Sentences with phrase «investments than corporate bonds»

Municipal bonds are considered safer, low - risk investments than corporate bonds, since a municipal government is much less likely to go bankrupt than a corporation.

That's why municipal bonds are generally considered much safer investments than corporate bonds, because a local government is far less likely to go bankrupt than a corporation.

Not exact matches

Serge Pepin, the head of BMO Investments, says people should consider corporate or high - yield bonds — also known as junk bonds — which pay higher yields than federal issues.

Investment - grade corporates pay about two percentage points more than short - term government bonds, and they're less risky than they used to be.

Traders have pulled more than $ 1.8 billion from two junk - focused ETFs just in the past week: the iShares iBoxx $ High Yield Corporate Bond -LRB-- $ 1.06 billion, most of any ETF) and the SPDR Barclays High Yield Bond -LRB--765.4 million, the second most), while also redeeming $ 577.4 million (the fourth most) from the iShares iBoxx Investment Grade Bond ETF, according to FactSet and ETF.com.

For people looking for ways to boost the income of a portfolio, that has often meant casting a wider net than the traditional core holdings of U.S. Treasuries and investment grade corporate bonds.

Stocks are being retired by corporate raiders in exchange for high - interest («junk») bonds, and by corporations using their earnings to buy their own stocks rather than to make new direct investments.

The average investment - grade (high - yield) bond trades on less than 32 % (36 %) of days over the prior six months — liquidity in corporate bonds was considerably lower than in traditional listed equity markets.

In recent months, the yield on US corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the yield on government debt, dropping within striking distance of the lows seen post the 2008 financial crisis.

In addition, short interest as a percentage of shares outstanding in the $ 31.5 billion iShares iBoxx $ Investment Grade Corporate Bond ETF stood at more than 8 % as of last week, the highest since 2010.

It's also interesting to examine the changing significance and dynamics of the European bond market in general, which has almost doubled in size since 2005 to more than $ 10 trillion today, including government, investment - grade corporate debt and high yield.

Bank loans however, carry sub-investment grade ratings and have significantly more credit risk than investment grade corporate bond floating - rate securities.

Issuance of investment - grade corporate bonds picked up in early March in a receptive market, as investors sought higher yields than were available on safe - haven Treasury bonds.

The S&P U.S. Issued Investment Grade Corporate Bond Index is returning 0.6 % month - to - date which is a much better start than all of March's return of 0.04 %.

Debt funds invest in fixed income instruments such as Corporate and Government bonds, are lower - risk investment options for those looking for better interest rates than their bank's savings accounts / fixed deposits.

While high quality ratings often imply lower yields, the S&P International Corporate Bond Index has a weighted average yield - to - worst of 2.16 %, which is higher than the average yields of U.S. treasuries and comparable to the 2.26 % yield of the S&P 500 AAA Investment Corporate Bond Index.

GICs may even pay slightly more than investment - grade corporate bonds with terms of two to five years, Cunningham says, which is contrary to the usual pattern.

Investment grade corporate bonds typically offer better return potential than Treasury bonds, and investment grade debt allows investors to pursue those returns without adding as much risk as high yiInvestment grade corporate bonds typically offer better return potential than Treasury bonds, and investment grade debt allows investors to pursue those returns without adding as much risk as high yiinvestment grade debt allows investors to pursue those returns without adding as much risk as high yield bonds.

Mortgage bond yields tend to be lower than corporate bond yields, as the securitization of mortgages makes such bonds safer investments.

They are, however, widely viewed as conservative investments and safer than corporate bonds.

Corporate bonds are more likely than other corporate investments to be repaid if a company declares baCorporate bonds are more likely than other corporate investments to be repaid if a company declares bacorporate investments to be repaid if a company declares bankruptcy.

This is more than double the average return to stock market investments since 1950, and more than five times the returns to corporate bonds, gold, long - term government bonds, or home ownership.

The debt portfolio of the fund consists of high quality corporate bonds and G - secs with more than 80 % investment in AAA rated securities and rest in AA rated.

The $ 102,000 investment in a four - year college yields a rate of return of 15.2 percent per year — more than double the average return over the last 60 years experienced in the stock market (6.8 percent), and more than five times the return to investments in corporate bonds (2.9 percent), gold (2.3 percent), long - term government bonds (2.2 percent), or housing (0.4 percent).

The drawback, however, is that because U.S. government bonds are regarded as the world's safest fixed - income investments, the interest rates they pay investors are lower than those of corporate bonds.

Rather than pursue cross-over corporates or high - yield or even long - term investment grade corporates, we have stayed near the middle of the curve with funds like: (1) SPDR Nuveen Muni (TFI), (2) Vanguard Total Bond (BND), (3) iShares 7 - 10 Year Treasury (IEF) and (4) iShares 3 - 7 Year Treasury (IEI).

