Sentences with phrase «lower quality bonds»

Lower quality bonds are generally more sensitive to these changes than higher quality bonds.

Alternatively, a smaller portion of the bond portfolio is allocated to «high yield» management, which is exclusively invested in lower quality bonds.

Our fixed income strategy looks at corporate and government bond funds, higher and lower quality bonds funds and global and domestic bond funds.

We can (and have) capitalized on a wide range of opportunities in the bond market, including in higher and lower quality bonds, strategic and high - yield bonds, floating - rate securities and even total - return funds, which aren't fully invested in bonds.

The long end is controlled by the economy as a whole, and its rate of growth, while lower quality bonds and loans also respond more to where the credit cycle is.

Yes, in a different environment, a leveraged purchase of lower quality bonds can be a great idea, though I tend to purchase the equity instead.

This is a market - based estimate of the amount of fear in the bond market Bass - rated bonds are the lowest quality bonds that are considered investment - grade, rather than high - yield.

Typically, the time to buy low quality bonds is when everyone is scared to death, the VIX is over 40, and realized defaults are high.

The fund is also subject to foreign investment risks as well as low quality bond risks.

A better bet has been high - yield bonds, which also invest in low quality bonds, but because they are not adjustable, they have higher coupons, or payout rates.

Prices Yields on low quality bonds go lower as a result.

Spreads in the thousands of basis points are unusual even for these low quality bonds.

Not exact matches

«If you're looking to get 4 % or 5 % you're not necessarily going to get that with bonds these days unless you're going to lower the credit quality.

For example, some investors may have taken on more risk in their portfolios in recent years by moving into lower - quality bonds or dividend stocks, in an attempt to generate additional yield.

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

These investors may have to accept lower long - term returns, as many bonds — especially high - quality issues — generally don't offer returns as high as stocks over the long term.

Higher - quality bonds offer another advantage as well: These investments typically come with lower transaction costs, which can help manage the expenses associated with this strategy.

Spreads on the lowest quality segment of the «junk» bond category, «C» rated bonds, have narrowed by an extraordinary 30 percentage points since late 2001, to around 5.5 percentage points.

Open Europe, a Brussels - based think tank, estimates that through government bond purchases and liquidity provisions to banks, the ECB's exposure to Greece, Portugal, Ireland, Italy, and Spain has reached 705 billion euros, up from 444 billion euros in early summer - a 50 percent increase in six months (their note was published prior to the December 21 three - year LTRO, which likely further boosted lower quality collateral).

If you're looking for safety and a lower probability for losses during stock market corrections, high quality bonds should still prove to help more often than not.

, but I think it's a mistake for risk averse or diversified investors to completely give up on high quality bonds because they're worried about poor returns from low yields.

The same could be said for lower - grade, dollar - denominated bonds except the improvement in credit quality brought from accelerating economic growth will partially protect these bonds from the full extent of the losses suffered by high - grade bonds.

The investor should note that vehicles that invest in lower - rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.

Yet low nominal gross domestic product growth and aging populations argue for lower bond yields than in the past — and sustained demand for high quality bonds.

However, munis may pay lower yields than Treasury or corporate bonds of similar maturity and quality, and are subject to the same rate risks as other bonds.

High Yield bond portfolios concentrate on lower - quality bonds, which are riskier than those of higher - quality companies.

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.

Corporate bond spreads have moved lower over the past six months to around five - year lows, suggesting that concerns over credit quality are not hampering access to external funding.

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

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

These are very low - cost wraps and ring slings that look as great as they feel and can provide you with plenty of quality bonding time with your child while babywearing.

Always remember, higher the coupon / interest rate on the bond; lower is its inherent credit quality.

For example, the yields on CCC - rated high yield bonds are quite low on a 10 - year basis given the historically higher default rates in this low - quality portion of the market.

These bonds have done little in 2015 due to the low yields of these high quality and often short term bonds.

Low credit quality bonds are cheaper and can produce higher returns, but they have a higher risk of default.

High yield bonds are better known as junk bonds because the credit quality of the underlying bond issuer is low.

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.

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.

Bonds that are higher - quality (more likely to be paid on time) generally offer lower interest rates.

An option could be to invest in an ETF with short term bonds (e.g. 1 year) with AAA credit rating (high quality, so very low default rate).

When risky assets get very correlated with each other, and the only alternative game to play is buying high quality bonds, it is an unstable situation that portends lower risky asset prices.

With Treasury yields so low, most high quality bonds are not attractive now.

In the current low - rate environment, an Ally 5 year CD has a much better risk / return profile than a high - quality bond mutual fund.

Higher Credit Quality, Lower Volatility and Comparable Yields Preferreds have significantly higher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds proviQuality, Lower Volatility and Comparable Yields Preferreds have significantly higher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds provideLower Volatility and Comparable Yields Preferreds have significantly higher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds proviquality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds providelower volatility and can offer similar yields with potential tax advantages on income as some preferreds provide QDI.

While high quality ratings often imply lower yields, the S&P International Corporate Bond Index has a weighted average yield - to - worst of 2.16 %, which is higher than the average yields of U.S. treasuries and comparable to the 2.26 % yield of the S&P 500 AAA Investment Corporate Bond Index.

On the other hand, floating rate loans tend to be lower - quality bonds with higher default risk.

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

Some purchase highly rated bonds that may pay the fund a lower interest rate but are considered less risky, while others focus on lower - quality, higher - yield bonds.

Lower ‐ quality fixed income securities, known as «high yield» or «junk» bonds, present greater risk than bonds of higher quality, including an increased risk of default.

The low interest rates that the Fed supports for high quality bonds indirectly attempts to overleverage the corporate sector in the same way that they overlevered the consumers through housing 2003 - 2007.