Sentences with phrase «of junk bond funds»

One - year returns of junk bond funds averaged 20 % in 2003 after a two - year slump, tracking the stock market rebound.
VWEHX is among the safest of the junk bond funds.
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.
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 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.
«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.
Just look up the performance of any junk bond fund in the past couple of months.

Not exact matches

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.
One reason for looking at junk bonds is that the firms that issue junk bonds are closer on the risk continuum to a large mass of firms that are too small and too weak to issue bonds at all, and that rely on banks or the informal capital market for funds.
Pension fund managers played a large role in the junk bonding of industry in the 1980s.
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.
Greylock, a $ 990 million hedge fund run by Willem J. «Hans» Humes, says in a filing with the Securities and Exchange Commission that international junk bonds are «generally considered to be predominantly speculative with respect to the issuer's capacity to pay,» and that defaulters sometimes end up shielded by «principles of sovereign immunity.»
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.
Junk bond funds are largely out of favor this year, but an interest - rate - hedged high - yield bond ETF is beating that trend.
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.
Meanwhile, Bloomberg reports that pension funds, squeezed for sources of safe return, have been abandoning their investment grade policies to invest in higher yielding junk bonds.
He lost money because a lot of other funds have made money gambling on corporate junk bonds that are yielding about 6.5 % now.
Both Fulton and Fishkill have near junk bond status, the board members said, as well as a low «fund balance» of cash to help them bridge potential budget gaps.
There are also funds that invest in a specific type of security, such as junk bonds or preferred stocks.
As time passed, the number of funds increased as they began to specialize in certain types of investments: foreign - country bonds, high - tech stocks, high - yield (junk) bonds, and so forth.
The Sub-Advisor seeks to achieve the fund's investment objective by selecting a focused portfolio of high - yield debt securities (commonly referred to as junk bonds).
Although the advisor intends to invest at least 65 % of the fund's net assets in municipal bonds rated investment grade or in unrated municipal bonds that fund management believes are of comparable quality, it is possible that in the future the fund could invest up to 100 % of its assets in «junk bonds
With the advent of the 1980s we had two innovations: junk bonds and bond index funds.
The fund may invest in foreign securities, junk bonds, ETFs, REITs, futures and options and other types of derivatives.
The BMO Monthly Income ETF (ZMI) is a portfolio of 10 other high - yield exchange - traded funds, covering real estate investment trusts (REITs), corporate bonds (both investment grade and junk), emerging market bonds, and dividend - paying stocks.
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.
To a lesser extent, it has also gone into high - yield mutual funds that buy bonds rated below investment grade, known as junk bonds to those who are dubious of them.»
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.
Several of the funds listed are speculative (junk) bond funds.]
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.
3 - month fund flows is a metric that can be used to gauge the perceived popularity amongst investors of Target Maturity Date Junk Bonds relative to other bBonds relative to other bondsbonds.
Target Maturity Date Junk Bonds and all other type of bonds are ranked based on their aggregate 3 - month fund flows for all U.S. - listed ETFs that are classified by ETFdb.com as being mostly exposed to those respective bBonds and all other type of bonds are ranked based on their aggregate 3 - month fund flows for all U.S. - listed ETFs that are classified by ETFdb.com as being mostly exposed to those respective bbonds are ranked based on their aggregate 3 - month fund flows for all U.S. - listed ETFs that are classified by ETFdb.com as being mostly exposed to those respective bondsbonds.
U.S. Municipal Bonds: (Data as of May 16,2013) Corporate junk bond yields have risen as mutual funds have seen outflows.
I invest that middle - term money in a mix of junk high yield bond funds and «high» yield savings accounts at an online bank.
Guggenheim Investments currently offers 14 of these funds, 8 of which invest in investment grade bonds, 6 of which invest in high yield or «junk» bonds.
The fund may invest up to 100 % of its managed assets in below - investment grade debt securities (commonly referred to as «high - yield» or «junk» bonds).
The Vanguard High - Yield (aka Junk) Bond mutual fund yields about 6.5 % (relatively high yield and perceived likelihood of defaults).
It may not be appropriate, therefore, to compare the performance of a high - yield (or «junk») bond fund with these averages.
It may not be appropriate to compare the performance of a high - yield (or «junk») bond fund with this average.
The Fund's investments in high - yield securities or «junk bonds» are subject to a greater risk of loss of income and principal than higher grade debt securities.
Even as junk bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 12 %.
Over the past 15 years, the average junk bond fund has returned an annualized 6.9 % in interest and principal gains, compared with 3.9 % for an index of high - quality U.S. bonds.
Putnam Income Fund Investment Option invests in Putnam Income Fund, which invests mainly in securitized debt instruments (such as mortgage - backed investments) and other obligations of companies and governments worldwide denominated in U.S. dollars, are either investment - grade or below investment - grade (sometimes referred to as «junk bonds») and have intermediate to long maturities (three years or longer).
Like HYG, the SPDR Bloomberg Barclays High Yield Bond ETF is an index fund connected to junk bonds — those same bonds that are prone to bankruptcies and caused tremendous havoc during the oil crash of 2014.
Bonds (both investment grade, and junk), money - market funds and real - estate (both as the investor's home, and in the form of Real Estate Investment Trusts) are discussed as asset classes in which investors should participate.
Because managers Dan Fuss and Kathleen Gaffney typically own a large helping of high - yield, or junk, bonds (those rated double - B or lower), as well as bonds from developing nations, the fund took a hit when investors bailed out of anything smacking of risk during the financial crisis and rushed into Treasuries.
In November of 2008 through March of 2009, it made a lot of sense to buy junk bonds, and I did so for my church building fund.
Since this fund is composes of higher quality issues, the risk of default is modest compared to junk bonds, but of course, we only consider US government debt as the sole risk - free bond issuer.
Despite the negative connotation of the term «junk bond,» these bonds are widely held by investors, especially in mutual funds and exchange - traded funds (ETFs), which mitigate the default risk for any individual bond.
However, a junk bond can be a useful diversification tool if you are intimately familiar with the company and its operations, and investing a small part of your portfolio in a high - yield bond fund might be a good strategy.
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