With market volatility hitting multi-decade lows,
junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.
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.
If the stock market gets wild again,
junk bonds will
also get hit, but if you can wait out turmoil, the higher
yield will pay you more income.
Also remember that if a
bond fund
yields 6 % currently, it is stuffed with
junk 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.
Yet we
also see very strong inflows into
junk bond funds, based on the belief that these high
yields represent value rather than information about default probabilities.
Also, stocks are volatile and generally the riskiest assets, with the possible exception of credit default swaps, high -
yield «
junk»
bonds, and other similar assets.
This risk is higher when investing in high
yield bonds,
also known as
junk bonds, which have lower ratings and are subject to greater volatility.
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.
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.
High -
yield bonds (
also known as «
junk bonds») are subject to additional risks such as the risk of default.
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.»
For that matter, your
bond holdings could
also have been more risky than the broad
bond market, which could be the case if you invested heavily in high -
yield, or
junk,
bonds, which lost more than 25 %.
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.
Similarly, some high -
yield bond funds may
also be too risky if they invest in low - rated or
junk bonds to generate higher returns.
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.
High -
yield bonds —
Also known as «
junk bonds».
It's
also not the time to chase attractive
junk bond yields, since they're getting hit by interest rate risk and credit risk at the same time.
Also, on the fixed income side, I've been selling HY [DM: High
Yield, aka «
Junk»]
bonds, shortening duration, and buying floating rate bank loans.
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.
High
yield bonds may
also sometimes be called
junk bonds.
High
yield debt
also landed on the maps of most investors in the second half of 2015, as did increased queasiness in anticipation of the uncertain severity of the impending
junk bond rapids.