Sentences with phrase «investment grade bonds»

Of course there are many different types of investment grade bonds available for purchase by individual investors.

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

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.

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

This is an intermediate term investment grade bond fund with check writing privileges.

Many investors use investment grade bonds as part of their fixed income portfolios.

This could in part be driven by the demand for investment grade bonds.

In our bond ladder, for example, we inform investors about the returns we are currently able to get while staying shorter than seven years and using only investment grade bonds.

They use a positive momentum strategy on three asset classes — domestic equities, international equities, and high yield bonds, and a buy - and - hold strategy on investment grade bonds.

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.

To mitigate the risk of the company going bankrupt, risk - averse investors will typically purchase high credit - quality investment grade bonds with AAA or AA ratings.

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.

We felt we were not getting compensated for taking risks on lower investment grade bonds, junk bonds, and even commercial mortgages.

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.

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.

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.

These funds are typically composed of investment grade bonds issued by governments and corporations or secured by assets such as home mortgages.

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

Let's also assume that I'm taking the conservative route and investing the money in relatively safe investment grade bonds paying an average annual interest rate of 6 %.

It adopts a Core - Plus investment approach whereby a core portfolio comprised of Australian investment grade bonds is complemented by investments in a diverse range of global and domestic fixed income securities.

40 % of assets in short investment grade bonds.

Hold - n - hope advocates believe that greater gains with stocks over investment grade bonds require nothing more than a commitment to accepting increased volatility.

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

A long duration fund should be composed of a diversified portfolio of investment grade bonds and have a long duration.

The inclusion of lower credit quality investment grade bonds may introduce additional risk for the portfolio.

While the portfolio of high - quality bonds may offer additional return potential, long - term investment grade bonds are subject to substantial interest rate risk.

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.

As you will note, spreads work reasonably to poorly for investment grade bonds.

This index provides exposure to the broad U.S. investment grade bond market.

This is on the high end but, most broad investment grade Bond index funds, such the Vanguard Total Bond Market, will have about 31 % of their assets invested in them.

How could one argue otherwise on the bond side with investment grade bonds yielding only 1.75 %?

This super-low fee fund (0.10 % annual expense ratio) will mirror the performance of the US investment grade bond market.

We prefer U.S. investment grade bonds against this backdrop of reduced compensation for credit risk.

The S&P National AMT - Free Municipal Bond Index tracking investment grade bonds has started 2014 with a positive total return of 2.34 %.

The second lowest cost bond fund is the SCHZ ETF, a Charles Schwab tracking the aggregate investment grade bond universe with a price tag of.10 % per year.

Investment grade bonds contain «AAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decrease.

Investment grade bonds offer income with very low probability of default and reversion to cash at maturity.

My comment on this is as follows: if you have a certain asset allocation between investment grade bond etf and a stock etf and provided that you rebalance once the stock part gets high (high pe), you will tick all Graham's recommendations.

The Barclays US Treasury Bond Index is a market capitalization weighted index that is often used to represent investment grade bonds being traded in the United States.

The highest ratings (AAA to BBB --RRB- are considered investment grade bonds.

IGHG may be more volatile than long - only investment grade bond investment.

Actively managed strategy with broad exposure to European markets through investment grade bonds across sectors and maturities.

The yields on investment grade bonds do not fall as much as yields on Treasury bonds do.

A jump in sovereign yields could spark European credit market outflows, hurting richer investment grade bonds.

According to Bloomberg data on the S&P AMT - Free National Municipal Bond Index, munis returned 3.3 percent in 2015, beating taxable investment grade bonds.

While there has been a spread between investment grade bonds and Illinois G.O.s the muni market kept the yields for these bonds relatively consistent up until now.

With interest rates on high quality investment grade bonds at generationally low levels, retirees and those investing for retirement are looking for ways to increase their income in retirement.