By «investment grade» we mean that we intend to invest in properties leased to blue chip tenants and / or companies
with investment grade credit ratings.
The search for yield has put a spotlight on the higher yielding credits like senior loans and high yield bonds but what
about investment grade credits?
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.
US and CAD
investment grade credit spreads, the difference in yield between corporates and Canadas, tightened by.3 % and US high yield bonds tightened by 1 %.
However, its current ratio (short - term assets / short - term liabilities) is still safely above 1, and its interest coverage ratio is strong enough to give it a
solid investment grade credit rating.
Senior Loans typically are of below investment grade quality and have
below investment grade credit ratings, which ratings are associated with securities having high risk, speculative characteristics (sometimes referred to as «junk»).
For instance, a rising price ratio for iShares 7 - 10 Year Treasury (IEF): iShares iBoxx High Yield Corporate Bond (HYG) is indicative of a preference for risk - off
investment grade credit over speculative higher yielding credit.
He previously managed U.S. high yield and
investment grade credit portfolios at both CQS in London and Barclays Global Investors / BlackRock in San Francisco, and worked as a credit analyst at Pacific Investment Management Company (PIMCO) in Newport Beach.
Bloomberg Gadfly's Lisa Abramowicz (follow her on twitter here) outlined in a recent piece The Credit Boom that Just Won't Die the insatiable demand
for investment grade credit.
We are pleased that the «negative outlook» was removed returning our rating to a stable condition, and that we remain in Moody's strong
investment grade credit category.
For the bulk of our client base of near - retirees and retirees, we are maintaining our 55 % -60 % allocation to equities, 20 % -25 % allocation to high -
quality investment grade credit and 15 % -25 % cash equivalents.
Corporate bond exposure is
predominantly investment grade credit risk; however, there is a portion that is below investment grade, some as a result of downgrade activity post-purchase by the insurance companies, while others due to active purchases.
CPDOs are designed to generate higher coupons by taking leveraged exposure to
investment grade credit derivative indexes, and the leverage can be raised or lowered according to market moves to protect against losses.
Performance of IGHG could be particularly poor
if investment grade credit deteriorates at the same time that Treasury interest rates fall.
Kyle is a Vice President of SSGA and a Portfolio Manager in the Fixed Income Beta Solutions group where he manages high yield and
investment grade credit ETFs and separate accounts.
• We encourage the Agencies not to undermine the structure of
investment grade credit facilities and bank loan syndications by imposing a collateralized HVADC requirement on these unsecured lines.
Despite maintaining just $ 14 million in cash on hand compared to about $ 2 billion of debt, National Retail
maintains investment grade credit ratings from the major agencies and has a $ 650 million unsecured bank credit line it can tap.
Product offerings include Investment Grade Corporate, Broad Corporate (up to 30 % exposure to
below investment grade credit) and Corporate Value (no restrictions by credit rating).
In retail, the most sought - out properties are those retailers
with investment grade credit ratings — those with a Standard & Poor's rating of BBB or higher.
That explains why TJX has a very
strong investment grade credit rating that allows it to borrow at an average interest rate of just 2.9 % (only 0.4 % higher than a 10 - year US Treasury).
Source: FactSet Research Systems Inc., Russell Investment Group, and Heartland Advisors, Inc. * Weighted average ** Weighted average, and Dun & Bradstreet is excluded because its open market stock repurchases have made the company's total equity negative, resulting in an excessively high debt ratio that is not reflective of D&B's
investment grade credit rating based on Heartland Advisors» beliefs
TIM under Genish has said its main objective is to strengthen the firm's finances and operations and reclaim
an investment grade credit rating, and that potential asset disposals could help to undermine that goal.
Air Canada will consider instituting a dividend as it gets closer to achieving
an investment grade credit rating by the end of 2020, said Rousseau.
Adding too much more could threaten
its investment grade credit rating, increasing its cost of borrowing.
Kingsland Capital Management is a privately - owned investment manager specializing in below -
investment grade credit - based strategies.
Our expertise in below -
investment grade credit has been tested over a range of market conditions.
And over the past five years, MBS offered a higher Sharpe ratio, a measure of risk - adjusted returns, than both Treasuries and
investment grade credit.
Phrases with «investment grade credit»