Sentences with phrase «low investment grade corporates»

We have begun edging back into junk bonds and low investment grade corporates.»

Not exact matches

This has the potential to notably lower leverage in the corporate market, and particularly in the investment - grade corporate market.

More broadly, he says that while corporate credit may benefit from aspects of tax reform (i.e., better earnings growth from the corporate tax cuts, modestly lower investment grade supply as repatriation becomes reality), he does not see tax cuts at this point in the cycle as a bullish driver of credit spreads.

The average investment - grade (high - yield) bond trades on less than 32 % (36 %) of days over the prior six months — liquidity in corporate bonds was considerably lower than in traditional listed equity markets.

In recent months, the yield on US corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the yield on government debt, dropping within striking distance of the lows seen post the 2008 financial crisis.

Sales volume for new investment - grade corporate debt is at its lowest level since 2014.

Companies with excellent to low credit ratings issue investment - grade corporate bonds, which have lower interest rates because of the safety of the investment.

They're taking advantage of low interest rates on euro - denominated issues after the European Central Bank's decision to start buying investment - grade corporate bonds in June — part of its economic stimulus program.

TORONTO, APRIL 9, 2018 — Franklin Templeton Investments Canada today announced a management fee reduction for Franklin Liberty Canadian Investment Grade Corporate ETF (FLCI) to provide Canadians with an actively managed, investment grade corporate ETF at a lInvestment Grade Corporate ETF (FLCI) to provide Canadians with an actively managed, investment grade corporate ETF at a loCorporate ETF (FLCI) to provide Canadians with an actively managed, investment grade corporate ETF at a linvestment grade corporate ETF at a locorporate ETF at a lower cost.

In a taxable account, he suggests using provincial or investment - grade corporate bonds for each rung, since Government of Canada bonds have lower yields.

None of the long term problems that the market faces have changed, but neither has the relatively low yields of investment grade corporate debt.

The back - tested results of the 17 - year period ending Feb. 28, 2017, show that the S&P U.S. High Yield Low Volatility Corporate Bond Index may offer an intersection that bridges the volatility gap between the high - yield and investment - grade bond sectors, with increased return efficiency.

In today's low rate environment, the investment grade corporate bond market in the US and abroad offers a way to pick up additional yield and diversification, while maintaining a relatively low level of risk.

Higher - investment grade corporate bonds, such as those with «AAA» credit ratings, tend to have very low default risk.

The fact that the S&P U.S. High Yield Low Volatility Corporate Bond Index is located above the straight line linking the investment - grade and high - yield bond sectors demonstrates that the index outperforms the return frontier established by the two bond sectors.

As expected, the S&P U.S. High Yield Low Volatility Corporate Bond Index sat between the high - yield and investment - grade bond sectors in the volatility spectrum.

Unlike Treasuries and investment grade corporates, the high yield market as measured by the S&P U.S. Issued High Yield Corporate Bond Index touch a low point for yield earlier in the month at a 5.87 % on October 6th.

Ideally, you want to choose a combination of low - cost funds that will give you exposure to stocks of all types and styles (domestic, foreign, large, small, growth and value) as well as bond funds that track the broad investment - grade bond market (government and corporate issues in a range of maturities).

Lower - rated credit indices such as the S&P U.S. High Yield Corporate Bond Index and the S&P / LSTA U.S. Leveraged Loan 100 Index have not greatly outpaced investment grade corporates YTD, given the increase in risks.

These three ETFs carry low risks but potentially high rewards Simon Maierhofer on the contrarian nature of consumer staples, long - dated Treasuries and investment - grade corporate bondsSimon Maierhofer on the contrarian nature of consumer staples, long - dated Treasuries and investment - grade corporate bonds.

They can also reduce their exposure to bank failure by diversifying out of bank deposits into stocks and investment grade corporate bonds or a broad bond index through use of low fee exchange traded funds.

And for that reason, we entered 2015 with our lowest - ever allocation to investment - grade corporate bonds.

Yields of Canadian corporate investment - grade and high - yield bonds have been trending lower (up in price) since the beginning of March 2016.

