The rating agency maintains a B3 corporate rating on BJs, which is
not investment grade.
But what is or is
not investment grade is determined by the ratings agencies, who are still using historical models to rate newly issued papers.
Bonds that are
not investment grade are much more likely to default than investment - grade bonds.
Not exact matches
At the moment, the ECB can
not purchase Greek bonds because they do
not have an
investment grade rating.
Hire an
investment adviser that doesn't need the BICE to deliver fiduciary -
grade investment advice.
My team in Fidelity Capital Markets evaluated the implications for issuers, and we didn't find many
investment -
grade issuers that would be affected by the House plan.
Since its 2014 high on December 29, the S&P 500 Index has gained 1.5 % (
not including a fraction of a percent in dividends), the Dow Industrial Average has gained 1.3 %, the Dow Transportation Average is down -5.8 %, the Dow Utilities Average is down -8.9 %, market breadth has churned sideways, and
investment grade corporate spreads are flat (though junk spreads have come in about two - tenths of a percent).
In fact, the bulk of BKLN's portfolio is below
investment grade and debt from firms in bankruptcy is
not ruled out either.
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.
Don't fall for empty promises and work only with dealers that sell LMBA - approved
investment -
grade precious metals.
Property and casualty insurance companies invest a substantial percentage of book value and policyholder «float,» which is money they hold until policy claims are paid out but do
not own, in
investment -
grade bonds, particularly corporate bonds.
On the other end of the scale, Schwab will only let you search
investment grade bonds online (you must call the bond desk to trade junk), will only let you buy online (you must call to sell), and does
not allow limit orders at all.
For example, Fidelity will allow you to search both
investment grade and junk bonds, show you the number of bonds available at both the bid and ask price, and will even allow you to submit a limit order (although you can
not put in a good until cancelled order or one that is more than a small amount away from the current bid / ask).
The «model» behind our largest
investment required nothing more than sixth
grade math, and a napkin —
not a sophisticated spreadsheet capable of more numbers than I'm capable of counting.»
As referenced above, Kite is
not immune to weaker tenants like Toys - R - Us and Bed, Bath, & Beyond; however, many of Kit's top tenants are
investment grade - rated:
At its peak, Teck had more than $ 7 billion in debt outstanding, which caused its leverage ratio to rise, resulting in the company
not only losing its
investment -
grade credit rating but getting downgraded deep into junk territory.
The bottom line of Draghi's answers was that the ECB would only buy government bonds rated lower than
investment grade if the countries are in a bailout programme and the programme is
not in a review period.
The bonds are all
investment -
grade and short - term so don't go looking for yield here.
It offers a proxy for direct
investment in institutional
grade commercial property with its attractive yield based characteristics for the majority of the institutional and private investor universe which, until now, has
not had a mechanism to benefit from the asset class.
Bloomberg Gadfly's Lisa Abramowicz (follow her on twitter here) outlined in a recent piece The Credit Boom that Just Won't Die the insatiable demand for
investment grade credit.
For example, investors seeking exposure to
investment grade bonds know that an index
investment grade bond ETF will only hold these bonds, and won't dip into high yield securities.
The value of a stay at home mom must
not be
graded on the cleanliness of her home, it shall be valued for their selfless
investment in their children.
«The problem with using
grade school math to analyze an economic development project of this magnitude is that it doesn't take into account the multi-billion dollar
investment from SolarCity, and impact of the thousands of direct and indirect jobs that will be created statewide,» said Jason Conwall from Empire State Development.
Connie Moran, the
investments teacher for
grades 6 - 8, explained how the lesson works: «These lessons are
not by
grade level, but progress in difficulty.
It was an $ 8,000
investment, and we use the test scores to identify kids who have AP potential but who might
not think of themselves that way because their attendance or
grades haven't been that great.
[190] The TIFIA debt can
not exceed the amount of the senior obligations unless the TIFIA credit assistance receives two
investment grade ratings.
