Sentences with phrase «higher than investment grade bonds»

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.

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

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.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

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

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.

These bonds are considered risky investments and tend to pay higher interest rates than Investment grade debt.

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).

This is a market - based estimate of the amount of fear in the bond market Bass - rated bonds are the lowest quality bonds that are considered investment - grade, rather than high - yield.

It's also interesting to examine the changing significance and dynamics of the European bond market in general, which has almost doubled in size since 2005 to more than $ 10 trillion today, including government, investment - grade corporate debt and high yield.

Income potential is higher than investment - grade bonds to offset the high level of default risk.

High Yield bonds involved greater risk of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments.

They are riskier than bonds issued by higher rated investment - grade companies, so they often offer higher yields.

Issuance of investment - grade corporate bonds picked up in early March in a receptive market, as investors sought higher yields than were available on safe - haven Treasury bonds.

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

The main danger of a junk bond fund is that there will be a higher rate of bankruptcy / default than in an investment grade bond fund.

Earnings yields are higher than bond yields, particularly among many investment grade companies, fostering buybacks and occasional LBOs.

They are riskier than bonds issued by higher rated investment - grade companies, so they often offer higher yields.

A speculative - grade bond has a rating of lower than Baa, an investment - grade bond has a rating of Baa or higher.

That gives it substantially more credit risk than investment - grade bond funds, but the high - yield short positions moderate some of that risk.

Investment grade corporate bonds typically offer better return potential than Treasury bonds, and investment grade debt allows investors to pursue those returns without adding as much risk as high yiInvestment grade corporate bonds typically offer better return potential than Treasury bonds, and investment grade debt allows investors to pursue those returns without adding as much risk as high yiinvestment grade debt allows investors to pursue those returns without adding as much risk as high yield bonds.

High yield bonds are more volatile than investment grade securities, and they involve a greater risk of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature.

But I'd be wary of venturing, as some investors seeking higher yields do, into high - yield, or junk, bond funds, as they're generally more volatile than investment - grade funds and don't hold up as well in periods of economic and market stress.

High - yield bonds, also referred to as «junk bonds,» offer higher rates of return, and therefore carry a higher rate of risk, than investment grade bonds.

High yield bonds typically offer better return potential than Treasurys or investment grade bonds as a way of compensating investors for taking on greater risks.

Junk bonds carry higher default risk and are thus far more sensitive to the health of the economy than investment - grade bonds.

Consequently, high - yield bonds are rated lower than investment grade bonds.

As these bonds are riskier than investment grade bonds, investors expect to earn a higher yield.

Income potential is higher than investment - grade bonds to offset the high level of default risk.

Rather than pursue cross-over corporates or high - yield or even long - term investment grade corporates, we have stayed near the middle of the curve with funds like: (1) SPDR Nuveen Muni (TFI), (2) Vanguard Total Bond (BND), (3) iShares 7 - 10 Year Treasury (IEF) and (4) iShares 3 - 7 Year Treasury (IEI).

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

High - yield, non-investment-grade bonds involve higher risk than those that invest in investment - grade bonds.

IGHG and HYHG may be more volatile than a long - only investment in investment grade or high yield bonds.

High yield bonds are more volatile than investment grade securities, and they involve a greater risks of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature.

With a «BBB» investment grade score and higher rates, this bond is very unlikely to make any sort of huge losses during its maturity period despite its lower rating than the two bonds mentioned above.

High yield, lower rated bonds involve a greater degree of risk than investment grade bonds in return for higher yield potential.

The Fund's investments in high - yield securities or «junk bonds» are subject to a greater risk of loss of income and principal than higher grade debt securities.

With a portfolio composed of investment - grade debt from corporate, sovereign and supranational issuers with three - year maximum maturities, the iShares 1 - 3 Year Credit Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield than comparable all - Treasury funds, but it does have a marginally higher credit risk.

Investments in high - yield bonds offer different rewards and risks than investing in investment - grade securities, including higher volatility, greater credit risk, and the more speculative nature of the issuer.

The structure levers up investment grade credit fifteen times, allowing the purchaser to buy a bond with a coupon two percent (or so) higher than Treasuries, with a AAA rating.

In 2016, more than a net $ 6.4 billion had flowed into high - yield mutual funds through the end of August, sending the sector higher by nearly 15 % YTD, compared to an approximately 7 % return for the S&P 500 and 4 % for investment - grade bonds over the same period.

Income, Yield and Duration: Investment grade municipal bonds on average have a higher coupon cash flow to bondholders than corporate bonds and that cash flow is exempt from federal taxation.

A junk bond or high - yield bond is a bond rated at «speculative» grade or at «less than investment grade,» likely BB or lower.

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).

The holdings of emerging market bond funds typically range from relatively low risk BB + bonds (one notch lower than investment grade) to high - risk C issues.

As these are revenue bonds with slightly longer durations the average yield is naturally higher than the overall market, Year - to - date this group of bonds have outperformed the investment grade muni market.

Corporate bonds with low credit ratings are called high - yield bonds, because they have higher yields than investment grade bonds.

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.

In recessions, high - yield bonds typically lose more principal value than investment - grade bonds.

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