Sentences with phrase «other bond risks»

Other bond risks include:

For example, in the bond portion of a portfolio with a large fixed income allocation, it's possible to pursue better income opportunities while also managing the portfolio's sensitivity to interest - rate movements or other bond risks using an actively managed, unconstrained bond fund.

Not exact matches

«Finally, the increased role of bond and loan mutual funds, in conjunction with other factors, may have increased the risk that liquidity pressures could emerge in related markets if investor appetite for such assets wanes.»

Bond & Specialty Insurance — Bond & Specialty Insurance provides surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers in the United States and certain specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil, utilizing various degrees of financially - based underwriting approaches.

I sent out to some people last Wednesday why I thought the CDS market would outperform ETF's, and that is still my view, and has a lot to do with the bonds that make up the high yield index and their rate risk exposure for some, and horrible convexity for others.

Attract a wider array of capital to clean energy investments by developing innovative financing structures — from reducing investment risk though our Catalytic Finance Initiative to engaging individual investors through our Socially Responsible Investing platform to building new markets for green bonds, yield - cos and other vehicles.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

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.»

The other big risk in bonds, and long maturity bonds in particular, is temptation in the short - term.

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..

The fund may invest in asset - backed («ABS») and mortgage - backed securities («MBS») which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other bonds.

Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market.

Like literally every other asset class, there are risks worth considering for bonds.

In other words, convertibles are uniquely positioned to offer the growth potential of stocks, but with the income and downside risk management characteristics of traditional bonds.

Bonds are subject to market, interest - rate, price, credit / default, call, liquidity, inflation, and other risks.

No matter what your situation, this means creating an investment mix based on your goals, risk tolerance, financial situation, and timeline; and being diversified both among and within different types of stocks, bonds, and other investments.

Because they are considered to have low credit or default risk, they generally offer lower yields relative to other bonds.

That will be important to private investors, because if the central bank held itself out as a privileged bondholder, effectively passing more risk on to other bond holders, other buyers might undermine the stimulus program by demanding higher interest rates.

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.

Investment grade bonds are considered to be lower risk and, therefore, generally pay lower interest rates than non-investment grade bonds, though some are more highly rated than others within the category.

An unusually high yield relative to similar bonds is often an indication that the market is anticipating a downgrade or perceives that bond to have more risk than the others and therefore has traded the bond's price down (thereby increasing its yield).

But this masks the reality that equities — and by extension other risk assets — still look attractive taking into account that bond yields are likely to stay historically low.

There are a number of other risks to consider when investing in bonds that are potentially more harmful than rising rates.

Bonds are subject to market, interest rate, price, credit / default, liquidity, inflation and other risks.

Interest rate risk Although high yield bonds have relatively low levels of interest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be a factor.

Historically, different combinations of valuation, market action and other factors have been accompanied by significantly different bond market performance in terms of return / risk.

As the Fed tapers, many observers worry about the effect on the stock market, while others are worried about the risk of inflation or deflation and everybody is worried about the effect of higher interest rates on economic growth and for the bond market.

So, saying «cash» is a terrible investment because of inflation, completely ignores the other risks involved in holding stocks and bonds.

«Should the Portuguese situation continue to deteriorate, risk aversion contagion could quickly spread to other euro zone member states» bonds and other asset classes,» Adrian Miller, director of fixed - income strategy at GMP Securities LLC in New York, wrote in a note to clients.

Treasury bonds are considered by most to be free of default risk, so they are the benchmark to which all other types of bonds are compared.

Lesson 8: Credit Ratings — The other major risk that bond investors face is credit risk.

This is inaccurate, because there are other factors which combine with credit risk to make up the «spread premium» that other types of bonds have over treasuries.

That lower risk to payment usually helps high - yield bond prices not fall as much as other bonds.

As I emphasized last week, «While we're already observing cracks in market internals in the form of breakdowns in small cap stocks, high yield bond prices, market breadth, and other areas, it's not clear yet whether the risk preferences of investors have shifted durably.

If you are younger, say under the age of 35, then you can probably withstand a little more risk in your portfolio and will invest more in stocks and other assets rather than bonds.

Here are a list of some of the other factors that can be included in the credit spread for different types of bonds in addition to credit risk:

Investors should determine which bond products are right for them based on their investment objectives, risk tolerance, financial situation and other individual factors, and re-evaluate them on a periodic basis.

Individual bonds deprive you of extra income when interest rates go up, as well as expose you to other risks.

It's risky to invest too much in bonds or other low risk assets, because those equal to lower returns.»

We don't expect renewed bouts of euphoria, but we see scope for investor optimism to lift equities and other risk assets, and see a mild rise in bond yields.

Investors should keep in mind that bonds are subject to risks, including market, inflation, interest rate and default, among others.

High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.

Instead of the weights of different types of bonds, investors can hone in on exposure to factors that drive portfolio performance, such as interest rate risk, credit risk, and others.

Once the bond market starts unraveling, all the other risk assets will start selling off like mad, too.

But as risk aversion subsides, and investors return to corporate bonds and other assets, investors are now calculating the risks of renewed dollar inflation.

Diversification of your financial assets (stock funds, bond funds and other financial investments) is the best way to boost investment returns and reduce risk.

Money market accounts offer higher yields because they are linked to low - risk bonds and other relatively liquid instruments.

Admittedly, there has been a visible flight from erstwhile «risk - free» assets in other areas (such as the Eurozone) to AAA - rated Commonwealth bonds (see charts below).

In other words, bonds are a source of diversification from the equity risk that dominates most investors» portfolios.

However, munis may pay lower yields than Treasury or corporate bonds of similar maturity and quality, and are subject to the same rate risks as other bonds.