Sentences with phrase «investment grade»

If they want to diversify away from duration into credit a first step would be to allocate into a corporate investment grade bond product.

Suppose you plan to purchase $ 10,000 worth of investment grade corporate bonds.

Companies with below investment grade ratings offer a higher interest rate to attract investors.

None of the long term problems that the market faces have changed, but neither has the relatively low yields of investment grade corporate debt.

The issues are rated below investment grade by bond rating agencies.

That is a great bull market strategy to make money in investment grade credit, but it is not a high quality strategy.

Normally invests at least 80 % of net assets in a diversified portfolio of investment grade debt securities.

Most long - term investors may benefit from carrying the bulk of their fixed - income exposure in investment grade bonds for the sake of reliable, long - term cash flow.

For investment grade corporate bonds two indices tracking these markets have very different liquidity profiles.

A quick look at the quality of investment grade municipal bonds compared to the corporate bond market can be seen in the graph below.

Next to it I have the yield on investment grade credit.

There is no guarantee all of our properties will be leased to blue chip tenants or companies with investment grade credit ratings.

Income Investing: The idea behind income investing is to provide most or all of your cash flow needs through reliable dividends from stocks and reliable interest from investment grade bonds.

Within this category, the company's fixed income investments are very well diversified, with nearly 93 percent of these rated as investment grade.

These funds invest in issues that have been rated below investment grade by analysts and therefore pay a higher rate of interest.

I'd be curious to see if you still like investment grade fixed incomes, given the rally.

Really, I am scratching my head over all the various risks, and thinking that short - term investment grade credit is the only thing that I like.

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.

Learn about the top five mutual funds that invest in corporate bonds that have investment grade quality and speculative credit ratings.

These include only investment grade bonds with a limit of seven years on maturity.

It will only buy debt securities that are determined by the Manager to be investment grade at the time of purchase.

The company maintains investment grade credit ratings and appears to be carrying a reasonable debt load.

It has a reliable cash flow from multiple sources and investment grade tenants.

This will eventually change, but we need some genuine failures of investment grade companies to demonstrate the real risks of borrowing too much.

So, since I was tired of wondering, I built a chart that better indicates the state of the rental market for investment grade properties.

Moreover, as government bonds have higher investment grade score, the yield rate tends to be low.

The buy and hold strategy is where investors buy bonds with good investment grade score and good interest rates and hold the bonds until the maturity period is reached.

It would be extraordinary for stocks to move ahead at 9 % while low investment grade long bonds yield 3 % less.

But high valuations and a strong rally in 2016 could see some profit taking in the high yield sector, so we generally prefer investment grade bonds.

The story continues for the comparison of performance between investment grade and high yield.

But be aware that floating - rate securities are typically issued by companies with below - investment grade balance sheets.

Investors have put money into investment grade corporate bonds and emerging markets — two sectors that have historically provided above average levels of income compared to other fixed income segments.

This event illustrates how central banks have distorted the credit markets and allowed inferior borrowers access credit at investment grade spreads.

Most of its 55 investment grade issuers are single - A or triple - B credits.

Five - year Canadian investment grade bonds are yielding about 3.5 % on average, and inflation, running at 3.1 %, is taking a big bite out of that.

But what is or is not investment grade is determined by the ratings agencies, who are still using historical models to rate newly issued papers.

The index represents typical duration for the broad investment grade bond market.

Our portfolios are constructed using investment grade fixed income securities, including a proprietary strategy that employs broadly diversified indexed funds.

Higher yields: Most of the debt issued under this category is below investment - grade, thus the securities have higher than comparable investment grade instruments.

Money Market and Short Term Bonds, which comprise cash, checking, savings accounts, term deposits and less than one year investment grade bonds.

Any portfolio that is mandated to only hold investment grade debt or above will no longer be able to hold that bond and the resulting selling may drive down the price of that bond.

As a result, if interest rates rise, investment grade floating rate securities will see the level of interest that they pay rise as soon as the next rate reset date.

All of the preferred stocks that the article cites are financials with marginal investment grade ratings.

In short, long - term investors should carry the majority of their bond exposure in more reliable, income - producing bonds that carry investment grade bond ratings.

Finally, it was a banner year for credit, with spreads narrowing across investment grade, high yield and emerging markets.

Luckily, you can find better yields among investment grade corporate issues.

What do they assume they can earn over long - dated investment grade debt?

Another lesson is that investing for the average investment grade credit quality is good also.