Not exact matches
As we get further along in the business cycle, I tend to keep the
maturities in my
corporate bond exposure a little shorter
than I would earlier in the cycle.
For «A» rated
corporates, the spread over government
bonds of comparable
maturity is currently about 100 basis points, which is noticeably wider
than a couple of years ago (Graph 32).
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.
Namely,
bond coupon payments are determined by market interest rates, the type of issuing entity (government
bonds pay lower coupons
than corporate bonds because of lower default risk), the creditworthiness of the issuing entity (AAA companies pay lower coupons
than CCC companies), and the
maturity of the
bond, which we will talk about next.
You will also find higher coupon rates on
corporate bonds than on U.S. treasury
bonds with comparable
maturities.
The index is designed to measure the performance of U.S.
corporate bonds that have a
maturity of greater
than or equal to 1 year and less
than 10 years.
We love high yield
corporate bonds; they pay a lot more interest
than treasuries and also because these are not the greatest borrowers — I'm not talking little companies; think CitiBank and other very big companies that don't have a pristine credit rating — they can not lend money out very long so the
maturities of our high yield
bond fund is closer in.
an indicator of how long a security position or lot was held; possible values are Long: held for more
than 1 year; Non-Reportable: lot or position was closed as the result of a transaction other
than a sale; no reportable gain / loss was reported, the holding period and resulting term are not reported; Short: held for 1 year or less; and Unknown: Fidelity does not know how long the position or lot was held; this state typically exists because the shares were transferred to Fidelity from another institution and the holding period prior to the transfer was not communicated; for fixed - income securities, this is the period of time from the security's issue date until the
maturity date; for example, for a 10 - year
corporate bond the term is 10 years
the relationship between interest rates and time, determined by plotting the yields of all or as many
bonds of similar credit quality (eg: Treasuries or AA - rated
Corporates), against their
maturities; yield curves typically slope upward since longer
maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed - income product types and credit qualities; these are based on
bonds that Fidelity recognizes and are not equal to the entire universe of
bonds, which is significantly larger
than the number of
bonds offered by Fidelity on any given day
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.
The BofA Merrill Lynch Index tracks the performance of U.S. dollar - denominated investment grade government and
corporate public debt issued in the U.S. domestic
bond market with at least 1 year and less
than 10 years remaining
maturity, including U.S. treasury, U.S. agency, foreign government, supranational and
corporate securities.
Through its investment in Vanguard Total International
Bond Index Fund, the Portfolio also indirectly invests in government, government agency,
corporate, and securitized non-U.S. investment - grade fixed income investments, all issued in currencies other
than the U.S. dollar and with
maturities of more
than 1 year.
This index measures a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States — including government,
corporate, and international dollar - denominated
bonds, as well as mortgage - backed and asset - backed securities, all with
maturities of more
than 1 year.
However,
corporate bonds have a comparatively shorter
maturity period that government
bonds and pays more interest
than government
bonds as well.
The index is designed to measure the performance of U.S.
corporate bonds that have a
maturity of greater
than or equal to 10 years.
The Index includes publicly issued U.S. dollar denominated, non-investment-grade, fixed rate, taxable
corporate bonds that have a remaining
maturity of less
than 5 years regardless of optionality, are rated between Caa3 / CCC - / CCC - and Ba1 / BB + / BB + using the middle rating of Moody's Investors Service, Inc., Fitch, Inc., or Standard & Poor's, Inc., respectively, and have $ 350 million or more of issuance.
Premium refers to a price above the par value (price at
maturity) and the interest rate is lower
than the coupon of the
bond at par.E.g.: Company ABC
Corporate 2015 6.50 trading at $ 105 (6.20 % yield).
With a portfolio composed of investment - grade debt from
corporate, sovereign and supranational issuers with three - year maximum
maturities, the iShares 1 - 3 Year Credit
Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield
than comparable all - Treasury funds, but it does have a marginally higher credit risk.
Discount refers to a price below the par value (price at
maturity) and the interest rate is higher
than the coupon of the
bond at par.E.g.: Company XYZ
Corporate 2015 6.50 trading at $ 95 (6.84 % yield).
This year investors who followed the MFIP were led to shorten
maturities (therefore lowering their interest - rate risk) and also to use higher - yielding
corporate bonds rather
than Treasuries or mortgage - backed securities (thereby keeping lower duration and less interest - rate risk).
The Vanguard Short - Term
Corporate Bond ETF (NASDAQ: VCSH) yields 1.8 %, while the iShares Short
Maturity Bond ETF (BATS: NEAR) yields less
than 1 %.
RCSB will include government and
corporate bonds with
maturities of less
than five years, making it similar to iShares» XSB and Vanguard's VSB.
All in all, in a market where banks have only recently returned to issue new leveraged loans, investors are poised to pick up the slack and achieve returns greater
than a similar
maturity mix of
corporate bonds with less intermediate risk.
Yields on municipal
bonds are often lower
than corporate or Treasury
bonds with comparable
maturities, because they have important tax - free advantages.
A low cost ETF that seeks to offer precise, comprehensive exposure to US
corporate bonds that have a
maturity greater
than or equal to 10 years
Through its ownership of the two
bond funds, the Portfolio also indirectly holds a mix of
bonds — including government, government agency,
corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated
bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with
maturities of more
than 1 year.
The percentages of the Portfolio's assets allocated to each Underlying Fund are: Vanguard ® Total
Bond Market II Index Fund 60 % Vanguard ® Total International Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 y
Bond Market II Index Fund 60 % Vanguard ® Total International
Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 y
Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two
bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 y
bond funds, the Portfolio indirectly holds a mix of
bonds — including government, government agency,
corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated
bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with
maturities of more
than 1 year.
The Index measures a wide spectrum of public, investment - grade, taxable fixed income securities in the United States — including government,
corporate, and international dollar - denominated
bonds, as well as mortgage - backed and asset - backed securities — all with
maturities of more
than 1 year.
Through its ownership of Vanguard ® Total International
Bond Index Fund, the Portfolio indirectly owns government, government agency,
corporate, and securitized non-U.S. investment - grade fixed income investments, all issued in currencies other
than the U.S. dollar and with
maturities of more
than 1 year.
The Index includes publicly issued U.S. dollar denominated, non-investment grade, fixed - rate, taxable
corporate bonds that have a remaining
maturity of at least one year, but not more
than fifteen years, regardless of optionality; are rated high - yield (Ba1 / BB + / BB + or below) using the middle rating of Moody's Investors Service, Inc., Fitch Inc., or Standard & Poor's Financial Services, LLC, respectively; and have $ 500 million or more of outstanding face value.
Most
corporate bonds pay interest semi-annually, so if the
bond's
maturity date is more
than 6 months from the date I buy the
bond, I'll get an interest payment before
maturity as well.
Determined by a formula that measures the change in the U.S. Treasury Constant
Maturity yield plus the applicable Barclays Capital U.S.
Corporate Bond Index, the MVA will add or deduct an amount from your annuity or from the withdrawal amount you receive.4 A MVA only applies when the policyowner surrenders or makes a withdrawal from the contract that is greater
than the surrender - charge - free withdrawal amount during the surrender charge period.