Sentences with phrase «junk bond issue»

I've seen a big seller who needed to sell a big position in a junk bond issue force the market down 40 points in order find a level where buyers would step up.

The earliest CDOs were constructed by Drexel Burnham Lambert, the home of former junk bond king Michael Milken, in 1987 by assembling portfolios of junk bonds issued by different companies.

The rate of new junk bond issues grew so rapidly it easily outpaced the rate of defaults.

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.

One reason for looking at junk bonds is that the firms that issue junk bonds are closer on the risk continuum to a large mass of firms that are too small and too weak to issue bonds at all, and that rely on banks or the informal capital market for funds.

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.

So while these «fallen angel» bonds have the potential to be intrinsically higher quality than debt originally issued at the junk or high - yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.

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.

As Rosenbluth noted, HYDB allocates more of its roster to B - rated bonds and less to CCC - rated issues than do the two largest, traditional junk bond ETFs.

Borrowers issue high - yield or «junk» bonds because they are considered too risky to raise funds through established channels.

A partial but not complete list of worries includes: China melt down, Yuan reevaluation after effects or Taiwan action, global biomedical epidemics, e.g. Avian Flu, or bioterrorism outbreaks, trade wars (China, EU), major hedge fund bankruptcies, a PBGC (Pension Benefit Guaranty Corp.) shortfall crisis, major junk bond or emerging market bond default, a bank derivative blowup, Fannie Mae issues plus possible assorted natural disasters.

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.

Companies are issuing record amounts of junk bonds.»

That's why they were forced to issue junk bonds in the first place.

And the Fidelity Leveraged Company Stock (FLVCX), which invests in the stock of those companies which resort to issuing junk bonds or which are, otherwise, highly - leveraged (a.k.a., deeply in debt).

The structural issue at work encouraging the deal - making is that cash flow yields are markedly above junk bond yields, similar to the environment during the late «80s when the market in junk bonds flourished.

«Junk bonds» is a colloquial term used for bonds issued by companies considered to be new and unproven.

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.

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.

High - yield bonds, also known as «junk bonds,» generally have a greater risk of default, which increases the risk that an issuer may be unable to pay interest and principal on the issue.

These ratings indicate poor credit worthiness of the company issuing the junk bonds.

Milken and company made a killing selling new issues of «safe» junk bonds with the lure of higher yields.

Junk corporate bonds tracked in the S&P U.S. Issued High Yield Corporate Bond Index returned 2.65 %.

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.

Junk Bonds Governments aren't the only entities that can issue bBonds Governments aren't the only entities that can issue bondsbonds.

Loomis Sayles Bond Fund (LSBRX, 3.3 %) isn't technically a junk - bond fund, but longtime manager Dan Fuss has excelled as a bond picker, particularly in high - yield issBond Fund (LSBRX, 3.3 %) isn't technically a junk - bond fund, but longtime manager Dan Fuss has excelled as a bond picker, particularly in high - yield issbond fund, but longtime manager Dan Fuss has excelled as a bond picker, particularly in high - yield issbond picker, particularly in high - yield issues.

Because they pose a greater risk of default than high - quality bonds, junk issues must yield more to attract buyers.

While bond investors can usually expect to get both the promised interest payments and their principal back at maturity, that isn't a sure thing with so - called junk bonds, which are issued by companies with shaky finances.

Before 1977, when new junk - bond issues took off,... non-investment-grade bonds were thought of as «bad» investments, at any price.

For junk bonds, moves in interest rates aren't nearly as important as investor perceptions of the health of the economy and the issuing companies.

In addition to small cap and big cap value funds I also lightened up on GM & GMAC junk bonds and added to my investment grade bonds by buying AAA and AA exchange traded debt issues that were mainly utilities and financial companies.

Since this fund is composes of higher quality issues, the risk of default is modest compared to junk bonds, but of course, we only consider US government debt as the sole risk - free bond issuer.

+ read full definition (or «junk») bonds are corporate bonds issued by companies that have been given low credit ratings (BB or lower) by a credit ratingCredit rating A way to score a person or company's ability to repay money that it borrows based on credit and payment history.

Junk bonds are issued by companies which require a significant amount of financing such as utility companies.

That said, research also shows that investment - grade bonds as a group, which includes not just Treasuries but government agency issues and high - quality corporates (though not high - yield, or junk, bonds), can also provide solid diversification during periods of stock market turbulence.

In 1977, however, Bear Stearns underwrote the first new - issue junk bond in decades.

Industry analysts are bracing for more issues of so - called junk bonds to be delayed or pulled completely in coming months.

The Peritus High Yield ETF (HYLD) shops the total junk bond market, but management has invested the fund in only 59 issues.

With the preeminence of options in the corporate world, and the emergence of «reporting» but non-listed corporations [often those issuing «junk bonds» to the investing public,] private company analysis, research and valuation can now rely more than before on the tools developed by analysts of public securities.