In comparison, bonds issued by corporations,
particularly high yield bonds, have a higher probability of default.
Not exact matches
In other words, at a certain level
higher bond yields create real competition for stocks,
particularly dividend stocks, and put downward pressure on multiples.
Finally, we prefer hard - currency EM
bonds —
particularly high -
yielding oil exporters such as Russia, Colombia and Kazakhstan — and short - duration local currency
bonds in some countries.
«
Bond investors are clearly giving a vote of confidence to the U.S. economy by moving back into corporates -
particularly high -
yield,» said Joe Clark, managing partner at the Financial Enhancement Group.
Bond yields remained stubbornly
high; it was a great time to invest in
high quality long
bonds,
particularly long zero coupon
bonds.
Earnings
yields are
higher than
bond yields,
particularly among many investment grade companies, fostering buybacks and occasional LBOs.
This would benefit most
bonds,
particularly those with
higher yields.
In our opinion, the so - called «spread sectors,» from
high -
yield bonds to non-agency mortgages and emerging - market debt (EMD), currently offer attractive levels of credit, prepayment, and liquidity risks,
particularly for investors who know how to analyze these risks.
Given the current low interest - rate environment, adding a
high -
yield allocation to your core
bond portfolio or investing in a multisector
bond fund may help increase your investment income — just remember that many of these types of funds still come with the potential for significant volatility,
particularly during times of heightened economic and / or stock market volatility.
Tracking a
bond index can be a challenge,
particularly in a highly illiquid sector such as
high yield.
In addition,
high -
yield bonds tend to have
higher interest rate risk and liquidity risk,
particularly in volatile market conditions, which makes it more difficult to sell them.
This has
particularly been the case for issuers rated below investment grade, like Rogers Communications, who have accessed the well developed U.S.
high yield or junk
bond market.
Large index ETFs, which have real - time net asset values (NAVs), have not helped this pricing problem in fixed income but, in parts of the fixed income market where there is less liquidity (such as
high yield bonds), sourcing issues can be more difficult —
particularly in a market sell - off where buyers may not be readily available with sufficient capacity to take on
bond inventory.
In our model fixed income portfolio, we trimmed our exposure to corporate
bonds,
particularly high -
yields.
Loomis Sayles
Bond Fund (LSBRX, 3.3 %) isn't technically a junk - bond fund, but longtime manager Dan Fuss has excelled as a bond picker, particularly in high - yield iss
Bond Fund (LSBRX, 3.3 %) isn't technically a junk -
bond fund, but longtime manager Dan Fuss has excelled as a bond picker, particularly in high - yield iss
bond fund, but longtime manager Dan Fuss has excelled as a
bond picker, particularly in high - yield iss
bond picker,
particularly in
high -
yield issues.
Many of today's
high -
yield bonds,
particularly those rated Ba by Moody's or BB by other rating agencies, are not considered «junk.»
In addition,
high yield bonds tend to have
higher interest rate risk and liquidity risk,
particularly in volatile market conditions, which makes it more difficult to sell the
bonds.
From all of my research,
high yield bonds are highly sensitive to credit conditions,
particularly those of its industry.
Performance could be
particularly poor during risk - averse, flight - to - quality environments when
high yield bonds commonly decline in value.
If you read Howard Marks» newsletters you know that he runs a shop that focuses on
bonds,
particularly high yield, convertible, and distressed debt.