Sentences with phrase «not junk bonds»

Yield spreads over Treasuries are not a good way to define value in bonds, and particularly not junk bonds.

Most bonds (not junk bonds) represent a less risky investment than most stocks, which means that stocks have to offer a higher return as a premium for increased risk.

Most bonds (not junk bonds) represent a less risky investment than most stocks, which means that stocks have to offer a higher return as a premium for increased risk.

Not exact matches

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

The paper finds that junk bonds are, in fact, a very good indicator for forecasting economic peaks if not troughs, effectively warning ahead of eight of the last ten peaks in the business cycle.

Markets are fine, volatility is modest and trade war isn't a big deal, say delegates at junk - bond king Michael Milken's annual L.A. summit.

And while bubbles may yet emerge, by their very nature they're likely to be found somewhere entirely unexpected — not a closely watched, highly liquid market like the $ 1.3 trillion United States junk bond market.

While junk bonds may not represent a systemic risk as credit derivatives did during the financial crisis, they can be one of the more effective leading economic indicators.

The NY Times aptly reflects the consensus view that there has really been no, «rout,» in the market for junk bonds and that they don't signal anything more serious for other markets or the economy, as they don't represent a, «systemic risk.»

If a junk bond defaults, you might not even get your initial investment back.

When people see banks browbeating the bond rating agencies and accounting firms to whitewash the quality of what they're pawning off on their customers, when they see bank lobbyists getting Washington to block state prosecutions of financial fraud so as to clear the way for more predatory lending and false packaging of the junk securities they're selling and to win the right not to reveal their true financial position, there's a good reason not to buy what's in these black boxes.

Junk - bond ETFs rallied on Wednesday, as markets breathed relief that the «fiscal cliff» is no longer a concern and as a result, bond yields are under 6 percent for the first time ever, and junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF TreJunk - bond ETFs rallied on Wednesday, as markets breathed relief that the «fiscal cliff» is no longer a concern and as a result, bond yields are under 6 percent for the first time ever, and junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Trejunk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Trends.

Not so much junk bonds, just junk.

This event didn't seem to infect the junk bond market until early July 2014.

With the current capital markets having been flooded with Fed, Bank of Japan and ECB money printing, I'm not sure the junk bond market will act as a warning beacon this time around.

There are a couple of interesting options possibilities on JNK and HYG such as bearish verticals if we accept that junk bonds will not be going even higher in the next year or two.

For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.

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).

Junk bonds, for instance, are producing a less than pulse - quickening yield of 6 % which, adjusted for defaults (likely to explode during the next recession), isn't worth the risk — save in a few special situations.

Further, with junk grade defaults at negligible levels today, even higher risk bonds have not posed significant problems — although that does not always have to be the case.

Deutsche projects a substantial but not crippling 23 % decrease in junk - bond issuance across all developed markets this year, to $ 210 billion.

The current retraction won't reach its nadir of 10 % junk - bond defaults and virtually closed markets until 2018, Fridson predicts.

It may be somewhat useful to make comparisons to that period of time to see how certain interest rate sensitive asset classes such as junk bonds, REITs, dividend - paying stocks or bonds performed, but my guess is that particular environment doesn't do a great job of showing investors what a typical rising rate scenario would look like (assuming there is such a thing).

What we're seeing here — make no mistake about it — is not a rational, justified, quantifiable response to lower interest rates, but rather a historic compression of risk premiums across every risky asset class, particularly equities, leveraged loans, and junk bonds.

The 500 - room Westin was built in 2007, but it hasn't met revenue projects over the last decade, and in 2014, Standard & Poor's downgraded the village to junk - bond status based mostly on the financial mismanagement of the hotel.

A partial but not complete list of worries includes: China melt down, Yuan reevaluation after effects or Taiwan action, global biomedical epidemics, e.g. Avian Flu, or bioterrorism outbreaks, trade wars (China, EU), major hedge fund bankruptcies, a PBGC (Pension Benefit Guaranty Corp.) shortfall crisis, major junk bond or emerging market bond default, a bank derivative blowup, Fannie Mae issues plus possible assorted natural disasters.

I have underlined several times that while we did see volatility in the equity market in Q1» 18, the bond market was numb to any market movements; while Treasuries were falling, junk bonds didn't widen much compared to how they were trading at the beginning of the year.

The striking similarities between insolvent Puerto Rico and the Land of Lincoln serve as a dire warning: Without real reforms, Illinois won't be able to shake off an eventual junk bond rating or get off the path to financial ruin.

There are other examples of speculation such as some European junk bonds trading at yields so low that no company should ever have to suffer the indignity of bankruptcy but for pure entertainment value you can't beat Jesus coin.

We mention in the book that timing the lower volatility bonds does not make a lot of difference (higher vol bonds like corporates, emerging, and junk work well however).

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

Investors» warm reception for this week's $ 3.5 bln issue looks strange given the island's junk rating and rocky finances, not to mention that existing bonds trade at a big discount.

The idea of debt amnesties was to prevent debt from tearing society apart — to prevent the kind of crisis that the United States has been in since 2008, when President Obama didn't cancel the junk - bond debts, or the debts that tore the Greek economy apart — when the IMF and Europe imposed them on Greece instead of letting it default on debts owed to French and German bondholders.

Time was not on our side — after being cash flow positive for almost a decade we had been hit hard by the junk bond credit crisis that started in mid 1990.

Currently, I am not invested in junk bonds.

You say the coupon is 4 % or so which I think is a fair statement, but surely the yield to maturity must be much lower, 1.5 - 2 % assuming you aren't buying 30 + year bonds or junk paper?

These include limiting the number of junk bonds that can be acquired by federal - and state - insured institutions, and specifying to company directors and officers that achieving the best short - term investment returns is not their main fiduciary responsibility.

«I don't want to alarm anyone, but I think it's safe to say that we should see this as a $ 3 billion budget deficit... The state of California has had to pass out IOUs, which has reduced their credit rating to Triple - B, which is one status above junk bond.

After the drop to junk bond status, he said he had taken steps to address the town's fiscal problems, but «it wasn't enough.»

Also, for junk bonds you HAVE to diversify quite a lot, because the reward for the extra risk is only for the part of the risk that can not be diversified away.

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.

However, many experts feel yields on «junk bonds» don't justify the risk at this time.

Starting in 2008 and into 2009, high yield corporate bonds (otherwise known as junk bonds) saw huge drops in price under the premise the America was going to see a massive wave of corporate defaults, the likes of which we hadn't seen since the Great Depression.

However, the interest rate isn't necessarily the same thing as some bonds may have higher yields do to the potential for defaults like junk bonds for example.

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.

A fund with this exposure can certainly lose money during a 2008 - type crisis because of liquidity concerns, but it won't suffer anything like the carnage we saw with junk bonds.

It doesn't matter if you measure risk by standard deviation of returns, beta, or credit rating (with junk bonds).

The optimal outcome is that you get paid principal & interest to the stated maturity from this bond that is deep in junk territory, CCC + / Caa1 - rated, where the proceeds of the deal don't increase the value of the firm, but are paid as a dividend to the equity holders.

@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?!