Sentences with phrase «higher duration risk»

As mentioned, if a higher yield to maturity is due to higher duration risk, then this bond will be more subject to interest rate risk.
Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.

Not exact matches

Since 2013, many investors have shunned this bond index, believing the Agg's higher duration or interest rate risk left portfolios exposed to large losses if interest rates shot up.
Collins has adopted a more defensive position in the last 18 months, reducing duration and credit risk by scaling back overweight positions in high - yield and municipal bonds, but he's sticking with allocations to intermediate term funds.
But high yield actually has equity - like characteristics, so if you're immunizing the duration and loading up on credit, you are doubling down on your risk profile.
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.
Duration, expressed as a number of years, measures a bond's interest rate sensitivity: The higher the duration, the higher the interest raDuration, expressed as a number of years, measures a bond's interest rate sensitivity: The higher the duration, the higher the interest raduration, the higher the interest rate risk.
Lesson 3: Duration and Interest Rate Risk — Since interest rates affect bond prices, one of the biggest risks when investing in bonds is that interest rates will move higher, causing the value of your bonds to lose value.
But if the average duration for these two funds is similar, then surely they both risk capital losses from higher interest rates?
The short durations of these funds reduce risk, but also explain why average yields aren't higher.
However, heavy supply and higher duration than the high yield sector are risks, as is rising corporate leverage.
While all four countries have different durations between 5.24 and 6.47, the U.S. has the shortest duration of them all, with the lowest risk profile and the highest yield.
Income potential is higher than U.S. and developed nation bond funds, given the additional risks and longer durations.
We are experienced providing duration matching portfolios with high levels of precision, while also determining the appropriate level of credit risk necessary to generate incremental returns relative government bond portfolio alternatives.
You've got duration levels that are as high as they've ever been globally — That's where the risk is.
Fidelity ® Short Duration High Income Fund (FSAHX) This fund might be appropriate for investors looking for higher yield who are willing to take on more credit risk while limiting interest rate risk.
We are watching all of this play out real - time as fixed - income fund flows are broadly shunning sectors with embedded credit and / or duration risks, in favor of freshly attractive, and lower risk, high - carry assets.
You want to trade him when demand is at its highest (in other words, when competitive teams panic) but you also need to move him before the foot issue returns, unless you're willing to risk keeping him for the duration of his contract.
As a clinical expert in the management of breastfeeding and human lactation, the IBCLC is trained to counsel mothers and families on initiation, exclusivity, and duration of breastfeeding, and to assist amidst any difficul ¬ ties or high - risk situations.
Beyond just the duration of labor, mom's health is at risk during childbirth if she has other nonpregnancy related conditions like obesity, diabetes or high blood pressure.
Ollie improves the quality and duration of sleep for babies (including preemies and high risk), helps baby self - calm, and reduces colic.
Women who breastfeed for a shorter duration or not at all are at higher risk of many diseases, and they experience shorter birth intervals with resulting negative health outcomes.
-LCB- «id»: 54190833, «title»: «Moms whose babies have heart defects may have long - term heart health risks», «duration»: «0:58», «description»: «A new study says moms of babies with heart health issues may have a higher risk of their own heart problems.»
For example, the atlas shows that skin cancer risk is greatest in southwest England even though sunshine duration is highest in southeast England.
These results remained largely unchanged after further sensitivity analyses, prompting the researchers to suggest that giving moderate to higher opioid doses for shorter durations may be a more effective way to manage pain after surgery, while minimising the risk of misuse and addiction.
«Older age at menopause and use of hormone therapy produce increased risk of hearing loss: Unexpected results of new study show higher risk of hearing loss when using oral hormone therapy for longer duration
After reviewing self - reported hearing loss in 80,972 women involved in the Nurses» Health Study II, researchers found that the use of oral HT in postmenopausal women, and for longer durations, was associated with an even higher risk of hearing loss.
