Institutional bond investors have no lack of research sources to guide them.
If followed, and this has been followed by many
institutional bond investors, this would result in falling long - term yields, particularly now when economic growth is weak globally.
Institutional bond investors often use the indexes as a benchmark against which to measure their performance.
The idea that some big
institutional bond investors aren't market - efficient is simply not true.
I'll give you one practical upshot for now, if you are
an institutional bond investor: go long 10 - year Treasuries and short 7 - year.
For example, a large
institutional bond investor may use the Industrial Bond Average as a benchmark against which to measure his or her performance in the bond market.
Not exact matches
That climb got its start with financing through the offering from individual and
institutional investors and
bond investors, which in large deals like Trump's were typically pension funds and insurance companies.
Institutional investors (such as pension funds) routinely insist on holding only highly - rated securities, so a downgrade can force them to sell that issuer's
bonds.
BRVM aims to attract more
institutional investors including pension funds to increase investment in its
bond market and lessen its dependence on bank liquidity.
That's dangerous for pension funds and other large
institutional investors across the world, which have been loading up on
bonds, and longer - term
bonds to boot.
Still, corporate
bond spreads have come up to around their historical average, providing impetus for
institutional investors trying to claw out yield any way they can, even if it means an extraordinarily long - term commitment.
Bond ETFs can add value to a portfolio, whether you are an individual
investor, financial advisor or
institutional...
As an experienced partner of
institutional investors and financial service providers, oekom research identifies those equity and
bond issuers whose businesses exercise a high level of responsibility towards society and the environment.
A recent survey of
institutional investors in Australia found that exposure to credit risk had increased in the first half of 1999 and that about half of the respondents intended to take on additional credit risk in their
bond portfolios over the remainder of 1999.
Fidelity also owns a quota of $ 1.2 billion under the Qualified Foreign
Institutional Investor (QFII) scheme, which allows foreign institutions to buy Chinese stocks and
bonds.
About half of
institutional investors could already accept
bonds rated below A - in their portfolios.
Sustainable investing may have been dominated by stocks in the past, but that may be changing as the green
bond market continues to become more attractive to both retail and
institutional investors.
The fact that
investors bought both demonstrates the extent to which
institutional bond buyers have accepted social and environmentally responsible behavior by corporates as actions which should be funded.
A downgrade in the credit rating of a
bond by the credit agencies can affect
bond performance as well if
institutional investors are forced to sell because of restrictions on the credit quality of the
bonds they're able to hold.
This makes
bonds a relatively heterogeneous asset class in which many securities are thinly traded.3 At the same time,
institutional investors often hold assets to maturity and, when they do trade, do so in large amounts.
One reason is that large
institutional investors are increasingly using ETFs instead of individual
bonds, and a recent survey gives us comfort that further adoption will persist.
The relative lack of liquidity in the
bond market and the fact that it is oriented for
institutional investors rather than retail
investors means that you really want to know where a
bond has been trading before agreeing to buy or sell at a given price (be careful not to get ripped off).
The
bond market is chiefly set up for
institutional investors who trade $ 1 million or more in face amount of
bonds at a time and retail
investors have largely been left to do as best they can.
He also believes higher - yielding emerging - market
bonds are attractive to
institutional investors, given very low
bond yields in developed markets.
In Australia, this has been evidenced by
institutional investors having greater - than - index weight exposure to non-government
bonds.
The eventual downgrade to junk, aka non-investment grade, will make IL debt ineligible for investment for some of their major
institutional investors (one of which has already called for a boycott of Illinois debt) which are restricted by mandate to purchase only investment grade muni
bonds.
Any
investor, private or
institutional, should be aware of the diverse types and calculations of
bond yields before an actual investment.
Junk
bonds can be an attractive option for private and
institutional investors chasing returns.
In recent months, this «use for cash» story has been playing out strongly in the ETF space, as retail and
institutional investors pour assets into ultra-short-dated
bond funds.
Federal Reserve Financial Accounts data shows that 94 % of the Treasury market and 83 % of the corporate
bond market is made of
institutional investors.
Several important
institutional investors (with BRL 1.8 tn AUM) have signed the «Brazil Green
Bonds Statement», an initiative of the Climate
Bonds Initiative (CBI), Principles for Responsible Investment (PRI) and SITAWI Finance for Good.
Evidenced by a range of indicators such as; oversubscription, upsizing, as well as public commitments, green
bond mandates and statements of expectation from
investor groups, green
bonds are also being used to successfully tap into the vast capital pool of
institutional investors globally (US$ 88 trillion).
Custom creation of ETFs is a process by which
investors — mostly
institutional — convert their individual
bond holdings into units of exchange traded funds to potentially improve liquidity, reduce trading costs and / or save time.
To this end, iShares Canada has seen the dollar amount of custom creations — a process by which
institutional investors convert their individual
bond holdings into units of ETFs — double in the past year to over $ 1 billion through June, according to BlackRock data.
Those increases have drawn the notice of
institutional investors, such as pension funds and insurance companies, which have turned to real estate as low interest rates have reduced returns from other steady investments, such as
bonds.
I am back in New York this week for one of my favorite events of the year, iShares Fixed Income Leaders Circle, a conference that BlackRock hosts for
institutional investors who use
bond exchange - traded funds (ETFs).
Institutional investors have, at their disposal, sophisticated trading desks, analysts and technology platforms for trading
bonds.
To act with the scale of ambition required, the independent Early Intervention Foundation will work with the city to issue
bonds: # 100 million in the first instance, with larger offers to
institutional investors to follow.
«Some hedge fund and other
institutional investors» reaction to the crisis suggests they will seek to impose draconian terms and conditions on Puerto Rico's
bond issuing entities,» Trustees said in the letter.
Using green
bonds and modified insurance portfolios If the top financial layer includes big
institutional investors and banks, then a second tier of untapped finance lies with insurance companies extending policies to the most vulnerable populations in the developing world.
The advisor to the Great Lakes
Bond Fund has closed the fund's
Investor Class (GLBDX) and converted the former
Investor accounts into
Institutional Class (GLBNX) ones.
This is because large
institutional investors will often pick up millions of dollars of such
bonds, so the extra decimal places will matter to them.
Federal Reserve Financial Accounts data shows that 94 % of the Treasury market and 83 % of the corporate
bond market is made of
institutional investors.
«The
institutional interest we see in commodities is driven much more by the desire for diversification than it is by the view that tactically commodity prices will go up in the short term,» said Bob Greer, real return product manager at America's giant
bond investor PIMCO, which manages over $ 14 billion in commodity - linked strategies.
There is a significant number of questions every
investor, private or
institutional, should consider before investing in
bonds.
Individual and
institutional investors alike have gradually moved enormous sums from riskier investments like stocks into safer fixed - income investments like
bonds and GICs.
For what it is worth, the same ideas apply to convertible preferred stock, except that is bought primarily by individuals, while the
bonds are bought by
institutional investors.
When a state or local government raises capital through debt they issue municipal
bonds to be sold to individual and
institutional investors.
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Investor brochure In - whole call IOC IPO Issue Issuer
As a large
institutional investor, we're able to purchase
bonds at prices generally lower than what is available to the average individual
investor and then pass on the savings to our shareholders.