Sentences with phrase «junk bonds offer»

To compensate investors for the greater risk of default, junk bonds offer higher yields.

With equity valuations at historic highs and government bonds barely eking out a return, junk bonds offer solid yields at a good price, he reasons.

The theory pushed was that junk bonds offered higher returns but with a lower risk thanks to low default rates.

Not exact matches

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.

Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.

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.

Most of the capital provided to these companies comes from high - yield («junk») corporate bond sales, preferred share offerings, and debt.

David Swensen offers a savage takedown of junk bonds in his book Pioneering Portfolio Management.

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.

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.

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.

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.

HIGH - YIELD JUNK BONDS can offer impressive interest payments.

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.

Assets that are hybrid between equity and debt tend not to offer much diversification to a balanced core portfolio, so junk bonds, convertible bonds, and preferred stock do not offer much of a diversification advantage.

Guggenheim also offers defined maturity funds that invest in junk bonds.

(The funds offered by Guggenheim below do invest in both «junk» bonds and include financials.)

Guggenheim Investments currently offers 14 of these funds, 8 of which invest in investment grade bonds, 6 of which invest in high yield or «junk» bonds.

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

Junk bonds can offer astronomical yields.

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 -LSB-...]