Sentences with phrase «junk bonds rated»

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

This implies that the rate that DB had to pay to attract deposits is equivalent to a triple - C rated credit (although the 10 - yr junk bond rates for double - B rated bonds are around 5.5 %, keep in mind that DB is paying 5 % for 3 - month money).

The striking similarities between insolvent Puerto Rico and the Land of Lincoln serve as a dire warning: Without real reforms, Illinois won't be able to shake off an eventual junk bond rating or get off the path to financial ruin.

Not exact matches

This «recent stream of defaults» pushed the default rate of junk - rated bonds in the US to 3.9 % for the trailing 12 - month period ended in March, up from 3.4 % in December.

This caused the default rate for broadcast & media junk bonds to spike to 20 %, from 3.7 %, and it caused the default rate for leveraged loans in the sector to spike to 16 %, according to Fitch Ratings, which added soothingly:

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.

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.

Meanwhile, the spread between riskier «junk» corporate bonds and «risk - free» U.S. Treasurys has dropped since the election even though interest rates generally are rising.

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.

When people see banks browbeating the bond rating agencies and accounting firms to whitewash the quality of what they're pawning off on their customers, when they see bank lobbyists getting Washington to block state prosecutions of financial fraud so as to clear the way for more predatory lending and false packaging of the junk securities they're selling and to win the right not to reveal their true financial position, there's a good reason not to buy what's in these black boxes.

All else equal, unless it possesses some sort of major offsetting advantage that makes the risk of non-payment low, a company with a low - interest coverage ratio will almost assuredly have bad bond ratings, increasing the cost of capital; e.g., its bonds will be classified as junk bonds rather than investment grade bonds.

One red flag for lenders is that the volume of energy debt rated CCC or below — the weakest ratings among junk bond issuers — has more than doubled to $ 62 billion from a year ago, Fitch said in a June 12 report.

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.

Some 5.7 % of corporate junk bonds from emerging markets are trading at prices below 70 cents on the dollar, more than double the rate for higher - risk U.S. bonds, according to JPMorgan.

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

The chart above shows the rate of return comparison between the S&P 500 and junk bonds (HYG).

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.

With $ 23 billion in debt and its bonds rated as junk, ArcelorMittal started to scale down.

For example, Overseas Shipholding Group (equity ticker OSG) is a deeply junk rated oil tanker company that has seen its bonds drop from trading around par (par means 100 cents on the dollar when comparing the market price to the face amount of the bonds) to distressed levels between 60 and 70 cents on the dollar.

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.

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.»

Plenty of investment - grade credit bonds suspended coupon payments in the Depression, transiting directly from A to D rating without even making a pit stop at a C junk rating.

Spreads on the lowest quality segment of the «junk» bond category, «C» rated bonds, have narrowed by an extraordinary 30 percentage points since late 2001, to around 5.5 percentage points.

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.

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.

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).

Bank of America Merrill Lynch raised a total of $ 2.6 billion in investment banking fees in the US last year, when it benefited from a boom in junk bond underwriting as corporate issuers rushed to take advantage of low rates ahead of the Federal Reserve's plans to withdraw stimulus measures.

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

What we're seeing here — make no mistake about it — is not a rational, justified, quantifiable response to lower interest rates, but rather a historic compression of risk premiums across every risky asset class, particularly equities, leveraged loans, and junk bonds.

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.).

There is a threat to its Sovereign Bond rating be cut to junk status by global rating agencies as Brazil faces a tough fiscal imbalance.

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.

Telsa shares finally get sold — from $ 360 down to $ 260 — Tesla bonds downgraded by rating agency to junk — Questions about production remain — Autopilot accident (why is autopilot allowed on major roads?)

The recent ratings downgrades by both Moody's and S&P Global Ratings have placed the State of Illinois general obligation bonds on the edge of becominratings downgrades by both Moody's and S&P Global Ratings have placed the State of Illinois general obligation bonds on the edge of becominRatings have placed the State of Illinois general obligation bonds on the edge of becoming junk.

Standard & Poor's on Jan. 25 cut Illinois» bond ratings one notch to A-minus, four notches above junk status.

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.

When the Fed raises rates, it increases the competition for capital that junk bonds and junk funds face.

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.

And since most issuers have taken advantage of cheap money to lock in low rates, few junk bonds mature next year, Moody's says.

He transformed the City's bond rating from near - junk status to an «A» rating by Moody's and Standard & Poors.

Oyster Bay is reeling from scandals involving an influential restaurateur, a former town official and financial problems that triggered a ratings agency to recently downgrade the town's debt to «junk bond» status.

This is the county's seventh consecutive bond upgrade since 2014, when Rockland's bonds were rated just above junk and the county had a $ 138 million deficit.

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Rockland County's credit rating was recently downgraded again to one degree above Junk Bonds.

We have seen our bond rating increase from near junk status to «A» category ratings.

The proposal from Jim Gaughran would create a recall mechanism for officials if a municipalities bond rating were to be deemed be «junk status» if directly linked to corrupt acts taken by elected officials.

Despite being one of the wealthiest communities in the state, Oyster Bay saw its bond rating reduced to junk status in April amid swelling pension costs and persistent operating deficits.