Sentences with phrase «performance bond rates»

If you can demonstrate financial strength by providing strong business financials, it can drastically lower your performance bond rates.

Not exact matches

The company declined to comment on the performance of its bonds or its credit ratings.

«During the Harrison years, they had labour issues now and then,» says Kam Hon, managing director at bond rating agency DBRS, «but the disrupt ions were never extensive, so it never really hurt CN's performance.»

But that relationship has been tested over the life of this bond bull market that saw double digit interest rates fall over the past 30 + years, boosting the performance of long - term bonds.

Another aspect to watch: does strong equity - market performance combined with rising rates (bond price declines) create outflows to bond funds?

Barclays U.S. Aggregate Bond Index is a broad - based, market - value - weighted benchmark that measures the performance of the U.S.dollar - denominated, investment - grade, fixed - rate, taxable bond marBond Index is a broad - based, market - value - weighted benchmark that measures the performance of the U.S.dollar - denominated, investment - grade, fixed - rate, taxable bond marbond market.

Here you can see that rate increase along with the performance of these bonds over that period:

Bond performance surprised everyone, especially given how tight rates already were at the start of the year and expectations of rising rates.

But as newer bond holdings would get added to the index at the now higher interest rates as older bonds matured the performance would play catch - up.

A downgrade in the credit rating of a bond by the credit agencies can affect bond performance as well if institutional investors are forced to sell because of restrictions on the credit quality of the bonds they're able to hold.

Look at what happens to the bond performance over that same period once you take into account the inflation rate:

Performance varies greatly for bonds of different credit qualities, but even during the worst bear market for bonds, the 40 - year period of rising rates from 1941 to 1981, the worst 1 - year loss for the Bloomberg Barclays US Aggregate Bond Index was just 5 %.

While rising rates hurt bond prices in the short term, for long - term investors the higher interest payments can eventually benefit performance.

The Bloomberg Barclays Rate Hedged U.S. Aggregate Bond Index, Negative Five Duration measures the performance of Investment Grade securities and is selected by a Market Value process.

Stocks with a history of consistently growing their dividends have historically tended to perform well and exhibit less volatility in a rising rate environment, while high yielding dividends, often considered «bond - like proxies,» have tended to be more vulnerable (due to their high debt levels) and have historically followed bond performance when rates rise.

In my opinion, higher inflation is a much bigger risk than rising interest rates when it comes to bond performance.

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.

For example, based on our analysis using J.P. Morgan index data, the EMBIG index's 7.25 percent performance in 2014 is owed to a -0.35 percent spread return combined with a 7.6 percent Treasury return, as U.S. rates dropped significantly (remember that when interest rates fall, bond prices rise, and vice versa).

Figure 2 shows that during past rate - hike cycles, muni bonds not only continued to generate positive performance over the entire course of the rate - hike cycle, but also managed to generate positive returns immediately after each rate hike.

Moody's said it was moving authority bonds from A1 to A2 — its sixth highest rating — because «future financial performance will rely to a much greater extent on as yet undetermined toll increases to support the bridge construction costs and that failure to adopt sufficient rate increases within the expected time horizon would pressure financial metrics.»

The index tracks the performance of a portfolio of AAA - rated covered bonds, which are denominated in U.S. dollars.

But a strong counterpoint to this equity performance continues to be the narrow spread between short and long rates in the major bond markets around the world.

The Bloomberg Barclays US Corporate High - Yield Bond Index is an unmanaged broad - based market - value - weighted index that tracks the total return performance of non-investment grade, fixed - rate, publicly placed, dollar denominated and nonconvertible debt registered with the Securities and Exchange Commission.

When the Fed hints that rates may rise, a «musical chairs» or «rush to the exits» mentality seizes the mutual funds — no one wants to be the last one out of bonds as the prices fall and their performance collapses.

The S&P China High Quality Corporate Bond 3 - 7 Year Index, an investible index tracks the performance of Chinese corporate bonds within three to seven year tenors and uses more stringent rating criteria, has outperformed its boarder benchmark and returned 5.70 % YTD, as of August 27, 2015.

Figure 2 shows that during past rate - hike cycles, muni bonds not only continued to generate positive performance over the entire course of the rate - hike cycle, but also managed to generate positive returns immediately after each rate hike.

