Sentences with phrase «into investment grade»

As, you just never plain know when «consumer grade» will veer over into investment grade, truly.
Let's say your target asset allocation (see my previous article on asset allocation) calls for 30 % of your $ 100,000 portfolio to be invested into investment grade bonds ($ 30,000).
You may also put money into investment grade gold and silver bullion, coins, and certificates.
Underneath the S&P 500 Bond Index are two subindices, as the debt in the index is divided into investment grade and high yield.

Not exact matches

With other big acquisition funding still in the pipeline, it was crucial for banks to set a positive tone for investment - grade debt and lure buyers back into a struggling market.
And bankers are already talking about cutting up the deal into some high yield and some investment grade debt.
Ratings agency Moody's reported Monday that the rolls of «potential fallen angels,» or issuers with investment - grade debt currently in danger of becoming junk, swelled by 17 in the third quarter, while no companies fell into the opposite category, called «potential rising stars.»
By contrast, many investors are moving into diversified investment - grade fixed products, such as the IShares Core U.S. Aggregate Bond ETF (AGG), which has had net inflows of $ 435 million this quarter and $ 2.2 billion of net inflows year - to - date.
One «canary in the coal mine» could be a move further away from high - yield bonds and into investment - grade fixed income.
I'm about 50 % in real estate — mostly direct investment in value - add multifamily whereby I own small percentages, in the form of LP interests, in C + / B - grade apartment complexes which will be slowly transformed into B +.
When bonds yield 1.75 % for investment - grade bonds, then it's difficult to turn that into a 5 % -10 % return going forward... If he wants to argue against that, and talk about Dow 5000 and bear and bull markets, then he's welcome to, but he's pushing at windmills in my opinion, and he belongs back in his ivory tower.
To put this into perspective, no US State has ever been rated below investment grade.
When bonds yield 1.75 % for investment - grade bonds, then it's difficult to turn that into a 5 - 10 % return going forward.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to rise in Feb: HW Corp bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury yield reaches 3.0 % for first time since 2014: CNN Money
Rated bonds fall into one of two categories: investment grade or non-investment grade (also known as high yield).
The next day, George put 50 percent of the money into an S&P 500 fund, while Karen placed the other half into short - term, investment grade municipal bonds.
Although the largesse is restricted to blue - chip eurozone companies such as food producer Danone or telecoms giant Telefónica, ECB - injected liquidity has spilled into the rest of the market, paring average interest rates on investment - grade corporate debt by some 30 basis points to an even 1 %, Deloitte estimates.
Meanwhile, US investment - grade bonds have come somewhat into vogue among European and Asian investors seeking exposure to the seemingly unstoppable dollar and respite from their own fragile economies, Deutsche Bank reports.
The big takeaway for those seeking to buy into market weakness: Be wary of buying notionally cheap assets that face challenges (e.g. domestically - focused European assets like U.K. real estate and European banks), and instead focus on assets with relatively attractive valuations and positive fundamental drivers, such as quality stocks, dividend - growth stocks and investment - grade bonds.
At its peak, Teck had more than $ 7 billion in debt outstanding, which caused its leverage ratio to rise, resulting in the company not only losing its investment - grade credit rating but getting downgraded deep into junk territory.
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.
EM debt in USD can be divided into debt from investment grade (IG) countries and debt from high yielding (HY) countries.
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.
«The problem with using grade school math to analyze an economic development project of this magnitude is that it doesn't take into account the multi-billion dollar investment from SolarCity, and impact of the thousands of direct and indirect jobs that will be created statewide,» said Jason Conwall from Empire State Development.
Note that if the total amount of the RRIF direct loan or loan guarantee is greater than $ 75 million, the applicant must provide an investment grade rating on the RRIF credit instrument from at least two Credit Rating Agencies for the DOT to incorporate such ratings into its calculation of the CRP (45 U.S.C. § 822 (f)(3)(C)-RRB-.
In general, bonds are divided into two broad levels of credit quality — investment grade (IG) and high yield (HY).
