Sentences with phrase «of bond defaults»

In countries that aren't as diverse economically as the U.S., there's a greater risk of bond defaults — and hence a stronger argument for allocating serious sums to foreign bond funds.

The risk of bond defaults can be minimized by investing in high quality bonds; those bonds with higher quality ratings from the bond rating companies.

The resulting deregulated and unregulated institutions have brought us one financial crises after another — the savings and loan scandal, the bubble and bust in Real Estate Investment Trusts, the collapse of the hedge fund, Long Term Capital Management, which threatened to set off a daisy chain of bond defaults, and more.

Unless you buy a large number of U.S. bonds you are accepting the security - specific risk that one or more of the bonds default and you lose your investment.

I bonds are issued by the US Treasury Department, meaning there is virtually no risk of the bonds defaulting as is possible with corporate or municipal bonds.

Not exact matches

When you own a bond mutual fund, you don't actually own a bond — which will continue to pay a coupon so long as the issuer isn't in default — you just own a share of the fund, which is comprised of lots of bonds and sometimes other things.

This «recent stream of defaults» pushed the default rate of junk - rated bonds in the US to 3.9 % for the trailing 12 - month period ended in March, up from 3.4 % in December.

As oil prices have fallen, defaults in the sector have risen — about a quarter of all corporate bond defaults in 2015 were energy related, according to Moody's — and that's made traders even more reluctant to buy.

The company had a net loss of 10 million yuan (US$ 1.57 million) in the first half of last year, a bond default this year, and it has racked up debts of at least 3 billion yuan.

So for example if you bought a bond with 25 percent of each of the major economies, and Italy defaulted, you would still be paid on the remaining 75 percent, presumably at least,» he added.

That's left a lot of junk bond fund managers with plenty of exposure to the energy sector at a time when oil prices have crashed and defaults, particularly among fracking companies, are rising.

Not only isn't there anywhere near enough bank capital in the US to supplant securitization, it is difficult to conceive that the universe of «rates» buyers will become mortgage credit buyers or move over to covered bonds (which default to the issuing bank's credit ratings), at least not at the same price levels and in the same size.

For bonds this means issues that are not at risk of defaulting on a payment; for stocks a dividend is essential, and not one at risk of a cut, or one that fluctuates through good times and bad.

«There's no question the bond markets would be unhappy if a bankruptcy law were passed, but they're already starting to price in the prospect of a default,» Skeel tells me.

Government bonds could help reduce default risk, but because of the length of maturity required to earn any meaningful yield, they do little to reduce duration risk - i.e. the overall sensitivity of a portfolio to interest rate rises.

Daniel Hanson, an analyst for Height Securities, told Morning Consult that the current default likely won't have a major effect on the municipal bond market because its effects were already «priced in» ahead of time.

For savers, particularly retiring baby boomers, ultra-low yields are little short of disastrous, especially given that a 100 % allocation to bonds or annuities is the default option for retirees.

But a continuation of favorable economic growth and low default levels — which we expect — and measured Federal Reserve tightening — which we also expect — should support more narrow high - yield bond spreads for some time to come.

Adding even more uncertainty, Valeant also revealed that it faces a risk of default if it is unable to file its 10 - K with the SEC by April 29, which would break its reporting covenant in its bond indentures.

You're still dealing with all of the same bond risks as every other investor when you buy individual bonds — interest rate risk, credit risk, inflation risk, duration risk, default risk, etc..

If interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returned.

ST gov» t bonds offer you the safest investment from a default risk perspective, but you earn a lower rate of interest on them.

The fund can purchase securities of any credit quality, including those in default, but it will primarily invest in investment - grade debt, with no more than 20 % of the portfolio invested in junk bonds.

High yield / non-investment-grade bonds involve greater price volatility and risk of default than investment - grade bonds.

On Argentina: «You have defaulted bonds trading above par, which is kind of interesting.»

There is still risk, of course: bond issuers can default, and companies that issue stock can go under.

Furthermore, investors are now starting to become more wary of bonds and concerned about defaults in the future.

Still, defaults on bonds or other forms of non-bank debt typically don't end up in bankruptcy.

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.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk.

Other risks typically associated with bond investing, such as default risk and call risk, are mitigated because a bond fund is made up of many individual bonds.

(The bonds that funds own each carry the risk of default if the issuer is unable to make further income or principal payments.)

The cost of insuring Vivendi bonds using credit - default swaps increased as much as 4 basis points, or 2 percent, to 203 basis points today, according to Bloomberg prices.

Advice: Because bonds with longer maturity face greater risk of changing interest rates (and greater default risk, as...

According to Standard & Poor's, about 40 emerging - market bond issuers were on the brink of default as of year - end 2016.

The Obama Administration's Wall Street managers have kept the debt overhead in place — toxic mortgage debt, junk bonds, and most seriously, the novel web of collateralized debt obligations (CDO), credit default swaps (almost monopolized by A.I.G.) and kindred financial derivatives of a basically mathematical character that have developed in the 1990s and early 2000s.

The country, which hasn't sold bonds abroad since the default, has settled arbitration cases at the World Bank, paid Spanish oil company Repsol SA for the expropriation of YPF SA and negotiated with the Paris Club of creditor nations.

Michael Spencer, an attorney for a group of smaller investors with more than $ 832 million of claims on defaulted bonds, said his clients haven't been able to negotiate directly with Argentina yet.

High - yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.

Advice: Because bonds with longer maturity face greater risk of changing interest rates (and greater default risk, as well), they typically pay higher interest rates.

If a bond issuer fails to make either a coupon or principal payment when they are due, or fails to meet some other provision of the bond indenture, it is said to be in default.

Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer, industry, or sector and, in the case of bonds, perceptions about the risk of default and expectations about changes in monetary policy or interest rates.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradeDefault risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradedefault on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

Higher yielding fixed income offers those higher yields because the issuers of the bonds have a better chance of defaulting on their debt.

The 2000 law also excluded credit default swaps from the definition of security under the Securities Act of 1933, exempting them from the requirements that stocks and bonds must meet.

Because credit and default risk are the dominant drivers of valuations of high yield bonds, changes in market interest rates are relatively less important.

Moody's data shows that bonds rated Ba had a 1.17 % probability of defaulting within a year, whereas more speculative bonds rated Caa — C, had a one - year default probability of more than 17 %.

As discussed on its March 15, 2016 preliminary earnings call, Valeant could receive a notice of default under its bond indentures as a result of the delay in filing its Form 10 - K for the year ended December 31, 2015.

Investment grade bonds had less than 0.2 % probability of a default within a year.1