Sentences with phrase «junk bond investors»

In the same way that junk bond investors get hurt in volatile times, so do hedge fund nerds.

In fact, I would bet good money that junk bond investors will wake up one day and find that the value of their holdings will be down 40 - 50 % overnight.

Not exact matches

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

«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.

NEW YORK, Jan 18 - U.S. fund investors pulled $ 3.1 billion from high - yield «junk» bonds during the latest week, Lipper data showed on Thursday, offering new warning signs about risk appetite despite global markets» continuing triumph.

Investors increasing their current yield by taking credit risk in junk bonds have recently learned a similar lesson.

Investors holding Detroit's bonds have already taken a hit as the steady erosion of the city's finances has slashed the city's credit rating to junk status.

It may be that stock investors figure that most of the problems in the junk bond market are in the energy segment, which accounts for about 17 % of the market.

Its market share is shrinking, the company lowered its earnings guidance last week, and investors are treating its bonds as though they had junk status.

Legendary Wall Street value investor Howard Marks says the big money has already been made in hedge funds, and maybe in private equity and junk bonds too.

However, investors of junk bonds should note the implications and risks that are involved with investing in bonds that are issued by companies with liquidity issues.

It would be much easier if the creditors and investors in junk mortgages and junk bonds took their losses, and if the $ 450 billion in derivative superstructure simply was let go.

Moody's Investors Service, which downgraded Tesla's credit rating further into junk in March, still expects Tesla will need to raise about $ 2 billion selling equity, convertible bonds or debt, to offset the cash it burns this year and securities maturing through early 2019.

The Merriam - Webster dictionary defines the word «haven» as «a place where you are protected from danger, trouble, etc.» Referencing junk bonds as a place where investors «are protected from danger» is the epitome of theatrical absurdity.

The risk in higher yielding junk bonds first and foremost is derived from fact that any company paying north of 5 % to issue debt has a high probability of never paying back the investors who by the debt.

The broad lineup of Fixed Income ETFs allow investors to tap into nearly every corner of the bond market, including government bonds, corporate bonds, junk bonds, and international bonds.

The endgame was to force investors into riskier assets, [e.g. junk bonds, equities, real estate], create a wealth effect, and stimulate the economy.

Now, with the magic of QE2, the Fed wants to drive long - term rates down to unseen levels and push all Treasury investors (short or long) towards higher - risk assets — junk bonds, real estate, stocks, and commodities.

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

Yeah, investors often confuse yield with fixed income risk, but I agree that junk bonds are much closer to stocks from a risk perspective.

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.

The investor should note that vehicles that invest in lower - rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.

It may be somewhat useful to make comparisons to that period of time to see how certain interest rate sensitive asset classes such as junk bonds, REITs, dividend - paying stocks or bonds performed, but my guess is that particular environment doesn't do a great job of showing investors what a typical rising rate scenario would look like (assuming there is such a thing).

Junk bonds can be an attractive option for private and institutional investors chasing returns.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

Investors» warm reception for this week's $ 3.5 bln issue looks strange given the island's junk rating and rocky finances, not to mention that existing bonds trade at a big discount.

-- Junk - bond investors are passing up traditional protections in their race to buy new debt, and some participants worry the diminished safeguards are a sign of an overheated market.

Overall, default rates among junk - bond issuers are projected to move about 3 percent next year, according to Moody's Investors Service, up from 2.7 percent in the first 10 months of this year.

With $ 40 million dollars from Wall Street investors, including $ 10 million from the infamous junk - bond dealer Michael Milken, Ronald Packard, a former Goldman Sacks executive and William Bennett, a former Secretary of Education, formed K12, Inc. so that they and their investors could profit off the children of the United States.

C and D level bonds, which are also known as «junk bonds», are some of the riskiest bonds an investor can own but also have some of the highest yields and best potential returns.

Investors who might consider P2P useful could be those already including high yield (junk) bonds in their portfolio.

The U.S. territory also is grappling with $ 70 billion in debt, ratings firms have downgraded its bonds to one notch above junk and investors fear it could default on its obligations.

@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.

Still, junk - bond investors currently have a modest margin for error, should the default rate pick up.

As to junk bonds, I'd say that an attentive investor * will probably have a handful of opportunities during his / her lifetime to buy them at very advantageous prices (beginning of 09, for example).

Junk bonds receive a rating of Ba1 or lower from Moody's Investors Service, or BB + or lower from Fitch Ratings and Standard & Poor's.

Some of the bonds that come due in the next 12 months were trading at prices that offered hearty investors a 25 % to 35 % yield, one junk bond manager told us.

3 - month fund flows is a metric that can be used to gauge the perceived popularity amongst investors of Target Maturity Date Junk Bonds relative to other bBonds relative to other bondsbonds.

It was reckless because no small investor should have only one junk bond in his / her portfolio.

Some investors think about investment homes along a continuum similar to bonds, ranging from AAA (lower return, lower risk, more affluent neighborhoods) to junk bonds (higher return, higher risk, less affluent neighborhoods).

But these funds may offer a great addition to investors who do use junk bonds in their portfolio.

Investors may be tempted to offset this weaker amplification from investment - grade bonds by substituting junk bonds, high - dividend stocks, emerging market bonds, or other high - yield assets.

So if investors think that bond values will drop due to increases in interest rates, they may panic and request a much higher premium for junk bonds.

However, investors of junk bonds should note the implications and risks that are involved with investing in bonds that are issued by companies with liquidity issues.

Even as junk bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 12 %.

Many investors will never want to venture outside investment grade debt (BBB or higher) and will only find themselves holding bonds which are considered junk after the debt has had its credit rating downgraded.

Investing in the SPDR High - Yield Bond ETF (NYSE: JNK) is a popular way for individual investors to get in on the junk bond actBond ETF (NYSE: JNK) is a popular way for individual investors to get in on the junk bond actbond action.

From my point of view, the remaining or recent investor in LINE has basically been getting a junk bond kind of instrument with an equity's position in the capital structure where the appreciation is capped / managed by the management (Although I must confess that I have only glanced at the press releases and progress since selling it....

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