Sentences with phrase «grade bonds for»

Most long - term investors may benefit from carrying the bulk of their fixed - income exposure in investment grade bonds for the sake of reliable, long - term cash flow.

One good strategy is to look beyond traditional domestic investment - grade bonds for some of your fixed income allocation.

In addition to raising a total of $ 22.6 billion in high - grade bonds for Apple and T - Mobile USA last year, Deutsche served as the go - to bookrunner for the multibillion - dollar bonds deals of Italy, Spain other beleaguered European governments — and even the European Financial Stability Facility.

Speculators and distressed investors making a living off high - risk, high - reward opportunities could turn to non-investment grade bonds for speculative opportunities.

Not exact matches

Strong investor demand for CVS Health's $ 40 billion M&A bond gave a shot of confidence to the U.S. high - grade bond market.

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.

A second reason for looking at junk bonds is that they may be a more sensitive indicator, perhaps a more sensitive leading indicator, of economic conditions than higher - grade bonds.

«Market volatility should be a reminder for you to review your investments regularly and make sure you consider an investing strategy with exposure to different areas of the markets — U.S. small and large caps, international stocks, investment - grade bonds — to help match the overall risk in your portfolio to your personality and goals,» says Dowd.

When bonds yield 1.75 % for investment - grade bonds, then it's difficult to turn that into a 5 % -10 % return going forward... If he wants to argue against that, and talk about Dow 5000 and bear and bull markets, then he's welcome to, but he's pushing at windmills in my opinion, and he belongs back in his ivory tower.

In the credit markets, both investment - grade and high - yield corporate bonds had negative returns for the first time in eight quarters, with down - in - quality subsectors in each unconventionally outperforming higher quality ones.

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 %.

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.

Another way is to boost yield is to relax credit quality a little by opting for investment grade corporate bonds instead of triple - A government treasuries.

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.

When bonds yield 1.75 % for investment - grade bonds, then it's difficult to turn that into a 5 - 10 % return going forward.

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

For people looking for ways to boost the income of a portfolio, that has often meant casting a wider net than the traditional core holdings of U.S. Treasuries and investment grade corporate bonFor people looking for ways to boost the income of a portfolio, that has often meant casting a wider net than the traditional core holdings of U.S. Treasuries and investment grade corporate bonfor ways to boost the income of a portfolio, that has often meant casting a wider net than the traditional core holdings of U.S. Treasuries and investment grade corporate bonds.

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.

The one I come back to is surprisingly simple: Increased demand for quality long - term bonds combined with a limited supply has created ashortage of investment - grade securities.

For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

The average bid / ask spread was 29 cents (per $ 100 par value) for both investment - grade and high - yield bonds, and the average daily trading volume was $ 2.2 million ($ 2.5 million) for investment - grade (high - yield) corporate bonds.

That large bid / ask spread is equivalent to almost two years of the spread advantage of illiquid (as measured by bid / ask spread) investment - grade bonds, creating a large hurdle for providing a liquidity premium.

Emerging companies While many high yield bonds are issued by former investment grade companies in decline, the high yield market also provides financing opportunities for emerging companies seeking working capital for expansion or to fund acquisitions.

The average market impact cost was 29 basis points (39 basis points) per $ 1 million traded for investment - grade (high - yield) corporate bonds.

Typically, the market for high yield bonds is less liquid than the market for investment grade or government bonds.

It's not going to be possible to have the same type of 5 - 6 % annual returns in high - grade bonds that investors have become accustomed to for the past 30 + years.

They note, for example, that the size of large trades of US investment grade corporate bonds (so - called «block trades») has continuously declined in recent years.6 Furthermore, in most corporate bond markets, trading appears to be highly concentrated in just a few liquid issues, and concentration appears to be increasing in some market segments.

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.

I would highly urge investors to ensure a portion of their portfolio is in a historically reliable store of value — investment - grade municipal bonds, for instance, and gold bullion and gold mining stocks.

For example, Fidelity will allow you to search both investment grade and junk bonds, show you the number of bonds available at both the bid and ask price, and will even allow you to submit a limit order (although you can not put in a good until cancelled order or one that is more than a small amount away from the current bid / ask).

A bond rated BBB or higher (A-3 or higher, for short - term debt) is considered investment grade.

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).

For example, by comparing a group of corporate bonds (like investment grade corporate bonds) vs. treasuries, you get a picture of where the average investment grade bond credit spread currently stands.

The eventual downgrade to junk, aka non-investment grade, will make IL debt ineligible for investment for some of their major institutional investors (one of which has already called for a boycott of Illinois debt) which are restricted by mandate to purchase only investment grade muni bonds.

The same could be said for lower - grade, dollar - denominated bonds except the improvement in credit quality brought from accelerating economic growth will partially protect these bonds from the full extent of the losses suffered by high - grade bonds.

We prefer U.S. investment grade bonds against this backdrop of reduced compensation for credit risk.

The big takeaway for those seeking to buy into market weakness: Be wary of buying notionally cheap assets that face challenges (e.g. domestically - focused European assets like U.K. real estate and European banks), and instead focus on assets with relatively attractive valuations and positive fundamental drivers, such as quality stocks, dividend - growth stocks and investment - grade bonds.

Municipal bonds have an outlook much like the low - grade bonds but the lack of a need for tax protection counts them out of this portfolio anyway.

If you are looking for a place to ride out these choppy market waters while awaiting more compelling equity valuations, the short end of the US investment - grade corporate bond market looks to be a less risky part of the market.

In 2015 Creditex expanded into serving the bond market, through the launch of ICE Credit Trade, a leading electronic platform for trading investment grade and high yield corporate bonds.

Meanwhile, Bloomberg reports that pension funds, squeezed for sources of safe return, have been abandoning their investment grade policies to invest in higher yielding junk bonds.

In the absence of a pickup in consumer spending, annualized, real GDP — adjusted for inflation — is forecast to be between 2 % and 2.5 %, instead of the 4 % average since World War II, and annualized returns on US equities and investment - grade bonds is estimated at 4 % and 1 %, respectively, for the next 10 years.

Interest - rate risk is greater for longer - term bonds, and credit risk is greater for below - investment - grade bonds.

The bonds are all investment - grade and short - term so don't go looking for yield here.

He joined Leith Wheeler from TD Bank in January 2009, where he'd spent the previous 10 years trading a proprietary bank portfolio of credit default swaps, investment grade and high yield bonds for TD in New York and London.

The average bid - offer spread for trading an investment grade corporate bond, for example, is 50 basis points.

CNH is now rated investment grade by two of the three ratings agencies, making its bonds eligible for investment - grade indexes, which will lead to lower spreads.

Using total credit premiums, trading volumes and characteristics for a broad sample of U.S. investment grade and high yield corporate bonds during January 1994 through December 2015, he finds that: Keep Reading

Out of the almost 5K investment - grade bonds issued by S&P 500 companies, the tracked index for the ProShares S&P 500 Bond ETF (SPXB) selects up to 1K...