Sentences with phrase «potential than bond»

Match the interest rate sensitivity of the index, and the credit quality, but choose bonds that had more potential than the bonds in the index.

Not exact matches

But potential tax implications get trickier with bonds purchased in the secondary market at a premium or discount — in other words, investors that paid more or less than the face value of the bond.

So while these «fallen angel» bonds have the potential to be intrinsically higher quality than debt originally issued at the junk or high - yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.

When investors begin to focus on the potential for Fed rate hikes, short - term bonds will almost certainly begin to experience lower returns and — depending on the type of fund — greater volatility than they have in years past.

Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).

Bonds, as measured by the Barclay's Capital Aggregate Bond Index, are yielding less than 2 %, while cash has very little return potential at all.

Income potential is higher than investment - grade bonds to offset the high level of default risk.

Then again, the long - term potential from shares, say, does look much better than from bonds.

Income potential is higher than U.S. and developed nation bond funds, given the additional risks and longer durations.

Income potential is generally higher than that paid by U.S. government bonds of similar duration and varies depending on the fund's duration and the quality of its bonds.

Nevertheless, the apparent success of the ECB's policy in overcoming the threat of deflation increased speculation about a potential tightening of monetary policy, possibly even before the cessation of the central bank's bond purchases — scheduled to continue for at least the rest of the year — and in the wake of the ECB meeting pushed market estimates of the odds of a rise in official interest rates before the end of 2017 to more than 50 %.

Considered to be a higher risk for loss than any other type of investments such as bond funds or money market funds they also have the potential to return the highest potential return in investment.

Indeed, they posit that one of the potential reasons the five bonds were selected for transfer is that they were issued out of the bank's Lisbon headquarters rather than out of international branches such as London (where pari passu has its own distinct legal history).

The bond created between potential partners takes a different path than normal dating relationships.

Remember, online dating is about more than making a good first impression — it's about finding the potential for a bond that lasts.

A household name, the character of Bond has enough cultural heft and influence that he warrants interpretations from independent sources besides, and given that Sean Connery was lured out of a twelve - year retirement from the character — hence the title, Never Say Never Again — as well as the room for improvement left by the original Thunderball, the film had the potential to be more than just a cynical cash - in.

While it is true that preferred stocks may see price declines as traditional long - term bonds would, the losses may be more than offset by the potential yield.

EconStudent — The volatility associated with REIT's would put them closer to stocks than bonds, however I like their potential for increasing payouts in line with inflation.

If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as stocks) into a lower risk asset class (such as government bonds or money market funds).

This will also dampen your portfolio's volatility in the long term, without the shrivelling in its potential that you'd get if you invest significantly in bonds yielding little more than 4 %.

Wong wants a return potential of about 3 % to 5 % higher than the government bond rate, which puts him into the 5 % to 7 % annual return range.

Higher Credit Quality, Lower Volatility and Comparable Yields Preferreds have significantly higher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds provide QDI.

Municipal bonds can play an important role in an investor's portfolio, offering a higher tax - equivalent yield than many taxable fixed income alternatives, and the potential for portfolio diversification to stocks and other types of bonds.

Investment grade corporate bonds typically offer better return potential than Treasury bonds, and investment grade debt allows investors to pursue those returns without adding as much risk as high yield bonds.

High yield bonds typically offer better return potential than Treasurys or investment grade bonds as a way of compensating investors for taking on greater risks.

As a general rule, stocks offer greater potential for gains than bonds do, but at a greater risk.

Also consider the potential benefits of selecting investments from more than one asset class: When stocks are particularly hard hit due to changing conditions, bonds may not be affected as dramatically.

Income potential is higher than investment - grade bonds to offset the high level of default risk.

Income potential is generally higher than that paid by U.S. government bonds of similar duration and varies depending on the fund's duration and the quality of its bonds.

It is understandable due to the potential to reap far heftier returns from stocks than you would from bonds.

The potential leverage created by use of derivatives may cause the Portfolio to be more sensitive to interest rate movements and thus more volatile than other long - term U.S. government bond funds that do not use derivatives.

High yield, lower rated bonds involve a greater degree of risk than investment grade bonds in return for higher yield potential.

Corporate bonds tend to carry a higher level of risk than government bonds, but they generally are associated with higher potential yields.

By nature, stocks are risker than bonds, especially default - risk - free Treasuries, but with that risk comes the potential for greater reward.

Seeking opportunities through mortgage - backed securitiesBroad securitized opportunities: The fund invests in mortgage sectors, including agency MBS and CMOs, and non-agency RMBS and CMBS, and ABS.Higher potential returns: By investing in mortgage - backed bonds, the fund can offer the potential for higher returns than an investment strategy focused only on agency MBS.Leading research: The fund's portfolio managers use proprietary models to assist in the evaluation of mortgage - backed bonds and to manage the fund's interest - rate risk.

Historical market data shows the evidence for this relationship between risk and potential rewards: Since 1926, stocks have generated much higher compound annual returns than bonds — 10.0 % vs. 5.5 % — because stocks are a more volatile investment.

They sound much more exciting and exclusive than stocks and bonds, and are typically sold as having higher potential returns or diversification benefits that plain old stocks and bonds can't offer.

A host of others simply picked the most conservative choices (bond or money market funds) rather than making any attempt to learn about the funds with more potential for growth.

If retirement is many decades away, you generally want to invest more in stocks than bonds, as this will provide the best potential for good returns.

And though their risks are greater, dividend - paying stocks also offer more capital - appreciation potential than most bonds do.

This also means the interest rate on a corporate promissory note is likely to provide a greater return than a bond from the same company — high - risk means higher potential returns.

Even given a wide range of potential future outcomes, it appears very likely that stocks will always provide substantially better returns than bonds.

Nomura Securitiea» Siobhan Morden, head of Latin America fixed income strategy, has written about the potential for a glut of Argentina bonds, and commented this week that second - tier provinces look less attractive than bonds issued by the Province of Buenos Aires, which includes the city of that name and is the most liquid provincial market.

After you have 4 to 6 months worth of emergency money, start channeling money into mutual funds, bonds and stocks, anything with a higher potential yield than cash?

Government bonds and corporate bonds have more moderate short - term price fluctuation than stocks but provide lower potential long - term returns.

With lower return potential than stocks, overcoming the impact of management fees and trading costs in bonds should be more difficult, especially in the lower - yielding investment - grade arena.

It is pretty clear to us that a balanced portfolio made up of stocks and bonds is less risky and has a higher potential return than one made up of just bonds.

This study concludes that naturalistic DDS elicits more attention from dogs than ADS and has the potential to strengthen the affiliative bond a human has with a dog.