Jettison a lower quality junk bond ETF for a higher quality investment grade corporate bond ETF like iShares Intermediate Credit (CIU).

The fund offers investors low - cost exposure to the broad U.S. investment - grade corporate bond market through a single fund.

Suppose you own a corporate bond rated BBB (lower - investment - grade quality) that is yielding 7.00 % and you find a triple - A-rated (higher - investment - grade quality) corporate bond that is yielding 6.70 %.1 You could swap into the superior - credit, triple - A-rated bond by sacrificing only 30 basis points (one basis point is 1 / 100th of one percent, or.01 %).

Investment - grade corporate bonds, as measured by the S&P U.S. Issued Investment Grade Corporate Bond Index, are up 0.09 % for the month, while lower quality high - yield bonds represented by the S&P U.S. Issued High Yield Corporate Bond Index are up 0.7 % on tcorporate bonds, as measured by the S&P U.S. Issued Investment Grade Corporate Bond Index, are up 0.09 % for the month, while lower quality high - yield bonds represented by the S&P U.S. Issued High Yield Corporate Bond Index are up 0.7 % on tCorporate Bond Index, are up 0.09 % for the month, while lower quality high - yield bonds represented by the S&P U.S. Issued High Yield Corporate Bond Index are up 0.7 % on tCorporate Bond Index are up 0.7 % on the month.

An investment grade is a rating that indicates that a municipal or corporate bond has a relatively low risk of default.

We are in a position where yields on short Treasuries are nonexistent, investment grade and junk yields are low for corporates, and equities are rallying, but there is little growth, or some shrinkage in productive capacity.

Credit - sensitive categories — such as investment - grade corporate and high - yield bonds — were aided by the backdrop of faster growth and rising earnings, and long - term U.S. Treasuries posted gains amid continued low inflation.

An investment grade rating ensures that credit risks are still pretty low, although corporate bonds won't perform as steadily as government bonds if the market ever swoons again like it did in late 2008.

Corporate bonds rated Baa or triple - B, the low end of investment grade by Moody's and Standard & Poor's designations, offer the biggest yield premium since the early 1930s, notes RBC Capital Markets.

Government bonds are a traditional way of investing in fixed income, however, with interest rates likely to rise in Canada in the not too distant future and to continue rising in the U.S., forcing down the market value of old bonds with low interest, they could buy investment grade corporate issues with maturities of five to ten years.

Investment - grade corporate bonds also benefitted from relatively low volatility moving to the top - three performing asset classes on a risk - adjusted basis.

If investors grow anxious about holding low - quality bonds, they may trade them for the higher - quality debt, such as government bonds and investment - grade corporate bonds.

Corporate bonds with low credit ratings are called high - yield bonds, because they have higher yields than investment grade bonds.

2) I have exited junk bonds, and even low investment - grade corporates.

6) My, but the high yield market and lower investment - grade corporate markets have moved higher.

If investors grow anxious about holding low - quality bonds, they may trade them for the highest - quality debt, such as U.S. Treasuries and investment - grade corporate bonds.

According to the U.S. Securities and Exchange Commission, the corporate bonds are generally divided into two categories: investment grade bonds, which are safer but have lower interest rates, and high - yield bonds, which have higher interest rates but are issued by companies that have lower credit ratings.

Similarly, investment grade treasuries are witnessing higher highs and higher lows (bullish) whereas iShares iBoxx High Yield Corporate (HYG) has seen lower highs and lower lows (bearish).

The premium paid on CMBS rated BBB -, the lowest investment - grade level before junk, has tumbled 105 basis points over the last month, more than 10 times the spread compression of investment - grade corporate bonds, Edward Reardon and Simon Mui wrote in a note dated Aug. 2.

In October, U.S. Treasury yields declined 23 basis points on a year - over-year basis, while corporate debt on the low end of the investment grade spectrum increased more than 65 basis points, nearly a 90 basis point increase in the spread between U.S. Treasuries and the low - end of investment grade corporate bonds.