Sentences with phrase «of junk bond»

Interesting to be seeing this in the midst of a junk bond rally.

Therefore, when the ratio of junk bond indexes to higher - quality corporate bond indexes rises, we know that investors are aggressive.

Can more juice get squeezed out of the junk bond sector?

I realize that the idea of junk bond indexing is to buy into notes that pay high yields, but there's risk and then there's RISK.

One - year returns of junk bond funds averaged 20 % in 2003 after a two - year slump, tracking the stock market rebound.

Just look up the performance of any junk bond fund in the past couple of months.

VWEHX is among the safest of the junk bond funds.

The distressed segment of the junk bond market has the most concentrated trading activity indicating that the majority of bonds in that segment are significantly less liquid.

«junk bond king» wrote a thesis that two percentage points were enough compensation for the likely higher default rate of a junk bond fund over a corporate bond fund.

The main danger of a junk bond fund is that there will be a higher rate of bankruptcy / default than in an investment grade bond fund.

Other factors also impact portfolio performance; most notably, the specific market segments in which it is invested — durations of junk bond funds will exceed durations of treasury funds with similar maturities.

``... The result of the junk bond process was to load American industry down with so much debt that there's no money to pay pensions...»

Formidable Strength Of Junk Bond ETFs (Nasdaq) High - yield bond ETFs demonstrated a great deal of resilience during February's market turmoil.

The next big event that triggers a big sell - off in the junk market will cut the value of a lot of these junk bond mutual funds down by one - third to a half.

There is an ongoing debate about the current state of the junk bond market and what it means for equities and, more broadly, the economy.

Moreover, Moody's said the ranks of the lowest level of junk bond issuers are growing, with an 8 percent quarterly increase and 27 percent growth annually, thanks in large part to weakness in oil and gas companies.

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.

The average yield of junk bonds rated «B» is 6.5 %.

Spreads on the junkiest of junk bonds have recently moved to their widest levels of this expansion.

However, investors of junk bonds should note the implications and risks that are involved with investing in bonds that are issued by companies with liquidity issues.

David Swensen offers a savage takedown of junk bonds in his book Pioneering Portfolio Management.

Most of the 7 million he used was obtained by Michael Milken who is better known as being the king of junk bonds.

But none of yer junk bonds or emerging market ones.

-- Owners of junk bonds need to be careful as to what they own and be sure in their timeframe for ownership.

Companies are issuing record amounts of junk bonds.»

In the case of junk bonds, that's been especially true.

Such will involve things like the purchasing of junk bonds.

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'm a big fan of junk bonds, but I'd probably get a little friskier and buy a levered junk bond closed end fund.

Historically, some 5 % of junk bonds have defaulted each year, though defaults in recent years have been running at more like 2 % or 3 %.

The earliest CDOs were constructed by Drexel Burnham Lambert, the home of former junk bond king Michael Milken, in 1987 by assembling portfolios of junk bonds issued by different companies.

First, ignore Treasuries — they aren't relevant to the price performance of junk bonds.

I have never been a fan of junk bonds, in my opinion money allocated to junk bonds should just be put into stocks instead.

With an investment grade score of «B», the Osterweis Strategic Income Bond is one of the junk bonds out there.

However, investors of junk bonds should note the implications and risks that are involved with investing in bonds that are issued by companies with liquidity issues.

The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.

Though I disagree with the author's use of junk bonds within portfolios, overall this book is an excellent overview of investment asset allocation strategies.

Then later, in early 2007, I wrote: I was wrong on underperformance of junk bonds.

The average default rate of junk bonds has historically ranged between 1.5 % and 10 % a year.

Not exact matches

His legal background proved invaluable in 1991, when the state of California and its insurance commissioner John Garamendi seized Raleigh's then - financial partner Executive Life Insurance Company after the value of the insurer's multibillion - dollar portfolio collapsed — a fate tied to its massive investments in the junk bond market of the go - go 1980s.

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.

The sell off in the market for high yield debt, or junk bonds, is now hitting a type of structured bond that is similar to the the type that blew up in the financial crisis.

Serge Pepin, the head of BMO Investments, says people should consider corporate or high - yield bonds — also known as junk bonds — which pay higher yields than federal issues.

«It's on the way» to junk status, said Carlos Gribel, the head of fixed income at private investment bank Andbanc Brokerage in Miami, adding the bonds still have room to fall before becoming attractive to investors with an appetite for risk.

This, the office which Rudy Giuliani led to national prominence with his late - 1980s busts of junk - bond king Michael Milken, Ivan Boesky, and the Drexel Burnham insider - trading ring, is one of the few outfits in the country that even know how to prosecute complex securities crimes.

Two are focused on high - yield, or junk, bonds, according to ETF.com, despite repeated warnings on Wall Street that the segment of the market is headed for the rocks.

Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.

The company's lone outstanding junk bond, worth $ 1.8 billion and maturing in 2025, briefly dropped two points to as low as 85 cents on the dollar for a yield of around 8 percent on Monday, according to MarketAxess data.

Investors holding Detroit's bonds have already taken a hit as the steady erosion of the city's finances has slashed the city's credit rating to junk status.

Four of the top 10 funds in terms of inflows from Oct. 7 - 13 came from the bond sector, and two of them were focused on high - yield, or junk.