Sentences with phrase «less liquid bonds»

When I was a corporate bond manager, I often dealt in less liquid bonds.

More broadly, the regulatory agencies in the United States and the Financial Stability Board internationally have work under way focusing on possible fire - sale risk associated with the growing share of less liquid bonds held in asset management portfolios on behalf of investors who may be counting on same - day redemption when valuations fall.

Previously, we've talked about how indexing does not work so well in less liquid bond markets, with active management producing alpha by avoiding -LSB-...]

That would usually elicit a comment from my coverage akin to, «The analyst thinks spreads have widened out for that credit because spreads in that industry have widened out, and a less liquid bond would widen out more.

Not exact matches

If policymakers, however, resolve to have no government involvement at all, the bond market will price it out for you, but the likely outcome is a residential mortgage market that is smaller, more expensive, and less liquid.

These include currency - hedged ETFs, triple - levered ETFs based on commodities, unconstrained bond funds with short positions betting against U.S. Treasurys, private equity funds, emerging market debt instruments, historically less - liquid bank loan funds, and all manner of actively managed strategies packaged in supposedly easy to buy and sell wrappers.

Facing redemptions of less than 2 percent of assets, it's possible that many bond funds could have met redemptions simply by drawing down cash or other liquid assets (after all, bond mutual funds held more than $ 200 billion in short - term liquid assets at the end of May).

Typically, the market for high yield bonds is less liquid than the market for investment grade or government bonds.

Higher transaction costs Due to a typically large spread between bid and offer prices, and higher transaction costs associated with less liquid securities, trading high yield bonds can be costly.

To be sure, corporate bonds are generally much less liquid than sovereign bonds.

Yet, if corporate bonds have indeed become less liquid, it is not because trading volumes are lower.

Pros: highly liquid, major tenors are well represented in cash bonds Cons: balance sheet intensive (ties up cash), does not support outright short positions (some part of the curve are relatively less liquid), does not support forward positions

It is true Catalonia has regional bonds, however, in comparison to the debt offered by the regional banks, it is much less liquid and it offers only a marginally higher yield that doesn't correctly reflect the riskiness of the bond or the rating.

Three others could also boost income: counting municipal bonds as liquid, or easy - to - sell, assets; requiring less debt that won't have to be paid back if a bank fails; and making it easier to comply with post-crisis rules.»

Given the growing scarcity of available collateral among bond dealers, a collapse in repo liquidity, and increasing frequency of delivery failures, all of which is shorthand for a bond market that is becoming less liquid — it seems that QE has begun to create, rather than relieve, meaningful constraints.

3) Buying individual bonds is a relatively inefficient and less liquid venture than say buying individual stocks for instance, unless you have some real size.

The chocolate needs to bond with the fat in the cream and from there you can add less rich liquids.

That happens because as thermal energy becomes ever less available, chemical bonds within the liquid constrain the atomic motion more and more.

The authors suggest that wealthy black parents are less able to transfer wealth to their kids than their white counterparts, perhaps, due in part to having fewer liquid assets such as stocks, bonds and savings, which can be passed down more easily to the next generation.

Privately issued securities are restricted securities that are not publicly traded, and may be less liquid than those that are actively traded, such as U.S. Treasurys and conventional corporate bonds.

Most bond investors take a buy - and - hold strategy, partially because bonds are less liquid than stocks but also because the income characteristics of bonds are attractive over the long - term.

Bond funds seem to be most populous in the.15 % fee range, where many different, specialized bond funds begin to find a competitive balance between lower costs and less liquid fixed - income markBond funds seem to be most populous in the.15 % fee range, where many different, specialized bond funds begin to find a competitive balance between lower costs and less liquid fixed - income markbond funds begin to find a competitive balance between lower costs and less liquid fixed - income markets.

Alternative investments, including commodities, involve a higher degree of risk and can be more volatile and less liquid than shares and bonds.

Vehicles to consider: A mix of highly liquid accounts, such as money market funds, and less - liquid options, such as CDs or short - duration high quality conservative bond funds

The distressed segment of the junk bond market has the most concentrated trading activity indicating that the majority of bonds in that segment are significantly less liquid.

The bond market is much less liquid than the stock market.

And third, mortgages are less liquid than public bonds, and require a longer - term commitment.

Investing in less liquid items that grow on their own, like stocks, bonds, interest bearing accounts... these are much more efficient ways to build wealth.

Speaking of Vanguard, it's making its second foray in the world of liquid alts (after Vanguard Market Neutral) with Vanguard Alternative Strategies Fund seeks to generate returns that have low correlation with the returns of the stock and bond markets, and that are less volatile than the overall U.S. stock market.

In addition, agency bonds issued by Federal Government agencies are less liquid than Treasury bonds and therefore this type of agency bond may provide a slightly higher rate of interest than Treasury bonds.

While illiquid bonds had slightly higher credit spreads and directionally higher average returns, portfolios that tilt toward (away from) less (more) liquid bonds exhibit considerably higher levels of volatility.

The trading left the fund with a slightly higher percentage of holdings in less liquid assets, such as corporate bonds, bank loans and asset - backed debt.

While the market is large, it is far less liquid than the equity market, with bonds trading far less frequently, and typically with a much higher bid / offer spread relative to underlying volatility.

Less liquid corporate and municipal bonds can have wider spreads because the pool of potential buyers is smaller.

It is interesting to note that the S&P BSE India Corporate Bond Index had lower risk than sovereign bonds during all periods studied; this could probably be explained by the Indian corporate bond characteristics, which are relatively fragmented and less liquid than the sovereign boBond Index had lower risk than sovereign bonds during all periods studied; this could probably be explained by the Indian corporate bond characteristics, which are relatively fragmented and less liquid than the sovereign bobond characteristics, which are relatively fragmented and less liquid than the sovereign bonds.

For instance, corporate bond markets seem to be less liquid than in the past.

Nomura Securitiea» Siobhan Morden, head of Latin America fixed income strategy, has written about the potential for a glut of Argentina bonds, and commented this week that second - tier provinces look less attractive than bonds issued by the Province of Buenos Aires, which includes the city of that name and is the most liquid provincial market.

Now, when I was a bond manager, because my client had a large amount of long noncallable liabilities, I bought less liquid debts when I received adequate compensation to do so, but not more than my client's balance sheet could tolerate.

The market for municipal bonds may be less liquid than for taxable bonds.

High - yield bonds can sometimes be less liquid than investment - grade bonds, depending on the issuer and the market conditions at any given time.

The current model holds that liquid water should be similar to ice but less structured since heat creates disorder and breaks bonds.

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.