Sentences with phrase «in junk bond yields»

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

Not exact matches

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

The sell off in the market for high yield debt, or junk bonds, is now hitting a type of structured bond that is similar to the the type that blew up in the financial crisis.

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

Investors increasing their current yield by taking credit risk in junk bonds have recently learned a similar lesson.

The company's lone outstanding junk bond, worth $ 1.8 billion and maturing in 2025, briefly dropped two points to as low as 85 cents on the dollar for a yield of around 8 percent on Monday, according to MarketAxess data.

Four of the top 10 funds in terms of inflows from Oct. 7 - 13 came from the bond sector, and two of them were focused on high - yield, or junk.

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

Fixed income, rising (or falling) yields, junk bonds, Fed tightening, TIPS, spreads, mortgage - backed securities — there's no shortage of jargon for this supposedly «boring» investment that most of us own in our portfolios.

Junk - bond ETFs rallied on Wednesday, as markets breathed relief that the «fiscal cliff» is no longer a concern and as a result, bond yields are under 6 percent for the first time ever, and junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF TreJunk - bond ETFs rallied on Wednesday, as markets breathed relief that the «fiscal cliff» is no longer a concern and as a result, bond yields are under 6 percent for the first time ever, and junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Trejunk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Trends.

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.

High - yield bonds — which some started calling «junk» in the 1970s — were often part of the mix, but rarely the entire story.

The risk in higher yielding junk bonds first and foremost is derived from fact that any company paying north of 5 % to issue debt has a high probability of never paying back the investors who by the debt.

When I was a junk bond trader in the 1990s» we referred to anyone who bought a bond yielding over 12 % as «a yield hog.»

When I was a junk bond trader in the 1990's, high yield money would be pulled from the market abruptly and quickly, usually about a week before the stock market would undergo a big sell - off.

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.

For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.

Further out in the credit quality spectrum, U.S. - based high - yield «junk» bond funds

Junk bonds, for instance, are producing a less than pulse - quickening yield of 6 % which, adjusted for defaults (likely to explode during the next recession), isn't worth the risk — save in a few special situations.

As Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period, junk bond yields rated CCC or below have declined 1.5 percentage points as the bonds have rallied.»

Although there have been many ups and downs in this extended rate cycle, junk bonds and the portfolio managers who buy and sell them have never experienced a rise from these yield levels before.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

Readers have no doubt noticed that numerous inter-market correlations seem to have been suspended lately, and that many things are happening that superficially seem to make little sense (e.g. falling junk bond yields while defaults are surging; the yen rising since the BoJ adopted negative rates; stocks rising amid a persistent decline in earnings growth; bonds, gold and stocks moving in unison, etc., etc.).

Meanwhile, Bloomberg reports that pension funds, squeezed for sources of safe return, have been abandoning their investment grade policies to invest in higher yielding junk bonds.

On the subject of junk debt, in the first two quarters of 2014, European high yield bond issuance outstripped U.S. issuance for the first time in history, with 77 % of the total represented by Greece, Ireland, Italy, Portugal, and Spain.

There are various ways to participate in the Junk Bond rally that is just underway - from purchasing individual corporate bonds to diversifying risk with double - digit yielding Bond ETFs, Mutual Funds and individual corporate paper.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

According to Bloomberg analysis, junk bonds showed cracks last week, suggesting a more serious algorithmic spasm in equity markets could infect high - yield bonds.

This risk is higher when investing in high yield bonds, also known as junk bonds, which have lower ratings and are subject to greater volatility.

High - yield bonds (also known as «junk bonds») may be subject to greater levels of interest rate, credit, and liquidity risk than investments in higher rated securities.

This High - Yield Stock Deserves a Look In the bond market, the highest yielders are usually considered junk bonds.

As time passed, the number of funds increased as they began to specialize in certain types of investments: foreign - country bonds, high - tech stocks, high - yield (junk) bonds, and so forth.

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.

Starting in 2008 and into 2009, high yield corporate bonds (otherwise known as junk bonds) saw huge drops in price under the premise the America was going to see a massive wave of corporate defaults, the likes of which we hadn't seen since the Great Depression.

We are even less enthusiastic about high yield ETF investments in high - yield («junk») corporate bonds.

Investors who might consider P2P useful could be those already including high yield (junk) bonds in their portfolio.

The structural issue at work encouraging the deal - making is that cash flow yields are markedly above junk bond yields, similar to the environment during the late «80s when the market in junk bonds flourished.

For that matter, your bond holdings could also have been more risky than the broad bond market, which could be the case if you invested heavily in high - yield, or junk, bonds, which lost more than 25 %.

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.

The junk or high yield bond markets in the U.S. have seen diverse returns so far in 2015.

Fixed income, rising (or falling) yields, junk bonds, Fed tightening, TIPS, spreads, mortgage - backed securities — there's no shortage of jargon for this supposedly «boring» investment that most of us own in our portfolios.

High yield municipal bonds tracked in the S&P Municipal Bond High Yield Index have continued to outperform their corporate junk bond counterparts by returning 9.67 % year to yield municipal bonds tracked in the S&P Municipal Bond High Yield Index have continued to outperform their corporate junk bond counterparts by returning 9.67 % year to dBond High Yield Index have continued to outperform their corporate junk bond counterparts by returning 9.67 % year to Yield Index have continued to outperform their corporate junk bond counterparts by returning 9.67 % year to dbond counterparts by returning 9.67 % year to date.

Similarly, some high - yield bond funds may also be too risky if they invest in low - rated or junk bonds to generate higher returns.

Some of the bonds that come due in the next 12 months were trading at prices that offered hearty investors a 25 % to 35 % yield, one junk bond manager told us.

This specifically leaves out things like high yield corporate (junk) bonds and similar higher risk bonds for reasons described in Article 7.2.

Reach for yield in junk bonds and take on default risk?

I invest that middle - term money in a mix of junk high yield bond funds and «high» yield savings accounts at an online bank.

Guggenheim Investments currently offers 14 of these funds, 8 of which invest in investment grade bonds, 6 of which invest in high yield or «junk» bonds.

The fund may invest up to 100 % of its managed assets in below - investment grade debt securities (commonly referred to as «high - yield» or «junk» bonds).