Sentences with phrase «quality bond yields»

But the long - term return on a mix of stocks and bonds is still likely to be higher than the return you'll get on money you invest in an annuity, as annuity payouts are largely tied to high - quality bond yields.

In other words, equity dividends are higher by a third of a percentage points than quality bond yields, and that's before the dividend tax credit and before any capital gains.

Not exact matches

«The credit quality, this move up in interest rates, this loss of a four - decade uptrend in bonds, downtrend in yields, that's the source of the volatility which I think far surpasses these amazing developments technology has come across in the last couple of decades,» said Gordon.

The assumed discount rate utilized is based on a broad sample of Moody's high quality corporate bond yields as of the measurement date.

That means looking at the fund's objective, average maturity, credit quality, yield and the composition of the holdings by bond type.

In the credit markets, both investment - grade and high - yield corporate bonds had negative returns for the first time in eight quarters, with down - in - quality subsectors in each unconventionally outperforming higher quality ones.

For example, some investors may have taken on more risk in their portfolios in recent years by moving into lower - quality bonds or dividend stocks, in an attempt to generate additional yield.

A high quality muni - bond portfolio can yield close to 4 % tax free, with inflation essentially not existent and equities at an all time high I'm curious if there is a flaw in my logic?

Compared to high - quality bonds, both dividend stocks and high - yield bonds have historically had higher volatility overall and higher correlation to the overall stock market.

Another way is to boost yield is to relax credit quality a little by opting for investment grade corporate bonds instead of triple - A government treasuries.

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

Quality, five - year corporate bonds are yielding about 2.4 %.

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.

Blackrock Muni Yield Investment Quality (MFT) is a closed end fund that seeks current income exempt from regular Federal income tax through investment in insured investment grade municipal bonds.

The High Yield Bond Fund is a concentrated portfolio made up of liquid securities, focused on high quality non-investment grade bonds with strong cash flows.

But if interest rates and bond yields had decreased in the meantime, you wouldn't be able to generate as much income as before with the same amount invested in a similar quality bond.

Small stocks and many international stocks don't pay much income; income from high - yield and foreign bonds may be higher than for high - quality bonds, but also more variable.

Further out in the credit quality spectrum, U.S. - based high - yield «junk» bond funds

On average, high - quality corporate bonds currently have yields that are at least one percentage point higher than Treasury bonds.

The market's continuing refusal to countenance the long - term reality described above has proven to be a recurring source of profits for those who are willing to buck the crowd and embrace the trend in falling long - term bond yields of the highest quality borrowers.

While spreads between yields on highly - rated corporate bonds and government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate credit quality.

These days you may get an extra 1 % yield from quality corporate bonds, but is it really worth it?

The minimal dividends from traditional CDs and high - quality Treasury bonds leaves little to be desired when compared to corporate or municipal debt yielding magnitudes of greater income.

, but I think it's a mistake for risk averse or diversified investors to completely give up on high quality bonds because they're worried about poor returns from low yields.

-- Income more difficult to provide clients, in a zero rate environment many will suggest high yield corporate bonds and leveraged loans to supplement traditional fixed income but many clients are not willing to sacrifice quality for a higher yield.

This is a market - based estimate of the amount of fear in the bond market Bass - rated bonds are the lowest quality bonds that are considered investment - grade, rather than high - yield.

Yet low nominal gross domestic product growth and aging populations argue for lower bond yields than in the past — and sustained demand for high quality bonds.

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.

High Yield bond portfolios concentrate on lower - quality bonds, which are riskier than those of higher - quality companies.

NOTE: High - yield bonds are subject to additional risks, such as increased risk of default and greater volatility, because of the lower credit quality of the issues.

High - yield bonds are issued by corporations with lower credit quality ratings.

The result is a selection of bonds with higher volatility, lower credit quality, and higher yield than the broader high - yield market.

Unique to bond funds, you may also want to consider the fund's average duration, credit quality and yield.

We favor a more even yield - curve exposure today (with positions across maturities) and a more defensive (higher - quality) credit profile — as volatility and heightened credit concerns could lead to significantly wider spreads in the high - yield - bond market.

Property has bond - like qualities, in that it represents a solid asset that produces an income via rents, where the yield rises as the price falls and vice-versa (provided the rental income doesn't fall, of course).

For example, the yields on CCC - rated high yield bonds are quite low on a 10 - year basis given the historically higher default rates in this low - quality portion of the market.

These bonds have done little in 2015 due to the low yields of these high quality and often short term bonds.

We favor a selective approach to metals and mining companies» debt, with a preference for higher - quality high yield bonds.

In general, bonds are divided into two broad levels of credit quality — investment grade (IG) and high yield (HY).

High yield bonds are better known as junk bonds because the credit quality of the underlying bond issuer is low.

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.

These bonds are typically high - quality and very liquid, although yields may not keep pace with inflation.

Compare this to perhaps a slightly higher fee, active high yield bond manager who only holds more liquid, higher quality positions with an investor base perhaps not as eager to hit that sell button during periods of market turmoil.

Investors and fund managers search for yield, extend maturities, reach for lower credit quality and shift assets from short term floating rate money market funds to bonds, bond funds and similar investments.

Many bond managers like to own RMBS for its high credit quality, liquidity, and attractive yields, but the problem is this: when interest rates move, the RMBS does what you don't want to see happen.

Other investments are often touted as a substitute for high - quality bonds, including dividend stocks, preferred shares, real estate investment trusts (REITs) and high - yield bonds.

A Treasury yield (or high / moderate quality corporate bond yield) is substituted for the cost of equity capital.

Because they are more equity - like, high yield bonds have intrinsic risk that is independent of the level of yields in high quality bonds, the leading example of which are Treasury bonds.

Bond yields remained stubbornly high; it was a great time to invest in high quality long bonds, particularly long zero coupon bonds.

Even if a bond fund manager has discretion with their maturities, I might opt for GICs over a lot of bond funds these days because reasonably conservative, high - quality bonds might only be paying 3 % yields right now.