However, the performance of dividend stocks tends to be lower during periods of rising interest rates, when they have to compete with bonds for income investors» attention.

An examination of the historical performance of fixed income in the periods during and immediately following a rate rise has revealed a potentially more favorable outlook for investors who were committed to the long - term role that bonds typically play in a portfolio.

During periods of rising rates, municipal bonds have historically generated positive performance.

Two questions being asked right now about bonds is when will interest rates rise and how will it affect bond performance?

Bonds are «low risk» loans where bondholders receive income regardless of the economy or company performance; the main risk that bondholders retain is interest rate risk (that is, the risk that they could have asked for more interest on their loans if they'd loaned at a later date).

Using the 10 - year U.S. Treasury Bond yield as the proxy for interest rates, Exhibit 1 shows the historical performance of the S&P 500 Low Volatility and S&P 500 indices in periods of significantly increased interest rates.

By taking such short positions, the index seeks to mitigate the potential negative impact of rising Treasury interest rates («interest rates») on the performance of high yield bonds (conversely limiting the potential positive impact of falling interest rates).

Ultimately, a bond ETF's performance will be dictated by the mix of its exposure to interest rates, credit spreads, currencies, credit quality and slices of global bond markets.

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.

Here's a reminder from Bond Fund Performance During Periods of Rising Interest Rates: Some observations up - front: - There are only 500 or so money market funds.

The Citi 30 - Year TIPS (Treasury Rate - Hedged) Index tracks the performance of long positions in the most recently issued 30 - year Treasury Inflation - Protected Securities (TIPS) and duration - adjusted short positions in U.S. Treasury bonds of, in aggregate, approximate equivalent duration to the TIPS.

Barclays U.S. Aggregate Bond Index is a broad - based, market - value - weighted benchmark that measures the performance of the U.S.dollar - denominated, investment - grade, fixed - rate, taxable bond marBond Index is a broad - based, market - value - weighted benchmark that measures the performance of the U.S.dollar - denominated, investment - grade, fixed - rate, taxable bond marbond market.

This proven investment approach has helped Baird's bond funds achieve strong performance and positive industry ratings through various market environments.

As rates have remained relatively range bound since the middle of March 2015, the performance difference between investment - grade and high - yield bonds has investors interested on both sides of the fence.

As interest rates rise, bond prices typically fall, which can adversely affect a bond funds performance.

The two bond indices also had varying performance profiles in increasing and declining interest rate environments.

As mentioned in J.R.'s post: «While it is easy to relate the performance of preferred stock and long - term bonds to interest rate changes, the two asset classes have shown a low correlation to each other over the last three years.

The index measures the performance of the taxable Baa1 — Ba3 rated fixed - rate U.S. dollar - denominated corporate bond market.

Yes, rising interest rates do cause bond prices to fall, and this drags down performance in the short term.

Performance fee of 20 % over hurdle rate (2 - year Government of Canada Bond Yield plus 450 basis points).

The rating agency said it will continue to analyze the creditworthiness of bonds in terms of performance of individual transactions and relative to their specific credit enhancement levels.

Class A shares with sales charges performance reflects the maximum 5.5 % sales charge, with the following exceptions: Class A shares of Hartford Emerging Markets Local Debt, Hartford High Yield, Hartford Inflation Plus, Hartford Municipal Opportunities, Hartford Municipal Real Return, Hartford Strategic Income, Hartford Total Return Bond, Hartford World Bond, Hartford Schroders Emerging Markets Debt and Currency, Hartford Schroders Tax - Aware Bond, Hartford Schroders Emerging Markets Multi-Sector Bond and Hartford Schroders Global Strategic Bond reflect a maximum 4.5 % sales charge; Class A shares of Hartford Floating Rate and Hartford Floating Rate High Income reflect a maximum 3.0 % sales charge; Class A shares of Hartford Short Duration reflect a maximum 2.0 % sales charge.

In the fixed - income portion of the Skellys» RRSP, Predovich suggests they forgo investing in bonds, which have had a dismal performance recently and will likely continue to if interest rates climb.

This tracks the performance of corporate bonds that were rated as investment - grade at the time of issuance but have since been downgraded to non-investment grade.