To maintain the value implied by the senior debt rating, the TIFIA debt can
not exceed the amount of the senior obligations unless the TIFIA credit instrument receives two
investment grade ratings.
Until such time as a formal
investment -
grade rating is assigned, the Secretary shall
not extend credit in an amount exceeding the estimated subsidy cost.
This will
not be the cheapest M3 Cabrio on the market today and we believe should be the most expensive - we do also believe this is another blue chip
investment grade vehicle and a true modern classic.
The reasonable
investment will
not only enable them in saving time but it will help in getting best
grades and score the highest marks on the specific subject.
While the market may
not be trading high - yield junk for
investment -
grade positions as quickly as New Yorkers are trading in their flip - flops and shorts for scarves and umbrellas last week, market demand has shifted in October.
That said, the
investment grade corporate bond market, the junk bond market, and the bank loan markets can't have a better year in 2010.
As for equities,
investment grade assets that are
not likely acquirers look good.
A healthy dollop of
investment -
grade fixed income that isn't overly sensitive to interest rates helps produce reliable income and keeps portfolio values stable.
If you had your
nest egg primarily in GICs or
investment -
grade bonds before the crash, you avoided the stock market meltdown and did well in the immediate aftermath.
@Phil S: While I agree that a number of questionable ETFs are getting launched (a recent cloud computing ETF comes to mind), in this case,
investment -
grade corporate bonds are
not a particularly crappy
investment.
Though you may
not risk losing any of your money, losing purchasing power to inflation can be a risk over time with conservative
investments, such as high - quality
investment -
grade bonds.
In particular, many funds that own these are
not permitted to own other than
investment -
grade securities.
Many people realize that rising interest rates affect yields and prices, but what others might
not know is that if you stick closely to short - term,
investment -
grade debt securities - the very kind our Near - Term Tax Free Fund (NEARX) invests in - the impact of such a rate hike is
not as dramatic as some investors might think.
I also reduce the percentage exposure to any bonds that do
not qualify as
investment grade.
A: When you know you will need the money within 2 years, I don't think you should take any more risk than a short - term
investment grade bond fund.
But with the yield on long low -
investment grade bonds hovering above 5 %, I can tell you with certainty as a life actuary that the life companies are
not providing a 7 % return to retirees — it is far, far less, more like 4 %, or maybe less.
The pricing of stocks is
not arbitrary — a high price must be justified by high earnings relative to where an
investment grade bonds yield.
If the equity markets rally,
investment grade corporates and high yield will
not be far behind, but this portfolio would lag.
So if a company is drowning in debt and has little capacity to pay it back, its bonds will get a junk rating and they won't make into indexes that hold only
investment -
grade issues.
(Note: GE capital could
not be A - / A3 rated, or their commercial paper would no longer be A1 / P1 which is a necessary condition for
investment grade finance companies to be profitable.)
@Jerry, I agree that today the main risk in bonds is duration risk (AKA interest - rate risk)-- last weekend's Barron's has an interview with the UBS Wealth Management top managers pointing out this means convincing investors to switch from Treasuries and
investment -
grade corporates to well - selected junk (HYLD is a jewel there — DO
N'T go for index funds in bonds, very differently from ones in stocks they make no sense... where's the sense in wanting to lend more to companies which are more indebted?!
But I'd be wary of venturing, as some investors seeking higher yields do, into high - yield, or junk, bond funds, as they're generally more volatile than
investment -
grade funds and don't hold up as well in periods of economic and market stress.
While the above table indicates that traditional
investment grade bonds represented by the Barclays U.S. Aggregate are the least correlated to the S&P 500 and offer the best downside protection, that might
not always be the case going forward.
High yield bond funds take higher risks with the goal of paying higher yields by investing primarily in securities that are either
not rated, or have been rated below
investment grade by the major ratings agencies — for taxable funds, BB and below.