Sentences with phrase «grade bonds increased»

As inflation was tamed and interest rates descended from an eye - popping 15.8 % in 1981, the value of high - yielding investment - grade bonds increased dramatically.

Not exact matches

«Often, high - grade bonds in an investment portfolio increase its risk.»

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.

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

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.

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.

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.

While the city's bond rating was downgraded to A +, the third - highest grade issued by S&P Global Ratings, last year, the agency improved the city's outlook to «stable» due to the city increasing non-property tax revenues, decreasing discretionary spending and securing $ 12.5 million from the state that wasn't an advance on payments the state owes the city for the Empire State Plaza.

The par amount outstanding of investment - grade corporate debt, as measured by the S&P U.S. Investment Grade Corporate Bond Index, has increased over USD 4 trillion since September 2007, while the amount of speculative - grade outstanding, as measured by the S&P U.S. High Yield Corporate Bond Index, has increased by USD 800 billion.

The back - tested results of the 17 - year period ending Feb. 28, 2017, show that the S&P U.S. High Yield Low Volatility Corporate Bond Index may offer an intersection that bridges the volatility gap between the high - yield and investment - grade bond sectors, with increased return efficieBond Index may offer an intersection that bridges the volatility gap between the high - yield and investment - grade bond sectors, with increased return efficiebond sectors, with increased return efficiency.

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.»

Lower - rated credit indices such as the S&P U.S. High Yield Corporate Bond Index and the S&P / LSTA U.S. Leveraged Loan 100 Index have not greatly outpaced investment grade corporates YTD, given the increase in risks.

You should also increase your portfolio's overall allocation of safe investments, such as GICs, short - term investment grade bonds, or real - return bonds.

As it implies, laddering refers to buying various increasing maturities of equivalent - value certificates of deposit (CDs) or investment grade corporate bonds.

Hold - n - hope advocates believe that greater gains with stocks over investment grade bonds require nothing more than a commitment to accepting increased volatility.

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.

«So to postpone the impact of any increase as long as possible, we've shifted some of our long bond exposure to U.S. investment - grade corporate bonds offering decent yields.»

A brief flight to quality increased demand for U.S. Treasuries (S&P U.S. Treasury Bond Index), municipals (S&P Municipal Bond Index), and investment - grade corporates (S&P U.S. Investment Grade Corporate Bond Index), and U.S. equities briefly dipped back into the red.

For example, an oil company that has reported sustained losses over several quarters due to falling oil prices may see its investment - grade bonds downgraded to junk status due to increasing risk of default.

For newly issued BBB bonds, there is an increase in change of control covenants, which would allow bondholders to sell their bonds at investment grade levels (if not better) in a takeover.

The increase in Treasury yields mirrored the returns of investment grade and BBB crossover issues, which are sensitive to movement in interest rates, while lower rated CCC - rated bonds had slightly positive returns (primarily due to 800 bps of Treasury spread insulating their sensitivity to interest rate movements).

In October, U.S. Treasury yields declined 23 basis points on a year - over-year basis, while corporate debt on the low end of the investment grade spectrum increased more than 65 basis points, nearly a 90 basis point increase in the spread between U.S. Treasuries and the low - end of investment grade corporate bonds.