Sentences with phrase «junk bond yields rated»

As Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period, junk bond yields rated CCC or below have declined 1.5 percentage points as the bonds have rallied.»

Not exact matches

The average yield of junk bonds rated «B» is 6.5 %.

The $ 1.2 trillion market for U.S. junk bonds yields about 6.6 percent, double what's offered by higher - rated company debt, according to Bank of America Merrill Lynch index data.

Currently, some junk bonds with triple - C ratings are yielding under 6 %.

However, high - yield (junk) bond funds and international bond funds can be affected by factors other than interest rates.

Junk bond funds are largely out of favor this year, but an interest - rate - hedged high - yield bond ETF is beating that trend.

Although there have been many ups and downs in this extended rate cycle, junk bonds and the portfolio managers who buy and sell them have never experienced a rise from these yield levels before.

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

Readers have no doubt noticed that numerous inter-market correlations seem to have been suspended lately, and that many things are happening that superficially seem to make little sense (e.g. falling junk bond yields while defaults are surging; the yen rising since the BoJ adopted negative rates; stocks rising amid a persistent decline in earnings growth; bonds, gold and stocks moving in unison, etc., etc.).

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.

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.

Non-investment-grade debt securities (high - yield / junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher rated securities.

These floating rate bonds are a good alternative to high yield corporate and junk bonds when interest rates are rising.

Demand for yield combined with the benefits of floating rate interest payments and better security provisions than fixed rate junk bonds all helps to draw attention to this asset class.

High - yield, lower - rated («junk») bonds generally have greater price swings and higher default risks.

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

Private equity deals will likely continue to be made until something happens to disturb that gap, such as junk bond yield spreads widening or interest rates moving up, Levkovich said.

However, the interest rate isn't necessarily the same thing as some bonds may have higher yields do to the potential for defaults like junk bonds for example.

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.»

AAA bonds carry lower yields than junk bonds much like the interest you get when lending to people with higher or lower credit ratings.

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.

When risk - free and AAA - rated corporate bonds yield less than 4 %, 3.5 % yield on utilities and 6 % yields from junk ETFs are difficult to pass up.

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.

Similarly, some high - yield bond funds may also be too risky if they invest in low - rated or junk bonds to generate higher returns.

For example, the spread between high yield junk bonds and the risk - free rate of comparable treasuries has rarely been this low.

Non-investment-grade debt securities (high - yield / junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher - rated securities.

By contrast, bonds rated BB + or Ba1 or worse, are treated as high - yield bonds, which many refer to as junk bonds.

Bonds with lower ratings are considered «speculative» and often referred to as «high - yield» or «junk» bBonds with lower ratings are considered «speculative» and often referred to as «high - yield» or «junk» bondsbonds.

Non-investment-grade bonds (aka junk bonds or high yield bonds) are more affected by factors other than interest rates, including some of the same factors (economic booms or recessions) that affect stocks.

The rate of default is much higher for high - yield bonds, fittingly referred to as junk bonds.

High yield securities are generally rated below investment - grade and are commonly referred to as «junk» bonds.

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

This has particularly been the case for issuers rated below investment grade, like Rogers Communications, who have accessed the well developed U.S. high yield or junk bond market.

Lower - rated or high yield debt securities («junk bonds») involve greater credit risk, including the possibility of default or bankruptcy.

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.

A junk bond or high - yield bond is a bond rated at «speculative» grade or at «less than investment grade,» likely BB or lower.

Many of today's high - yield bonds, particularly those rated Ba by Moody's or BB by other rating agencies, are not considered «junk.»

Because managers Dan Fuss and Kathleen Gaffney typically own a large helping of high - yield, or junk, bonds (those rated double - B or lower), as well as bonds from developing nations, the fund took a hit when investors bailed out of anything smacking of risk during the financial crisis and rushed into Treasuries.

Never in my life would I have considered buying a CCC junk bond at 110 to yield 7 % (quick ratings guide: BBB = investment grade, BB = fine company, B = either a fine or a sketchy company the ratings agencies have no clue which, CCC = this will default just give it a few years, D = this defaulted like we said when we rated it BB uhhhh we're not good at this).

In some cases, the term «junk bonds» is used to refer to all high - yield bonds — i.e., those that are rated below investment grade or are not rated.

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.

The risks associated with higher - yielding, lower - rated securities (commonly called junk bonds) include higher risk of default and loss of principal.

The average junk bond risk premium is 4.55 percentage points over comparable Treasury yields, and this has helped buffer high yields somewhat from rising Treasury rates.

High Yield Securities Risk: High yield securities or unrated securities of similar credit quality (commonly known as «junk bonds») are more likely to default than higher rated securiYield Securities Risk: High yield securities or unrated securities of similar credit quality (commonly known as «junk bonds») are more likely to default than higher rated securiyield securities or unrated securities of similar credit quality (commonly known as «junk bonds») are more likely to default than higher rated securities.

Junk bonds have tended to outperform the higher rated bonds after a recession, and have been the preferred instrument for 2009, yielding a 43 % return as at the end of November 2009, according to Morningstar.

See our posts 3 Ratings Agencies On Argentina: Still Junk Bonds, Yield Mania: Record Emerging Market Debt Inflows, Argentina A Fave, 3 Experts: What's Next For Argentina Economy, Investments?

They are often called junk bonds or high - yield bonds because they have to pay higher interest rates to attract investors.