Sentences with phrase «into higher yielding bonds»

Since the mutual fund shareholder has no control over the fund manager the shareholder is at risk of the fund manager realizing bond losses in an attempt to redeploy into higher yielding bonds.
If interest rates rise, these bonds will mature in short order and the investment team will seek to reinvest the Fund's portfolio into higher yielding bonds.
You can easily roll your money into higher yielding bonds quickly if the maturity is shorter.
I think Markel has a pretty asset sensitive balance sheet, meaning that eventually I think higher rates will improve earning power as they reallocate into higher yielding bonds.
And I think that given higher volatility in the markets, going into higher yielding bonds or stocks, the risker ones, is unadvisable.
To the bond portion, we diversified into high yield bonds and cash.
If rates are rising, as one bond matures the funds can be re-invested into higher yield bonds.
And because of that money has flown into high yield bonds and leveraged loans.

Not exact matches

LONDON, May 1 (Reuters)- The dollar broke into positive territory for the year and bond yields were creeping higher again on Tuesday, as the recent rise in oil prices fuelled bets that the U.S. Federal Reserve will flag more interest rate hikes this week.
LONDON, May 1 - The dollar broke into positive territory for the year and bond yields were creeping higher again on Tuesday, as the recent rise in oil prices fuelled bets that the U.S. May Day holidays across Asia and Europe meant trading was thinner than usual, though there was more than enough news flow to keep those...
NEW YORK, May 1 - The dollar broke into positive territory for the year and U.S. bond yields inched higher again on Tuesday as the recent rise in oil prices fueled expectations the Federal Reserve could flag more interest rate hikes at its policy meeting this week.
He started in high - yield bonds and went on during the internet boom to turn a million dollars in patent acquisitions into a portfolio of software intellectual property worth $ 150 million.
The Fed's low interest rate policy has driven more and more money into bond funds as investors search for higher yields.
It puts 25 % into foreign stocks, 25 % into U.S. Treasuries, and 10 % each into commodities, emerging - market currency, bank loans, high - yield bonds, and 5 % each into TIPS and local - currency emerging - market debt.
Exchange - traded funds that track high - yield bond indexes have been the beneficiaries of a cash surge in recent weeks as market participants figure the central bank probably won't raise rates in 2015, and it could be well into 2016 before anything happens.
Euro zone government bond yields jumped on Thursday, kicking recent sharp falls into reverse, and the euro climbed to a six - day high.
One «canary in the coal mine» could be a move further away from high - yield bonds and into investment - grade fixed income.
Cumulative inflows into the iShares Short Maturity Bond ETF (NEAR), Floating Rate Bond ETF, SPDR Bloomberg Barclays Short Term High Yield Bond ETF, PowerShares Senior Loan Portfolio, and the Vanguard Short - Term Corporate Bond ETF topped $ 400 million in total for the first session of the week, the highest since the inception date of the most recent member of this product group.
Investors seek refuge in safer bonds, pulling money out of high yield and putting it into Treasury funds.
«How do high - yield bonds fit into a diversified portfolios?
But cash isn't such a bad thing in a rising rate environment as the yield pick up rather quickly on money market accounts or you can roll some of that over into higher yielding short - term bonds.
I still think there will be a flight to safety in sovereign bonds when stocks have a bear market but other areas such as high yield and corporate debt could run into some problems.
Finally, modestly higher bond yields support our view that the rotation into value and momentum shares away from low - volatility equities likely isn't over.
Banks «earned their way out of debt» by lending to global speculators who used the yen loans to convert into foreign currency and buy higher - yielding assets abroad — capped by Icelandic government bonds paying 15 %, and pocketing the arbitrage difference.
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Rated bonds fall into one of two categories: investment grade or non-investment grade (also known as high yield).
Yet we also see very strong inflows into junk bond funds, based on the belief that these high yields represent value rather than information about default probabilities.
High - yield bonds are usually issued by firms that have an uncertain financial outlook — either they have fallen into deteriorating credit situations, they are emerging growth companies, or they are undergoing corporate restructurings.
All of the allowed claims attributable to the prepetition high yield bonds issued by the Company were converted into new common stock as set forth in the plan of reorganization.
Higher oil prices would reinforce current market trends based on reflation: rising long - term bond yields and a shift out of perceived safer assets — bond proxies and low - volatility stocks — and into cyclical assets such as EM.
I was thinking of dividing into thirds adding the Vanguard High Yield Corp Bond Fund and The Intermediate Term Investment Grade.
As these have a duration of appropriate 2.5 years, won't they roll over into higher yielding gilts / bonds?
While much of the outflows so far have been a result of investors switching out of high yield into safer money - market and government bond funds, Gutteridge believes we have seen the bulk of the selling.
We are also sceptical that holders of high - yield bonds would be motivated to switch into equities, given the pervasive overweight that already exists in this asset class,» he said.
Edelman says that many investors have piled into long - term bonds and high yield debt because they come with higher yields.
Sees money continuing to flow into equities due to their yields being higher than bonds in general..
But I am concerned that late - cycle entrants into risk assets like stocks and high - yield bonds are taking a leap of faith at a time when there is less room for markets to move up and growing risks of them falling back.
In 2015 Creditex expanded into serving the bond market, through the launch of ICE Credit Trade, a leading electronic platform for trading investment grade and high yield corporate bonds.
Currently, BBB - rated bonds are equal to 45 % of the entire outstanding high - yield market, which has increased from 30 % a decade ago.3 Since BBB is the lowest investment - grade bond rating, the risk is that many poor credits will fall, like angels, from the investment - grade into the high - yield universe.
This is why as soon as WeWork, the US shared office space company, said it wanted to issue $ 500 million of high yield bonds, we saw morale perk up and investors dive into the new issuance.
«Bond investors are clearly giving a vote of confidence to the U.S. economy by moving back into corporates - particularly high - yield,» said Joe Clark, managing partner at the Financial Enhancement Group.
NEW YORK The dollar broke into positive territory for the year and U.S. bond yields inched higher again on Tuesday as the recent rise in oil prices fuelled expectations the Federal Reserve could flag more interest rate hikes at its policy meeting this week.
So while low and negative interest rates across the globe has inspired flows into stocks, emerging market bonds and corporate credit in search of higher yields, keep in mind the high correlations of these assets to oil prices and the advantages of holding actual diversifiers in your portfolio to smooth the ride.
For this reason, many retirees have been seeking higher yields with dividend - paying stocks and even moving into high - yield, high - risk corporate bonds.
For example, investors seeking exposure to investment grade bonds know that an index investment grade bond ETF will only hold these bonds, and won't dip into high yield securities.
You could be putting that money into some kind of interest - bearing vehicle, whether it's a 401 (k), CDs, bonds, index funds, or just a «high» yield savings account.
Sure, you can move it into riskier investments like bonds or even high yield bonds to try to juice your returns but a move -LSB-...]
High - yield debt in both the US and international bond ETFs also got a boost after yield - seeking investors moved longer on the yield curve and into riskier debt securities to achieve better returns on their investment capital.
In general, bonds are divided into two broad levels of credit quality — investment grade (IG) and high yield (HY).
Constantly maturing bonds will be rolled into higher - yielding bonds or other investments.
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