Sentences with phrase «junk bond investments»

These funds do it all, from private equity - style investments in small companies to leveraged junk bond investments you can't find anywhere else.

Not exact matches

His legal background proved invaluable in 1991, when the state of California and its insurance commissioner John Garamendi seized Raleigh's then - financial partner Executive Life Insurance Company after the value of the insurer's multibillion - dollar portfolio collapsed — a fate tied to its massive investments in the junk bond market of the go - go 1980s.

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.

«It's on the way» to junk status, said Carlos Gribel, the head of fixed income at private investment bank Andbanc Brokerage in Miami, adding the bonds still have room to fall before becoming attractive to investors with an appetite for risk.

You can invest in bond funds by stated maturities (short - term, intermediate - term, long - term), credit quality (treasuries, junk bonds, investment grade corporate bonds) or pretty much any other way you can separate bond investments.

The fund can purchase securities of any credit quality, including those in default, but it will primarily invest in investment - grade debt, with no more than 20 % of the portfolio invested in junk bonds.

Fixed income, rising (or falling) yields, junk bonds, Fed tightening, TIPS, spreads, mortgage - backed securities — there's no shortage of jargon for this supposedly «boring» investment that most of us own in our portfolios.

If a junk bond defaults, you might not even get your initial investment back.

Cutbacks in long - term investment also are the product of corporate raids financed by high - interest junk bonds.

All else equal, unless it possesses some sort of major offsetting advantage that makes the risk of non-payment low, a company with a low - interest coverage ratio will almost assuredly have bad bond ratings, increasing the cost of capital; e.g., its bonds will be classified as junk bonds rather than investment grade bonds.

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.

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.

Investing in high yield fixed income securities, otherwise known as «junk bonds», is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities.

On the other end of the scale, Schwab will only let you search investment grade bonds online (you must call the bond desk to trade junk), will only let you buy online (you must call to sell), and does not allow limit orders at all.

If you feel comfortable with more risky type of investments such as options, junk bonds or crypto - currencies — by all means, go ahead.

For example, Fidelity will allow you to search both investment grade and junk bonds, show you the number of bonds available at both the bid and ask price, and will even allow you to submit a limit order (although you can not put in a good until cancelled order or one that is more than a small amount away from the current bid / ask).

Plenty of investment - grade credit bonds suspended coupon payments in the Depression, transiting directly from A to D rating without even making a pit stop at a C junk rating.

The eventual downgrade to junk, aka non-investment grade, will make IL debt ineligible for investment for some of their major institutional investors (one of which has already called for a boycott of Illinois debt) which are restricted by mandate to purchase only investment grade muni bonds.

Most bonds (not junk bonds) represent a less risky investment than most stocks, which means that stocks have to offer a higher return as a premium for increased risk.

Bank of America Merrill Lynch raised a total of $ 2.6 billion in investment banking fees in the US last year, when it benefited from a boom in junk bond underwriting as corporate issuers rushed to take advantage of low rates ahead of the Federal Reserve's plans to withdraw stimulus measures.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

Meanwhile, Bloomberg reports that pension funds, squeezed for sources of safe return, have been abandoning their investment grade policies to invest in higher yielding junk bonds.

These include limiting the number of junk bonds that can be acquired by federal - and state - insured institutions, and specifying to company directors and officers that achieving the best short - term investment returns is not their main fiduciary responsibility.

Wall Street investment bank Jefferies has recently sidelined a seven - year junk bond veteran to bring in a top trader from Citigroup — and has caused a split among some of...

High - yield bonds (also known as «junk bonds») may be subject to greater levels of interest rate, credit, and liquidity risk than investments in higher rated securities.

As time passed, the number of funds increased as they began to specialize in certain types of investments: foreign - country bonds, high - tech stocks, high - yield (junk) bonds, and so forth.

The drugmaker's bonds were cut to junk from investment grade by Moody's after its US$ 41 - billion buyout of Allergan Plc's generics business in 2016 left the company with a debt load that outweighed its value in the stock market.

The Sub-Advisor seeks to achieve the fund's investment objective by selecting a focused portfolio of high - yield debt securities (commonly referred to as junk bonds).

Teva Pharmaceutical's bonds were cut to junk from investment grade by Moody's after its US$ 41 - billion buyout of Allergan's generics business in 2016 left the company with a debt load that outweighed its value in the stock market.

Although the advisor intends to invest at least 65 % of the fund's net assets in municipal bonds rated investment grade or in unrated municipal bonds that fund management believes are of comparable quality, it is possible that in the future the fund could invest up to 100 % of its assets in «junk bonds.»

Most bonds (not junk bonds) represent a less risky investment than most stocks, which means that stocks have to offer a higher return as a premium for increased risk.

The yield for HYG, a high - yield (i.e. junk) corporate bond ETF, is currently 5.72 % versus 3.56 % for LQD, an investment - grade corporate bond ETF.

That said, the investment grade corporate bond market, the junk bond market, and the bank loan markets can't have a better year in 2010.

The main danger of a junk bond fund is that there will be a higher rate of bankruptcy / default than in an investment grade bond fund.

We are even less enthusiastic about high yield ETF investments in high - yield («junk») corporate bonds.

The BMO Monthly Income ETF (ZMI) is a portfolio of 10 other high - yield exchange - traded funds, covering real estate investment trusts (REITs), corporate bonds (both investment grade and junk), emerging market bonds, and dividend - paying stocks.

(«Our investment policy requires that we sell junk bonds.»)

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.

Junk underperforms investment grade bonds on average.

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.»

@Jerry, I agree that today the main risk in bonds is duration risk (AKA interest - rate risk)-- last weekend's Barron's has an interview with the UBS Wealth Management top managers pointing out this means convincing investors to switch from Treasuries and investment - grade corporates to well - selected junk (HYLD is a jewel there — DO N'T go for index funds in bonds, very differently from ones in stocks they make no sense... where's the sense in wanting to lend more to companies which are more indebted?!

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.

High - yield bonds, also referred to as «junk bonds,» offer higher rates of return, and therefore carry a higher rate of risk, than investment grade bonds.

Junk bonds carry higher default risk and are thus far more sensitive to the health of the economy than investment - grade bonds.

Returns from investments in «junk» bonds, government guaranteed mortgage securities and even some battered euro - zone debt are plunging in the wake of global central bank policies intended to suppress borrowing costs.

U.S. Treasury bonds are considered to be the safest investment available, while high - yield, junk bonds have significant risk of the issuer failing to pay interest or repay principal.

High - yield bonds (sometimes referred to as junk bonds) typically offer above - market coupon rates and yields because their issuers have credit ratings that are below investment grade: BB or lower from Standard & Poor's; Ba or lower from Moody's.

Fixed income, rising (or falling) yields, junk bonds, Fed tightening, TIPS, spreads, mortgage - backed securities — there's no shortage of jargon for this supposedly «boring» investment that most of us own in our portfolios.

Investment grade corporate bonds issued by «blue chip» companies tracked in the S&P 500 Investment Grade Corporate Bond Index barely held even and corporate junk bonds ended in the red.

Bond power rankings are rankings between Target Maturity Date Junk Bonds and all other U.S. - listed bond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average dividend yieBond power rankings are rankings between Target Maturity Date Junk Bonds and all other U.S. - listed bond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average dividend yiebond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average dividend yields.