Greek bonds because they do not have an investment grade rating.
Also last week, the credit - ratings agency Standard & Poor downgraded its bonds to the lowest level still considered investment grade, according to CNN Money.
This tool uses the present value of bond portfolios, adjusted for interest rate and inflation expectations, to show current retirees how much in retirement savings they need today to account for every $ 1 they need in the future, assuming they hold a portfolio made up entirely of investment - grade bonds and longer - term Treasurys.
The high - grade bond market is springing back to life as corporations race to issue new debt and get out in front of a possible Fed interest rate hike.
By secular reflation, we mean at least a decade in which short - and long - term interest rates stay habitually below nominal GDP growth and high grade bonds are not really bonds any more: delivering trend returns that are close to zero or even negative.
California's bonds are rated lower than those of any other state, but are still investment grade, and investors are still buying.
² About 37 % of the 129 convertible bonds surveyed were rated below investment grade.
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.
Meanwhile, during the same period, the average annual return for investment - grade government bonds was 5.72 % for a real rate of return of 5.72 % — 2.93 % = 2.79 %.
A bond rating is a grade given to bonds that indicates their credit quality.
Higher rated bonds, known as investment grade bonds, are seen as safer and more stable investments that are tied to corporations or government entities that have a positive outlook.
Investment grade bonds contain «AAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decrease.
Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market.
The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass - through securities, and asset - backed securities.
The Barclays U.S. Aggregate Bond Index is a market value — weighted index of investment - grade fixed - rate debt issues, including government, corporate, asset - backed, and mortgage - backed securities, with maturities of one year or more.
Over the last twenty years, investors have witnessed a steady decline in the interest rate on investment grade bonds, GICs and term deposits.
Represents the corporate and government - related sectors of Bloomberg Barclays Global Aggregate Bond Index (which provides a broad - based measure of the global investment - grade, fixed - rate debt markets) and is considered representative of global investment - grade debt.
Barclays U.S. Aggregate Bond Index is a broad - based, market - value - weighted benchmark that measures the performance of the U.S.dollar - denominated, investment - grade, fixed - rate, taxable bond marBond Index is a broad - based, market - value - weighted benchmark that measures the performance of the U.S.dollar - denominated, investment - grade, fixed - rate, taxable bond marbond market.
All else equal, unless it possesses some sort of major offsetting advantage that makes the risk of non-payment low, a company with a low - interest coverage ratio will almost assuredly have bad bond ratings, increasing the cost of capital; e.g., its bonds will be classified as junk bonds rather than investment grade bonds.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to rise in Feb: HW Corp bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury yield reaches 3.0 % for first time since 2014: CNN Money
Investment - grade bonds represented by the Bloomberg Barclays investment - grade Index, consisting of publicly issued, fixed rate, non-convertible investment grade debt securities.
Investment grade bonds are considered to be lower risk and, therefore, generally pay lower interest rates than non-investment grade bonds, though some are more highly rated than others within the category.
Interest - rate risk is generally greater for longer - term bonds, and credit risk is generally greater for below - investment - grade bonds, which may be considered speculative.
Rated bonds fall into one of two categories: investment grade or non-investment grade (also known as high yield).
Investment grade vs. non-investment grade (high yield) Corporate bonds are generally rated by one or more of the three primary ratings agencies: Standard & Poor's, Moody's, and Fitch.
Each account will contain investment - grade taxable bonds rated BBB − or higher at time of purchase.2 The investment team will seek to maintain an overall portfolio credit rating average of A −.2 Please be aware that lower rated bonds do carry additional risk compared to higher rated bonds.
TAXABLE BOND FUNDS: B - CHY - Corporate High - Yield Bond: Invest generally in corporate bonds rated below investment grBOND FUNDS: B - CHY - Corporate High - Yield Bond: Invest generally in corporate bonds rated below investment grBond: Invest generally in corporate bonds rated below investment grade.
The issues are rated below investment grade by bond rating agencies.
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
In pursuance of the Union Budget 2018 announcement, the board also cleared a proposal on changing the investment grade rating from AA to A for corporate bonds, which would boost investment scope while ensuring credit quality.
Despite the Fed's 25 basis point rate hike, intermediate term investment grade bonds (Corporates and Munis) still squeaked out positive returns in Q1.
A bond rated BBB or higher (A-3 or higher, for short - term debt) is considered investment grade.
Plenty of investment - grade credit bonds suspended coupon payments in the Depression, transiting directly from A to D rating without even making a pit stop at a C junk rating.
These bonds are considered risky investments and tend to pay higher interest rates than Investment grade debt.
Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).
Companies with excellent to low credit ratings issue investment - grade corporate bonds, which have lower interest rates because of the safety of the investment.
Despite their diversification rule, dollar - denominated high - grade bonds offer low yields and a great likelihood of capital losses this year as the Federal Reserve (Fed) raises interest rates.
High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.
In February 2014, rating agencies downgraded Puerto Rico's general obligation debt and some related bonds below investment grade, with further downgrades possible.
At issuance, around 90 per cent of the bonds and loans in domestic CDOs were investment grade (rated BBB or above by S&P), with 10 per cent sub-investment grade or unrated.
This is a market - based estimate of the amount of fear in the bond market Bass - rated bonds are the lowest quality bonds that are considered investment - grade, rather than high - yield.
BarCap Aggregate Bond Index - A broad - based benchmark that measures the investment grade, U.S. dollar - donminated, fixed - rate taxable bond market, including Treasuries, government - rated and corporate securities, MBS (agency fixed - rate and hybrid ARM pass - throughs), ABS, and CBond Index - A broad - based benchmark that measures the investment grade, U.S. dollar - donminated, fixed - rate taxable bond market, including Treasuries, government - rated and corporate securities, MBS (agency fixed - rate and hybrid ARM pass - throughs), ABS, and Cbond market, including Treasuries, government - rated and corporate securities, MBS (agency fixed - rate and hybrid ARM pass - throughs), ABS, and CMBS.
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