Adding a high quality, 100 % investment grade, sleeve such as the S&P U.S. High Quality Preferred Stock Index, into a preferred portfolio can improve portfolio credit quality which may mitigate the impact of a market sell off.
Without going into too much detail of statistics and standard deviation, I can tell you that there is a lot of research evidencing less than a 0.5 % default rate for investment grade municipal bonds for the last few decades.
In response to the most recent events, the Under Armour bond has been downgraded to BB + and will be moved out of the investment - grade index and into the S&P 500 High Yield Corporate Bond Index at the next month - end rebalancing (February 2017), as per the index rules.
Some optimists have been suggesting that the unusually strong correlation between stocks and investment grade bonds since February may persist for many months into the future.
We believe the fixed income universe is extremely diverse — it can be broadly classified into four key asset classes, namely sovereign, investment grade credit, sub-investment grade credit and cash, each with its underlying sectors.
So if a company is drowning in debt and has little capacity to pay it back, its bonds will get a junk rating and they won't make into indexes that hold only investment - grade issues.
The big takeaway for those seeking to buy into market weakness: Be wary of buying notionally cheap assets that face challenges (e.g. domestically - focused European assets like U.K. real estate and European banks), and instead focus on assets with relatively attractive valuations and positive fundamental drivers, such as quality stocks, dividend - growth stocks and investment - grade bonds.
To a lesser extent, it has also gone into high - yield mutual funds that buy bonds rated below investment grade, known as junk bonds to those who are dubious of them.»
And in this search for higher yields, we find investors are reaching deeper and deeper into lower - grade fixed - income products, which come with significant credit and interest rate risks,» says Som Seif, president and CEO of Purpose Investments, through a statement.
The index has been broken down into respective subindices (the S&P Canada Aggregate Bond Index and S&P Canada High Yield Corporate Bond Index) that match the different money management styles between the high - yield and investment - grade categories.
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.
Moving into the below investment grade category of BB + and below municipal bonds are still outpacing their corporate counterparts.
We can invest in just about any part of the global bond market but most of it is in credit so we subdivide the market into corporate credit and below investment grade corporate credit, emerging market debt.
They can also reduce their exposure to bank failure by diversifying out of bank deposits into stocks and investment grade corporate bonds or a broad bond index through use of low fee exchange traded funds.
For the previous week, Lipper data reported positive flows into investment - grade corporate bonds (June 3, 2015), which appeared to be buying on the dip, as the index moved from a Read more -LSB-...]
We subdivide the fixed - income market into Treasury bonds, mortgage - backed securities, investment - grade corporate bonds, below - investment - grade corporate bonds, bank loans, commercial mortgage - backed securities, developed - market bonds and emerging market bonds.
If you feel you need a bit more protection against rising rates, you can put a portion of your bond stash into a short - term investment - grade bond fund.
For the previous week, Lipper data reported positive flows into investment - grade corporate bonds (June 3, 2015), which appeared to be buying on the dip, as the index moved from a yield of 2.89 % on May 29, 2015, to the June 3, 2015, level of 3.10 %.
When we devised our list of favorite funds, we didn't take minimum investments into consideration (although we don't consider institutional grade funds we use with clients that may have minimums of $ 25,000 to $ 1,000,000 or more).
I put 40 % of my congregation's building fund into high yield and low investment grade debt in late 2008 — made up for a lot of 2008 losses.
Therefore, Cerulli says, within the context of high - quality fixed - income portfolios, insurers will «generally try to add credit risk on the margin, taking advantage of an individual credit falling a notch or two either within the investment - grade universe, or into the upper reaches of high - yield / non-investment-grade spectrum.»
Suppose you own a corporate bond rated BBB (lower - investment - grade quality) that is yielding 7.00 % and you find a triple - A-rated (higher - investment - grade quality) corporate bond that is yielding 6.70 %.1 You could swap into the superior - credit, triple - A-rated bond by sacrificing only 30 basis points (one basis point is 1 / 100th of one percent, or.01 %).
We have begun edging back into junk bonds and low investment grade corporates.»
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