Sentences with phrase «grade bonds yield»

While investment - grade bonds yield 2.4 % on average, HYG yields nearly double that at the moment.

The pricing of stocks is not arbitrary — a high price must be justified by high earnings relative to where an investment grade bonds yield.

How could one argue otherwise on the bond side with investment grade bonds yielding only 1.75 %?

Equities might be cheap relative to cash, but are still expensive relative to junk and low investment grade bond yields.

This fund is comprised of U.S. government and investment grade bonds yielding 4.01 percent as of June 28, 2009.

Not exact matches

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

«What we're doing is reducing exposure to more cyclical industrial corporate credit risk around the globe — high yield bonds, bank loans, investment - grade corporate bonds,» said Collins.

One «canary in the coal mine» could be a move further away from high - yield bonds and into investment - grade fixed income.

Invest in high - yield bonds and dividend - yielding stocks, says the BofA - Merrill team, which is overweight high - grade and high - yield corporate bonds, including financial sector names that are especially sensitive to the housing market.

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.

Our team of credit professionals deliver sales and trading capabilities across a wide range of fixed income asset classes including high yield, distressed and investment grade bonds, convertible bonds, public and private corporate securities, leveraged loans and emerging market debt.

This leaves us roughly in the same position that we started the year, slightly overweight to spread product, i.e., investment - grade and high - yield corporate bonds and emerging markets (more recently, we also went back to a slight overweight on commercial mortgage - backed securities).

We trade all fixed income assets, with a focus on more illiquid situations, from high yield, distressed and investment grade bonds and convertible bonds to public and private corporate securities and leveraged loans.

Only a little more than half of your «40» should be in fixed income, with that allocation roughly equally divided between high - grade, high - yield and international bonds.

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.

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.

High yield / non-investment-grade bonds involve greater price volatility and risk of default than investment - grade bonds.

Unfortunately, long - term bond yields have surged higher in the past two days across all credit grades.

Each fund has a stated objective, generally focusing on a particular sector, such as corporate or Treasury bonds, or broad category, such as investment grade or high yield.

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.

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

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

We would reduce exposure to non-investment grade bonds (high - yield debt).

Last week, spreads on the Morningstar Corporate Bond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higBond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higbond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higher.

Back in 2007, before the financial crisis, a portfolio of investment grade bonds would have yielded comfortably over 5 %.

When there is a downgrade from investment - grade to high - yield status, this inevitably means managers with mandates permitting only investment - grade bonds will have to indiscriminately liquidate the downgraded bond.

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We aim to add value in the Corporate Advantage Fund by generating yield using a relative valuation approach and investing in investment grade corporate bonds, high yield bonds, preferred shares, and other fixed income securities.

Central bank purchases, investor yield - seeking and safe - haven flows have driven down yields on government and investment grade corporate bonds.

A jump in sovereign yields could spark European credit market outflows, hurting richer investment grade bonds.

Rated bonds fall into one of two categories: investment grade or non-investment grade (also known as high yield).

Blackrock Muni Yield Investment Quality (MFT) is a closed end fund that seeks current income exempt from regular Federal income tax through investment in insured investment grade municipal bonds.

The High Yield Bond Fund is a concentrated portfolio made up of liquid securities, focused on high quality non-investment grade bonds with strong cash flows.

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.

Investing in high yield fixed income securities, otherwise known as «junk bonds», is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income 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.

Their data set included constituents of the Bank of America Merrill Lynch investment - grade (US Corporate Master Index) and high - yield (US High Yield Master Index) bond indexes, and covers the period January 1997 through December yield (US High Yield Master Index) bond indexes, and covers the period January 1997 through December Yield Master Index) bond indexes, and covers the period January 1997 through December 2016.

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.

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 average investment - grade (high - yield) bond trades on less than 32 % (36 %) of days over the prior six months — liquidity in corporate bonds was considerably lower than in traditional listed equity markets.

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.

While yields on government bonds remain unattractive, according to Stopford, investment - grade corporate bonds offer a modest pickup in yield — and high - yield bonds, a more significant advantage.

In recent months, the yield on US corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the yield on government debt, dropping within striking distance of the lows seen post the 2008 financial crisis.

With the exception of the very front end of the yield curve, Canadian government bond yields declined, as did spreads on investment grade corporate bonds.

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).

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.