Sentences with phrase «on junk bond yields»

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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.

NEW YORK, Jan 18 - U.S. fund investors pulled $ 3.1 billion from high - yield «junk» bonds during the latest week, Lipper data showed on Thursday, offering new warning signs about risk appetite despite global markets» continuing triumph.

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.

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.

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.

The yield on the Merrill Lynch junk bond composite is up 205bps from last year's low of 5.16 % on June 24 to 7.21 % currently.

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.

Yet we also see very strong inflows into junk bond funds, based on the belief that these high yields represent value rather than information about default probabilities.

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.

Van Eck adds another yield - generating ETF, this one focused on emerging market corporate junk bonds.

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

On the subject of junk debt, in the first two quarters of 2014, European high yield bond issuance outstripped U.S. issuance for the first time in history, with 77 % of the total represented by Greece, Ireland, Italy, Portugal, and Spain.

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.

He lost money because a lot of other funds have made money gambling on corporate junk bonds that are yielding about 6.5 % now.

The S&P 500 High Yield Corporate Bond Index tracks the junk bonds of issuers of the S&P 500 and as the yields indicate, on average, they tend to be better quality than the bonds in the broader index.

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

When risk - free and AAA - rated corporate bonds yield less than 4 %, 3.5 % yield on utilities and 6 % yields from junk ETFs are difficult to pass up.

Even corporate junk bonds aren't so high - yield these days, with those securities yielding 6.36 percent on Friday, after hitting a record low of 5.98 percent last week.

To compensate for the risk of defaults, junk bonds have, on average, yielded some 6 percentage points more than comparable Treasury bonds.

A fund that focuses on lower - quality junk bonds will often sport a higher yield.

Target Maturity Date Junk Bonds and all other type of bonds are ranked based on their AUM - weighted average dividend yield for all the 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 AUM - weighted average dividend yield for all the U.S. - listed ETFs that are classified by ETFdb.com as being mostly exposed to those respective bbonds are ranked based on their AUM - weighted average dividend yield for all the U.S. - listed ETFs that are classified by ETFdb.com as being mostly exposed to those respective bondsbonds.

Bond power rankings are rankings between Target Maturity Date Junk Bonds and all other U.S. - listed bond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average dividend yieBond power rankings are rankings between Target Maturity Date Junk Bonds and all other U.S. - listed bond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average dividend yiebond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average dividend yields.

High - yield bonds, also known as «junk bonds,» generally have a greater risk of default, which increases the risk that an issuer may be unable to pay interest and principal on the issue.

Reach for yield in junk bonds and take on default risk?

Stocks are harder to measure, so if you need better guidance, look at the yields on junk bonds.

Average yields on investment - grade corporate bonds have risen just 2 basis points this month to 96 basis points more than Treasuries, while junk bond yields are up just 7 basis points to 253 basis points over Treasuries, according to Merrill Lynch data.

Investing in the SPDR High - Yield Bond ETF (NYSE: JNK) is a popular way for individual investors to get in on the junk bond actBond ETF (NYSE: JNK) is a popular way for individual investors to get in on the junk bond actbond action.

Attracted by higher yields than on safer bonds, and with lower valuations than on stocks currently, portfolio managers and individuals alike have poured money into junk bonds this year.

Luke @ Learn Bonds writes My Thoughts On High Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the Bonds writes My Thoughts On High Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the yield bonds have been referred to as «junk bonds,» but that is not the bonds have been referred to as «junk bonds,» but that is not the bonds,» but that is not the case.

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

Investors should avoid reaching too far out on the risky limbs of higher - yielding junk bonds and high - dividend stocks, he says.

That is above the average yield on U.S. junk bonds, which is 9.4 percent according to Merrill Lynch data.

Also, on the fixed income side, I've been selling HY [DM: High Yield, aka «Junk»] bonds, shortening duration, and buying floating rate bank loans.

For the one - week period ending on November 15, 2017, investors withdrew a net $ 4.43 billion from U.S. funds holding high - yield bonds (often called junk bonds)-- the third largest exodus from such funds on record.1 The high - yield market stabilized over the next two days, but the mass sell - off rang alarm bells for some market analysts.

Opportunistic investors moved into junk bonds in late 2008 when, in the face of frozen credit, yields on junk bonds went up to more than 20 % on the back of falling prices and to richly compensate investors for taking up the risk.

On June 24th, the junk bond markets were fairly tightly bid, and volume in the main high yield ETFs [JNK & HYG] were moderate.

6) Junk bonds have rallied to a high degree; at this point I say, underweight them — the default losses are coming, and the yields on the indexes don't reflect that.

When you have many different parties going into the markets seeking income, not caring where they get it from, and a shock hits one part of the market, the effect flows to other areas If all of a sudden yields on junk bonds look cheaper, the yield trade - offs of buying junk and selling dividend paying common stocks looks attractive.

Even though it may be concerning that Bank of America Merrill Lynch index data shows yields on junk bonds have plunged to 5.6 percent, the lowest ever and 3.4 percentage points below the decade - long average, the outlook for defaults does look pretty good.

As the yields on junk bonds were skyrocketing, they were plummeting on Treasuries.

See our posts 3 Ratings Agencies On Argentina: Still Junk Bonds, Yield Mania: Record Emerging Market Debt Inflows, Argentina A Fave, 3 Experts: What's Next For Argentina Economy, Investments?

High yield debt also landed on the maps of most investors in the second half of 2015, as did increased queasiness in anticipation of the uncertain severity of the impending junk bond rapids.