Sentences with phrase «high yield bonds»

Anyone reading this who has investments in high yield bond funds should get out now.

At the same time, the market will be taking down the prices of higher yielding bonds as slowing growth leads investors to demand higher returns when taking credit risk.

This was more liquid than the comparable high yield bond market activity levels of $ 6 billion.

Credit risk is a greater concern if the fund invests in lower - quality bonds such as high yield bond funds.

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

Similarly, yield spreads on high yield bonds of 8.1 % are also well above their historical averages of 5.6 %.

High yield bonds do care about the stock market.

High yield bond spreads are a little tighter than they should be according to the analysis.

However, including high yield bonds in portfolios has been less exciting.

You can easily roll your money into higher yielding bonds quickly if the maturity is shorter.

This shouldn't surprise us, because the credit quality was low and the volume of high yield bond issues was high 2004 - 2006.

Lower credit ratings High Yield Bonds have lower ratings due to the potentially greater risk involved.

Short term high yield bond funds limit interest rate risk, but also returns from credit exposure.

That's unusual, as is their policy where they don't buy high yield bonds.

Because investors are being asked to assume this risk, high yield bonds tend to come with higher coupon rates, which can generate additional investment income.

Call risk High yield bonds are more likely to have call provisions, which means they can be redeemed or paid off at the issuer's discretion prior to maturity.

These investments are still subject to credit risk, just like high yield bonds, even if these loans are typically backed by collateral.

High Yield Bonds via Corporate Debt investment instruments (ETFs, Mutual Funds, Individual Bonds and other exotic instruments) provide a unique risk / reward equation unparalleled in recent times.

Future high yield bond returns will likely be more muted — and depend more on improving fundamentals than commodity prices.

If you could look at high yield bond trades you would have seen that they were declining as well.

Meanwhile, municipal high yield bonds have held their own.

I would never suggest purchasing individual high yield bonds.

We are proud to have provided our shareholders with what we believe is a conservative approach to investing in high yield bonds since 1995.

The way to make money in high yield bonds over the long term is to try to avoid as many of the eventual defaults as possible.

It's kind of like a high quality high yield bond.

In my last two videos I talked about high yield bonds and preferred shares.

I calculate growth based on 6.5 annual rate of return (half a basis point more than the average high yield bond fund).

A more aggressive strategy is to invest the $ 201 monthly difference in some now higher yielding bonds, given they have sold off due to the interest rate increase.

The total return expectation for owning high yield bonds today is negative.

High yield bonds generally have greater price swings and higher default risks than investment grade bonds.

If they can not find buyers easily (think high yield bond funds) there could also be a run on the fund or you could be gated in.

In comparison, bonds issued by corporations, particularly high yield bonds, have a higher probability of default.

Here's my bias: at the first investment shop I worked in, the high yield manager told me that there is a nominal yield for high yield bonds which reflects the risk.

Even riskier high yield bonds have held up relatively well.

Call provisions allow municipalities to call higher yielding bonds issued over the last several years with new issues at lower and lower rates.

Interest rate risk Although high yield bonds have relatively low levels of interest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be a factor.

This doesn't mean you should completely avoid high yield bonds.

Investors have rushed over to high yield bond exchange - traded funds (ETFs) in a search of yield.

Risk and reward is always related, so higher yielding bonds always carry more risk of default.

The focus on short term high yielding bonds allows us to screen for the «best in class» short term high yielding fixed income ETFs.

Senior loans are higher in the capital market structure than unsecured high yield bonds and are also floating rate instruments.

High yield bonds remain more attractive than leveraged loans.

I invest that middle - term money in a mix of junk high yield bond funds and «high» yield savings accounts at an online bank.

The only problem here is if interest rates have risen since your initial investment, your bond won't be worth as much because higher yielding bonds will be available elsewhere.

The index represents typical duration for the broad high yield bond market.

In other words, high yield bonds contain much of the same risk as stocks.

The plan is to invest in a global portfolio of corporate and government high yield bonds and in floating rate bank loans.

The article makes the point that unlike most ETFs, high yield bond ETFs often trade at prices far from their fair value.