Sentences with phrase «lower credit quality»

High - yield bonds are issued by corporations with lower credit quality ratings.

High yield bonds are subject to additional risks, such as increased risk of default and greater volatility because of lower credit quality of the issues.

Trying to sell a long maturity, low credit quality bond in a weak market is a worst - case scenario because you have to shop extensively just to get a bid.

High - yield bonds are issued by corporations with lower credit quality ratings.

These funds invest primarily in lower credit quality securities, including convertible securities.

The inclusion of lower credit quality investment grade bonds may introduce additional risk for the portfolio.

If anything lowers the credit quality of the bonds, the price is negatively impacted immediately.

As we shall later see, those with lower credit quality behave more like stock.

This can be low credit quality loans, jumbo or large loans, or commercial loans, among others.

Bonds issued by companies with low credit quality are high - yield bonds, also called junk bonds.

These issuers must pay a higher interest rate to attract investors to buy their bonds and to compensate them for the risks associated with investing in organizations of lower credit quality.

Investors and fund managers search for yield, extend maturities, reach for lower credit quality and shift assets from short term floating rate money market funds to bonds, bond funds and similar investments.

Higher levels of risk are generally associated with longer - term bonds when interest rates are currently low and deemed likely to go up in the future, as well as low credit quality bonds.

Credit ratings for bonds below these designations («BB», «B», «CCC», etc.) are considered low credit quality, and are commonly referred to as «junk bonds.»

Bond market leadership rotates as interest rates rise and fall, as bonds with higher or lower credit quality gain market favor, and as global currencies fluctuate.

To compensate for lower credit quality, the issuer of the instrument (call it the borrower) may offer you a slightly higher interest as a compensation for taking the higher risk.»

Seeks to generate higher levels of income by having the flexibility to invest a portion of the portfolio in lower credit quality investment - grade bonds2

But rising delinquencies have made it harder to raise funds for fresh loans, prompting the sector to review its business model, which tends to attract borrowers with low credit quality.

However, because of low credit quality, millions more will not be able to re-enter in the coming decade.

There are times when miss - pricings occur, just as with equities, and higher credit quality bonds sell at a discount to lower credit quality bonds for any number of external issues (poor earnings, industry concerns, investor fear, etc).

Behind this call is her expectation that this current era of loose monetary policy and tumbling interest rates may be coming to an end, which would put more pressure on companies with low credit quality.

During a presentation on Tuesday, Subramanian shared a chart showing how investors had actually been paying up for companies with low credit quality.

The lower the credit quality, the higher the risk and the higher the potential return.

The B tranche has lower credit quality and thus has a higher yield than the senior tranche.

My question is, is there any plans to sort of reach down to some of the lower credit quality borrowers out there?

However, those with a longer - term horizon should take note of historically tight spreads, rising corporate debt and lower credit quality.

If rates do rise, high duration, low credit quality and long maturity bonds will get dinged the most.

NOTE: High - yield bonds are subject to additional risks, such as increased risk of default and greater volatility, because of the lower credit quality of the issues.

The result is a selection of bonds with higher volatility, lower credit quality, and higher yield than the broader high - yield market.

By loaning money to a company with lower credit quality, investors face a higher risk of not receiving all of the promised interest and principal payments.

The high - grade bond market in the U.S. already has the lowest credit quality mix since the 1980s, according to CreditSights, and there are signs investors are getting nervous.

• Lowering credit quality.

Funds with a low credit quality are those whose weighted - average credit quality is determined to be less than «BBB -»; medium are those less than «AA -», but greater or equal to «BBB -»; and high are those with a weighted - average credit quality of «AA -» or higher.

However, those with a longer - term horizon should take note of historically tight spreads, rising corporate debt and lower credit quality.

A quality swap is a type of swap where you are looking to move from a bond with a lower credit quality rating to one with a higher credit rating or vice versa.

High yield bonds have lower credit quality and carry a higher risk of default.

This is important because a big part of what was happening in 2008 was that the new debt being issued was being issued to people with low credit quality.

Hybrid - Market - Oriented for stocks, High / Medium / Low Credit Quality, Moderate Interest Rate Sensitivity for bonds, and High Quality, Short Maturity for money market.

Funds with a low credit quality are those whose weighted - average credit quality is determined to be less than «BBB -», medium are those less than «AA - ``, but greater or equal to «BBB - ``, and high are those with a weighted — average credit quality of «AA - «or higher.

A balance must be struck between limiting risk using shorter duration or higher credit quality bonds versus maximizing investment yield with longer duration or lower credit quality bonds.

Credit strategies were positive as spreads continued to tighten led by sectors with lower credit quality.

Instruments of lower credit quality are riskier than those of higher credit quality, thus yielding higher expected returns.

High yield bonds are taxable corporate issues with lower credit quality, which means the risk of default is greater.