However, the authors stress that «further clinical investigations will be essential to establish the optimal dose, duration and safety, and whether vitamin D2 or D3 have different effects on mortality risk, since the available trials are based on elderly populations in general (an age group with high competing risk of death often due to multiple co-existing disease conditions) and they do not typically include cause - specific deaths as the primary outcomes.»
However, Abraham's team found that IBD patients diagnosed at an older age (e.g., 45 instead of 35), those with metabolic syndrome risk factors (diabetes, hypertension, obesity, and high cholesterol), and most importantly, those with longer duration of disease regardless of age at diagnosis, are more likely to develop NAFLD.
Positive predictors for a higher risk of foot ulcerations were previous ulcerations, the male sex, negative results at the monofilament test, missing of at least 1 pedal pulse and a longer duration of T2DM (315).
Carbohydrate intake has been shown to reduce breath - hold durations, due to more rapid CO2 generation (because of a higher RQ) in subjects who had fasted for 18 h, suggesting that that the risk could be reduced by proper carbohydrate intake and that breath - hold diving on an empty stomach may be dangerous.»
Additional knowledge is also needed regarding the mechanisms of benefit and the optimal frequency and duration of fasting in apparently healthy and high - risk individuals.
Screening for maternal health risk factors — including high blood pressure, diabetes, and depression — can help pregnant women get help when they need it most, keeping them and their babies healthy for the pregnancy's duration.
The challenge here is many aren't as confident making duration calls and even less equipped to have risk controls in place for their high yield exposures.
We are watching all of this play out real - time as fixed - income fund flows are broadly shunning sectors with embedded credit and / or duration risks, in favor of freshly attractive, and lower risk, high - carry assets.
For that reason, many looking at carry trading strategies will have to go out over the risk curve and borrow in a cheap major currency in order to buy a higher - yielding emerging market (EM) currency in order to earn a yield beyond that of higher - duration US Treasury bonds (considered safe yield).
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These ETFs, now available for the municipal, corporate and high yield sectors, enable more precise control over duration risk than previous fixed income ETF offerings.
Higher the duration, higher the interest rateHigher the duration, higher the interest ratehigher the interest rate risk.
However, heavy supply and higher duration than the high yield sector are risks, as is rising corporate leverage.
Finally, compared with high - yield corporate bonds, senior loans offer lower duration risk, given the floating - rate nature.
Since 2013, many investors have shunned this bond index, believing the Agg's higher duration or interest rate risk left portfolios exposed to large losses if interest rates shot up.
ProShares High Yield — Interest Rate Hedged ETF (HYHG) is a high yield corporate bond ETF with a built - in hedge that targets a duration of zero to eliminate interest rate rHigh Yield — Interest Rate Hedged ETF (HYHG) is a high yield corporate bond ETF with a built - in hedge that targets a duration of zero to eliminate interest rate rhigh yield corporate bond ETF with a built - in hedge that targets a duration of zero to eliminate interest rate risk.
Because they have a high duration, long - term bonds carry significant interest rate risk.
First Trust AlphaDEX ™ Canadian Dividend Plus ETF (TSX: FDY)(TSX: FDY.A); First Trust AlphaDEX ™ U.S. Dividend Plus ETF (CAD - Hedged)(TSX: FUD)(TSX: FUD.A); First Trust AlphaDEX ™ Emerging Market Dividend ETF (CAD - Hedged)(TSX: FDE)(TSX: FDE.A); First Trust Senior Loan ETF (CAD - Hedged)(TSX: FSL)(TSX: FSL.A); First Trust AlphaDEX ™ European Dividend Index ETF (CAD - Hedged)(TSX: EUR)(TSX: EUR.A); First Trust Short Duration High Yield Bond ETF (TSX: FHY)(TSX: FHY.A); First Trust Global Risk Managed Income Index ETF (TSX: ETP)(TSX: ETP.A); First Trust Tactical Bond Index ETF (TSX: FTB).
These funds are susceptible to interest rate risk as the modified duration of these funds is on the higher side.
I've learnt recently (thanks to Investing Intelligently and Efficient Market Canada) that bond investors should keep fund duration as short as possible because longer - term bonds offer little extra return for taking a higher interest - rate risk.
Usually, yield is higher with these types of bond strategies than with short duration, while interest rate risk is lower than long duration.
Logan Circle's core fixed income products cover the breadth of the maturity and risk spectrums, including short, intermediate and long duration, core / core plus, investment grade credit, high yield and emerging market debt.
This category is also home to portfolios that attempt to minimize volatility by maintaining short or ultra-short duration portfolios, but explicitly court significant credit and foreign bond market risk in order to generate high returns.
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