The past week's news affected the S&P U.S. Investment Grade Corporate Bond Index similarly, as the yield - to - worst closed before the holiday at 3.19 %, 3 bps lower than the previous Friday's 3.22 %.

These are bonds paying a high rate of interest because the issuers are of lesser credit quality than government and investment - grade corporate bonds.

The BofA Merrill Lynch Index tracks the performance of U.S. dollar - denominated investment grade government and corporate public debt issued in the U.S. domestic bond market with at least 1 year and less than 10 years remaining maturity, including U.S. treasury, U.S. agency, foreign government, supranational and corporate securities.

Through its investment in Vanguard Total International Bond Index Fund, the Portfolio also indirectly invests in government, government agency, corporate, and securitized non-U.S. investment - grade fixed income investments, all issued in currencies other than the U.S. dollar and with maturities of more than 1 year.

This index measures a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States — including government, corporate, and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities, all with maturities of more than 1 year.

Corporate bonds are considered to be riskier than government bonds because the investment grade rating of corporate bonds varies depending on the debt issuance and revenue of theCorporate bonds are considered to be riskier than government bonds because the investment grade rating of corporate bonds varies depending on the debt issuance and revenue of thecorporate bonds varies depending on the debt issuance and revenue of the company.

By investing in different types of bonds, say government bonds, corporate bonds or municipal bonds, you may even receive some advantages than just diversification of investments.

Government bonds, such as US Treasuries, and investment grade corporate bonds have performed far worse when yields have been rising than when they have been falling.

Average yields on investment - grade corporate bonds have risen just 2 basis points this month to 96 basis points more than Treasuries, while junk bond yields are up just 7 basis points to 253 basis points over Treasuries, according to Merrill Lynch data.

With a portfolio composed of investment - grade debt from corporate, sovereign and supranational issuers with three - year maximum maturities, the iShares 1 - 3 Year Credit Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield than comparable all - Treasury funds, but it does have a marginally higher credit risk.

The secondary market for corporate bonds may be less active than the market for ordinary shares, making it harder for the ETF issuer to sell its bond investments.

Generally speaking, the constituents are of higher quality than those of traditional corporate indices such as the S&P U.S. Investment Grade Corporate Bond Index and the S&P U.S. High Yield Corporate Bocorporate indices such as the S&P U.S. Investment Grade Corporate Bond Index and the S&P U.S. High Yield Corporate BoCorporate Bond Index and the S&P U.S. High Yield Corporate BoCorporate Bond Index.

Income, Yield and Duration: Investment grade municipal bonds on average have a higher coupon cash flow to bondholders than corporate bonds and that cash flow is exempt from federal taxation.

While many people are familiar with the large company stocks represented by the S&P 500 and investment - grade corporate bonds, the investment universe is much bigger than these two asset classes.

Because corporate bonds require a little bit more work to purchase than a common stock (which can be done with a few clicks of a mouse in your online investment account), you'll generally need to go through a broker or your financial adviser to add bonds to your portfolio.

The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index representing more than 5,000 taxable government, investment - grade corporate and mortgage - backed securities.

In addition, short interest as a percentage of shares outstanding in the $ 31.5 billion iShares iBoxx $ Investment Grade Corporate Bond ETF stood at more than 8 % as of last week, the highest since 2010.

These investments have higher risks than most types of corporate bonds.

As of Feb. 5, 2018, investment - grade spreads had tightened 6 bps and were more than 110 bps tighter compared with February 2016, as measured by the S&P 500 Investment Grade Corporate Binvestment - grade spreads had tightened 6 bps and were more than 110 bps tighter compared with February 2016, as measured by the S&P 500 Investment Grade Corporate BInvestment Grade Corporate Bond Index.

Like Treasuries, the yield of the S&P U.S. Issued Investment Grade Corporate Bond Index (2.77 %) is 14 - basis point higher than the 15th of the month.

The S&P U.S. High Yield Low Volatility Corporate Bond Index (the HYLV index) was launched on Dec. 20, 2016, with the aim of capturing high yield bonds with less credit risk and lower return volatility than the broad investment universe of U.S. high yield bonds.

Through its ownership of the two bond funds, the Portfolio also indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 year.

The percentages of the Portfolio's assets allocated to each Underlying Fund are: Vanguard ® Total Bond Market II Index Fund 60 % Vanguard ® Total International Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 yBond Market II Index Fund 60 % Vanguard ® Total International Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 yBond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 ybond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 year.

The Index measures a wide spectrum of public, investment - grade, taxable fixed income securities in the United States — including government, corporate, and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — all with maturities of more than 1 year.