Sentences with phrase «junk debt yields»

In the short run, junk debt yields don't react much to Treasury yields.

Not exact matches

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

The sell off in the market for high yield debt, or junk bonds, is now hitting a type of structured bond that is similar to the the type that blew up in the financial crisis.

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

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.

Investments rated below investment grade are commonly referred to as high - yield, high risk or «junk debt.»

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.

In the case of the last crisis, yields went over 20 % on junk debt and even high - grade credits like Comcast and Nordstrom's were yielding in the low teens.

As long as investors aren't too concerned about the risk of capital losses - that is, as long as investors are in a risk - seeking mood (Iron Law of Speculation), a mountain of zero - interest hot potatoes will also embolden investors to chase yield further out on the risk spectrum, for example, in junk debt, stocks and mortgage securities.

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

On the subject of junk debt, in the first two quarters of 2014, European high yield bond issuance outstripped U.S. issuance for the first time in history, with 77 % of the total represented by Greece, Ireland, Italy, Portugal, and Spain.

Investors demanded the most extra yield in almost a month to buy junk debt, according to a Bloomberg Barclays index fixed late Wednesday.

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.

The Sub-Advisor seeks to achieve the fund's investment objective by selecting a focused portfolio of high - yield debt securities (commonly referred to as junk bonds).

Investors are demanding higher yields to hold the recent downgrade to junk status debt.

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

The company issued junk debt earlier this year at 5.35 %, issues which still yield more than 300 basis points more than comparable U.S. Treasuries.

Leading investments in 2013 are concentrated in anything yield (from junk debt to utilities) and low volatility consumer staples.

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.

Investments rated below investment grade are commonly referred to as high - yield, high risk or «junk debt.»

Anything below — Cs and Ds — is considered junk or, more politely, high - yield debt.

The fund may invest up to 100 % of its managed assets in below - investment grade debt securities (commonly referred to as «high - yield» or «junk» bonds).

Indeed, the rest of the world's central banks are purchasing assets (e.g., government debt, investment grade corporate bonds, higher - yielding junk corporates, stocks, etc.) with QE «funny money» in the hopes that it will boost economic growth.

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

The Fund's investments in high - yield securities or «junk bonds» are subject to a greater risk of loss of income and principal than higher grade debt securities.

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

High - yield securities (junk bonds) have speculative characteristics and present a greater risk of loss than higher quality debt securities.

Underwriting volume this year for high - yield securities, known widely on Wall Street as junk debt, has sunk at firms such as Merrill Lynch, Citigroup, Lehman Brothers and JPMorgan Chase, adding more salt to the wounds already inflicted by massive losses on souring mortgage securities.

One final note, and one that I don't have a link for... Moody's suggested in a macroeconomic note that yield spreads on junk debt are too high for the FOMC to tighten much.

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?

To most investors, both institutional and retail, there aren't many — essentially higher risk and less liquid and less transparent vehicles such as junk bonds, high - yield debt vehicles and hedge funds.

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.