Sentences with phrase «high yield bonds tend»

In addition, high yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell the bonds.

Stocks and high yield bonds tend to do well after the first day of the new year.

Spread curves of high yield bonds tend to invert when the Treasury yield curve is steeply sloped.

High yield bonds tend to move more closely with the stock market.

Both equities and high yield bonds tend to zig and zag, together.

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.

Not exact matches

(Bond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratBond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratbond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest rates.)

For instance, Morningstar found that passively managed target - date funds tend to have fewer holdings in high - yield bonds and Treasury inflation - protected securities than their actively managed counterparts.

High - dividend stocks such as utilities and phone companies fell; those stocks are often compared to bonds and they tend to fall when bond yields rise, as higher bond yields make the stocks less appealing to investors seeking income.

Slow but steady economic improvements tend to favor high - yield bonds.

Stocks with a history of consistently growing their dividends have historically tended to perform well and exhibit less volatility in a rising rate environment, while high yielding dividends, often considered «bond - like proxies,» have tended to be more vulnerable (due to their high debt levels) and have historically followed bond performance when rates rise.

The risk taker, for example, tends to make risky investments such as real estate investment trusts, options, currency trading, and high yield bonds.

In the short run, rising equity values would tend to drive bond prices lower and bond yields higher than they otherwise might have been.

Short - term bonds tend to be less vulnerable to rising rates than longer - term bonds, while typically providing a higher yield than cash.

Higher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portHigher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a porthigher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portfolio.

Hosansky added that companies that issue investment - grade bonds will tend to benefit much more than those that issue high - yield bonds.

They often include instruments such as high yield, emerging market debt and other more esoteric instruments that tend to be missing from traditional bond funds.

Historically, stocks do tend to trade at higher valuations when bond yields are lower.

The S&P 500 High Yield Corporate Bond Index tracks the junk bonds of issuers of the S&P 500 and as the yields indicate, on average, they tend to be better quality than the bonds in the broader index.

In the short run, rising equity values would tend to drive bond prices lower and bond yields higher than they otherwise might have been.

The U.S. interest rate hike signals that the Fed is feeling optimistic about the economy and tends to cause bond yields on both sides of the border to move higher, said Rob McLister, founder of RateSpy.com.

For example, high - yield bonds have historically tended to fare well during periods of rising rates.

Call Risk Appears Limited for Preferreds Both preferreds and high yield bonds share call risk, though preferreds tend to have more callable issues.

Not surprisingly, both charts show that when inflation is climbing both bond yields and earnings yields tend to be pressured higher.

High - yield bond funds tend to invest in riskier bonds.

That's because bond yields and stock valuations tend to track each more closely at higher levels of inflation.

Short - term bonds tend to be less vulnerable to rising rates than longer - term bonds, while typically providing a higher yield than cash.

Vertical factor: spread of Baa bond yields over Aaa bond yields — Hypothesis: When spreads are high, stock valuations tend to be low.

Horizontal factor: Yield on Baa bonds — Hypothesis: When yields are high, stock valuations tend to be low.

As you observed, the ones that has lower yield lost less in general tends to have higher quality bonds (often less junky)

These funds tend to invest tactically in a wide variety of bond sectors that may include high - yield or non-U.S. bonds.

The longer - duration bonds tend to become risky, so the expected yields are higher.

Because bonds tend to be higher yielding than your cash, you would always assign your fixed income assets to the right hand side of this line.

In addition, high - yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell them.

High - quality bonds tend to go up in value and accrue more interest, similarly to cash — which has no yield — but does appreciate dramatically, when everything else goes down.

Moreover, as government bonds have higher investment grade score, the yield rate tends to be low.

Improving High - Yield Bond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolHigh - Yield Bond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfoYield Bond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolBond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolhigh - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfoyield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolbond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolios.

Because municipal bonds tend to have lower yields than other bonds, the tax benefits tend to accrue to individuals with the highest tax burdens.

Corporate bonds tend to carry a higher level of risk than government bonds, but they generally are associated with higher potential yields.

This demonstrates that as high yield and emerging market bonds have more exposure to credit spreads than duration risk, they tend to exhibit more equity - like properties and a strong correlation with equity volatility.

Another important takeaway from the Callan table is the value of holding a portion of your nest egg in a safe haven like investment - grade bonds (as opposed to high - yield, or junk, bonds, which are more volatile and tend to move more in synch with stocks than bonds).

According to the same fact sheet, Canadian municipal bonds offer an attractive risk / return profile since they tend to command higher yields than provincial or federal bonds.

That said, the risk premium factor shows that the largest gains tend to come in the southwest quadrant: low equity valuations and high Baa bond yields, which is a perfect set - up for mean reversion.

Not surprisingly, senior loans tend to have slightly smaller, but less volatile returns than high yield bonds (See Total Returns table).

As with credit risk, uncertainty regarding bonds tends to result in lower prices and higher yields.

In addition, the prospect of inflation tends to push bond prices lower and yields higher, because inflation erodes the purchasing power of fixed - income payments.

Junk bonds have tended to outperform the higher rated bonds after a recession, and have been the preferred instrument for 2009, yielding a 43 % return as at the end of November 2009, according to Morningstar.

So, and correct me if I'm mistaken, low interest rates lead to high inflation, which tends to raise bond yields, which then in turn raises interest rates which then leads to lower inflation?

That tends to push the prices higher, and with a bond, the yield goes down when the price rises.

Hosansky added that companies that issue investment - grade bonds will tend to benefit much more than those that issue high - yield bonds.