Sentences with phrase «higher credit quality issuers»

While tough economic times and reduced tax revenues possibly might create difficulties for some states in re-paying municipal bonds, credit risk can be reduced by focusing on ETFs which invest in higher credit quality issuers.

Not exact matches

• Lower - quality debt securities generally offer higher yields but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

The dual coverage from the issuer and the cover pool typically makes covered bonds a high credit quality investment.

High yield bonds are better known as junk bonds because the credit quality of the underlying bond issuer is low.

Although the fund only buys high - quality investments, investments backed by a letter of credit have the risk that the provider of the letter of credit will not be able to fulfill its obligations to the issuer.

Quality debt depends on the reliability of the issuer: The greater the ability to meet interest and principal payments, the higher the credit rating by the major rating agencies.

These are bonds paying a high rate of interest because the issuers are of lesser credit quality than government and investment - grade corporate bonds.

Lower - quality fixed - income securities generally offer higher yields, but also carry more risk of default or price changes due to potential changes in the credit quality of the issuer.

The credit quality of these bonds is lower due to higher levels of financial risk that raises the issuer's risk of insolvency.

The fund invests in high - quality, U.S. dollar - denominated, short - term debt securities of domestic and foreign issuers that have been determined to present minimal credit risk and comply with strict Securities and Exchange Commission (SEC) guidelines applicable to money market funds.

These issuers must pay a higher interest rate to attract investors to buy their bonds and to compensate them for the risks associated with investing in organizations of lower credit quality.

To compensate for lower credit quality, the issuer of the instrument (call it the borrower) may offer you a slightly higher interest as a compensation for taking the higher risk.»

Filed Under: Daily Investing Tip Tagged With: daily investing tip, growth companies, growth stocks, high quality growth, Investing, Investment Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

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