Sentences with phrase «like high yield bonds»

iShares iBoxx High Yield (HYG)-- «A lot of the time, especially when you get into something like high yield bonds, you're better off sticking to mutual funds,» Jason said.

However, the yields of Treasuries are paltry while credit instruments like high yield bonds exhibit equity - like risk, albeit with potentially higher yields.

Preferreds have little to no exposure to energy and may help investors diversify their risk away from energy sensitive assets like high yield bonds.

However, the yields of Treasuries are paltry while credit instruments like high yield bonds exhibit equity - like risk, albeit with potentially higher yields.

Not exact matches

Bond investors like mutual funds and pension funds hope to buy securities with comparatively higher yields than other asset - backed debt that could also provide diversification benefits.

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

In a zero - interest rate world (Figure 7), these provide yields that are much higher than those found in more conventional investments like U.S. Treasury bonds or money market accounts.

Like most sectors of the fixed - income market, municipal bonds struggled in the first quarter as yields climbed higher.

With Group of Seven (G7) sovereign bond yields at historically low levels, some income - seeking investors have turned to higher - volatility securities like dividend - paying stocks in an attempt to capture additional income.

However, note that some fixed income investments, like high - yield bonds and certain international bonds, can offer much higher yields, albeit with more risk.

Another statistic courtesy of Mike Goldstein is that utility stocks, a high - yield group I call the most bond - like of all stocks, today sell for almost the same P / E multiple as the S&P 500.

High yield bonds rank low enough in seniority that they behave a lot like equity.

Note: HYG the $ 20bln high yield ETF yields 5.13 % in comparison, hence you might need to buy an out of favor sector like bricks and mortar retail, otherwise non-rated is likely where you will find > 7 % in the US domestic bond market.

Those who are purchasing bonds like dropping bond prices because it means that they can get higher yields.

Stocks with a history of consistently growing their dividends have historically tended to perform well and exhibit less volatility in a rising rate environment, while high yielding dividends, often considered «bond - like proxies,» have tended to be more vulnerable (due to their high debt levels) and have historically followed bond performance when rates rise.

But I am concerned that late - cycle entrants into risk assets like stocks and high - yield bonds are taking a leap of faith at a time when there is less room for markets to move up and growing risks of them falling back.

Despite the 10 - year US Treasury bond only yielding roughly 2.2 %, that's still much higher than 10 - year Treasury bonds from countries like France (0.6 %), Germany (0.3 %), Japan (0.0 %), and Switzerland, where you actually lose money lending -LRB--0.2 %).

In this privately printed income blueprint, I show you why high - tech income pools like these are giving investors a real alternative to the low - yield bonds and sputtering REITs that many people have looked to in the past.

Currently, BBB - rated bonds are equal to 45 % of the entire outstanding high - yield market, which has increased from 30 % a decade ago.3 Since BBB is the lowest investment - grade bond rating, the risk is that many poor credits will fall, like angels, from the investment - grade into the high - yield universe.

May also invest in other high - yield assets, like bank loans, preferred securities, and convertible bonds.

A bullish bias is based largely on Bond yields bottoming out, NOT TOPPING, along with Advance / Decline being back at new all - time highs while various former underperforming laggard sectors like Healthcare, have begun to outperform.

Preliminary meetings with investors have pitched the IPO as a bond - like security, paying a higher - than - average dividend yield.

Eventually, they'll have to turn to assets like stocks, commodities and higher - yielding bond products that carry greater return — and greater risk.

Depending on where the stock market and bond market are at the time, I'd like to deploy $ 300,000 of the proceeds in low risk investments that have a high chance of producing a 4 % gross yield.

As risky assets like equities and high yield bonds have come under pressure, gold has rallied roughly 4 % (source: Bloomberg).

Like equity, the value of a high yield bond is tied to the fate of its corporate issuer.

Sure, you can move it into riskier investments like bonds or even high yield bonds to try to juice your returns but a move -LSB-...]

Other bond markets, like the high yield corporate and senior loan markets often have high concentrations of debt maturing in specific years in the near future — often referred to as a «maturity cliff».

Income - seeking investors may need to consider exploring riskier areas of the bond market like high yield and EM bonds.

Those who are purchasing bonds like dropping bond prices because it means that they can get higher yields.

It sounds like possible replacement for high risk / yield bonds.

You also get to use tax - inefficient investments like REITs and high - yield bonds without having to worry about the tax implications.

Here's my take: risk arb is like being a high yield bond manager.

Many bond managers like to own RMBS for its high credit quality, liquidity, and attractive yields, but the problem is this: when interest rates move, the RMBS does what you don't want to see happen.

Because they are more equity - like, high yield bonds have intrinsic risk that is independent of the level of yields in high quality bonds, the leading example of which are Treasury bonds.

Starting in 2008 and into 2009, high yield corporate bonds (otherwise known as junk bonds) saw huge drops in price under the premise the America was going to see a massive wave of corporate defaults, the likes of which we hadn't seen since the Great Depression.

If rates rise and the economy slows, the areas of the bond market that have done well lately, like higher - yielding bonds, could come under pressure.

As of the first quarter of 2012, Turkey had a public debt balance equal to 43 % of annual GDP, making it one of the better financed governments in all of Europe (see how the fiscal strength of many emerging markets like Turkey in High Yield International Bond ETFs can deliver strong returns with low correlation).

Looking both within and outside of the benchmark, the Fund seeks relative value opportunities across traditional investment - grade and high - yield bond sectors, also including nontraditional asset classes like non-U.S. sovereign and corporate debt, convertibles, and floating - rate loans.

Higher rates of inflation and rising levels of correlations between the changes in bond yields and stock yields don't sound like a good combination, and it turns out that they're not.

Although most investors diversified beyond this model and incorporated small caps, foreign stocks, high yield bonds, and perhaps something more exotic like REITs or commodities, a simple mix of 60 % S&P 500 and 40 % Barclays U.S. Aggregate Bond is often the shorthand definition of a balanced portfolio.

BTW — I heard James Grant speak last week, and he is bearish on money and bullish on high yielding corporate bonds, but I du n no — that looks like threading a needle.

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.

High - yield corporate bonds have produced equity - like returns with less risk.»

Like Preferreds, the difference in yield between the S&P U.S. Issued Investment Grade Corporate Bond Index and the S&P U.S. Issued High Yield Corporate Bond Index is 2.97 % (5.87 % vs 2.90 %), up from a 1.97 % back at the end of yield between the S&P U.S. Issued Investment Grade Corporate Bond Index and the S&P U.S. Issued High Yield Corporate Bond Index is 2.97 % (5.87 % vs 2.90 %), up from a 1.97 % back at the end of Yield Corporate Bond Index is 2.97 % (5.87 % vs 2.90 %), up from a 1.97 % back at the end of June.

As higher yields become available in safer vehicles like government bonds, CDs (although you have protection with Flex CDs), money markets, etc., and interest rates are perceived to continue upward, cash leaves high yield investments, driving the yields higher but sending the share price lower.

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

You could choose high - yielding Canadian stocks like the banks or BCE or just use 2 - year GICs or a short - term bond ETF like the Vanguard Canadian Short - Term Bond ETF (VSB / Tbond ETF like the Vanguard Canadian Short - Term Bond ETF (VSB / TBond ETF (VSB / TSX).

Although there has been a variety of writers and talkers like myself who have talked about «canaries in the coal mines» — high yield bonds, small caps, commodities, foreign / emerging stocks — the discussions are largely dismissed when U.S. large - caps turn upward.

Investment - grade corporate bonds have historically been a complement to risk assets like stocks and high yield bonds.