Sentences with phrase «higher than the corporate bond»

At that point the 3 % municipal bond has a taxable equivalent yield of 4.62 %, slightly higher than the corporate bond.

Although these bonds offer a lower interest rate than corporate bonds, because of tax - exempt advantages, munis could bring in an after - tax return higher than a corporate bond.

So people who maybe in the past used to own corporate bonds now own dividend stocks, indiscriminately, because the yields there are higher than some corporate bonds.

Not exact matches

Fill the bulk of your portfolio with a combination of high - rated bonds (weighted toward corporate, rather than government, debt) and high - quality, dividend - paying equities, and you likely won't take a hit.

Serge Pepin, the head of BMO Investments, says people should consider corporate or high - yield bonds — also known as junk bonds — which pay higher yields than federal issues.

The SPDR Barclays High Yield Bond fund gathered more than $ 1.1 billion, or about half its total for the year, while the iShares iBoxx $ High Yield Corporate Bond took in $ 603 million, pulling it out of negative territory for the full year.

Traders have pulled more than $ 1.8 billion from two junk - focused ETFs just in the past week: the iShares iBoxx $ High Yield Corporate Bond -LRB-- $ 1.06 billion, most of any ETF) and the SPDR Barclays High Yield Bond -LRB--765.4 million, the second most), while also redeeming $ 577.4 million (the fourth most) from the iShares iBoxx Investment Grade Bond ETF, according to FactSet and ETF.com.

Some 5.7 % of corporate junk bonds from emerging markets are trading at prices below 70 cents on the dollar, more than double the rate for higher - risk U.S. bonds, according to JPMorgan.

Stocks are being retired by corporate raiders in exchange for high - interest («junk») bonds, and by corporations using their earnings to buy their own stocks rather than to make new direct investments.

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.

On average, high - quality corporate bonds currently have yields that are at least one percentage point higher than Treasury bonds.

Investors are hungry for high quality, multibillion - dollar debt deals, as shown by Anheuser - Busch InBev Finance Inc. of Belgium's success with two corporate bonds totaling more than $ 60 billion in 2016.

In addition, short interest as a percentage of shares outstanding in the $ 31.5 billion iShares iBoxx $ Investment Grade Corporate Bond ETF stood at more than 8 % as of last week, the highest since 2010.

For example, one source found that, on average, high - yield corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares each high - yield corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares each High Yield Corporate Bond ETF (HYG) trades millions of shares Corporate Bond ETF (HYG) trades millions of shares each day.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

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.

In that instance, the earliest warnings were from weakness in utilities and corporate bonds, but the percentage of stocks above their own 200 - day averages didn't fall below 60 % until the market itself was already down nearly 10 % from its high; less than two weeks before the crash.

This is a lot higher than the average savings account or riskier corporate bond yields.

Roughly half of the ETFs have a higher correlation to treasury bonds and the other half to the S&P 500 Index (i.e., CWB — convertible bonds, JNK — high yield corporate, PFF — preferred stock and XLU — utilities all react to interest rates but are more correlated to the stock market than to treasury bonds).

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.

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.

We sold into it, doing a massive up - in - credit trade that left the portfolio higher quality than it was prior to 9/11, and giving us room for the upset that would happen as Worldcom went down, and the corporate bond markets doing a double dip in late July and early October.

In corporate bonds, high yields often signal danger rather than a bargain.

While high quality ratings often imply lower yields, the S&P International Corporate Bond Index has a weighted average yield - to - worst of 2.16 %, which is higher than the average yields of U.S. treasuries and comparable to the 2.26 % yield of the S&P 500 AAA Investment Corporate Bond Index.

Yields are also higher for the S&P U.S. Issued High Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate dHigh Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporCorporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate dhigh - yield corporatecorporate debt.

«RAFI corporate bond strategies will tend to have higher credit ratings than their market - weighted counterparts,» the website confirms.

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 yield bonds.

If an investor is in this bracket, muni bonds offer a much higher tax - equivalent yield than corporate bonds, 3.5 % compared to 2.8 %.

In this example, corporate bonds are yielding 2.8 %, which on the surface is much higher than national munis.

Corporate bonds are popular income investing assets because they typically pay higher yields than government securities, although they also carry correspondingly higher risk.

However, looking at it from the perspective of Taxable Equivalent Yield (TEY) municipal bonds are currently at higher yields than their corporate bond equivalents.

The debt portfolio of the fund consists of high quality corporate bonds and G - secs with more than 80 % investment in AAA rated securities and rest in AA rated.

You will also find higher coupon rates on corporate bonds than on U.S. treasury bonds with comparable maturities.

@Mike: «From what I've seen, corporate bonds (which are included in TBM) tend to have a higher correlation to the stock market than Treasuries do, thereby making them somewhat less effective as a diversifier.»

We love high yield corporate bonds; they pay a lot more interest than treasuries and also because these are not the greatest borrowers — I'm not talking little companies; think CitiBank and other very big companies that don't have a pristine credit rating — they can not lend money out very long so the maturities of our high yield bond fund is closer in.

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).

the relationship between interest rates and time, determined by plotting the yields of all or as many bonds of similar credit quality (eg: Treasuries or AA - rated Corporates), against their maturities; yield curves typically slope upward since longer maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed - income product types and credit qualities; these are based on bonds that Fidelity recognizes and are not equal to the entire universe of bonds, which is significantly larger than the number of bonds offered by Fidelity on any given day

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

These bonds are already in the S&P U.S. Issued High Yield Corporate Bond Index because of their Moody's rating of Ba1 and account for less than 1 % of the index's market value.

The Fund's high - yield bond holdings have historically produced higher income and lower correlation to interest - rate movements than higher - quality corporate bonds.

For instance, corporate bonds can pose higher risk than municipal and Treasury bonds.

For example, one source found that, on average, high - yield corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares each high - yield corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares each High Yield Corporate Bond ETF (HYG) trades millions of shares Corporate Bond ETF (HYG) trades millions of shares each day.

A diversified corporate bond portfolio might get a higher return of 5 - 7 % and with lower risk than stocks, but you can still lose money, and we haven't talked about taxes yet.

Bond funds that invest in U.S. Treasuries, corporate bonds, mortgage - backed securities, municipal bonds and other debt securities pay monthly dividends, usually at a higher rate of return than money market mutual funds.

The 30 - Year Safe Withdrawal Rate with stocks and corporate bonds is higher than 5 % (plus inflation) provided that you vary allocations with valuations.

With a yield over 7 %, the S&P U.S. Preferred Stock Index reflects a yield of over 120bps higher than U.S. high yield bonds as tracked by the S&P U.S. Issued High Yield Corporate Bond Inhigh yield bonds as tracked by the S&P U.S. Issued High Yield Corporate Bond InHigh Yield Corporate Bond Index.

The same principle is true for Cincinnati Financial's bond portfolio, where no corporate exposure is higher than 0.7 % of the total bond portfolio.

In other words, it's not clear that this fund is a better or worse diversifier than a high - yield corporate bond fund for a typical U.S. investor.

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 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 portfolbond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolios.

Corporate bonds pay a higher interest rates (or «coupon») so these bonds are repaid quicker than government bonds, which pay a lower interest rate.