Not exact matches
That means looking
at the fund's objective, average maturity, credit
quality, yield and the composition of the holdings by
bond type.
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?
This way, if a bear market occurs, you have a year of cash becoming available
at the maturity date so that you do not have to sell stocks, and in a bull market you can buy new
bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high
quality bonds give versus cash or CDs.
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.
Using this approach,
at least 50 % of a stock portfolio would be invested in the stocks of larger firms, and
at least 50 % of a
bond portfolio would be invested in high -
quality bonds (government
bonds, high -
quality corporates and municipals).
On average, high -
quality corporate
bonds currently have yields that are
at least one percentage point higher than Treasury
bonds.
So, market participants who buy and sell
bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit
quality); the velocity
at which they may be received (prepayment or extension); their relative value to other
bonds; and their interest rates relative to prevailing rates.
Founded in 1880 as California's 29th
bonded winery, Geyser Peak has been
at the forefront of
quality wine production since its earliest days.
Designed as a source of inspiration for our love of modern & vintage style, Kiokko strives to offer stylish baby accessories with simple designs
at premium
quality, resulting in a passionate
bond of practicality and perfection.
At those moments, the «
quality» emerged from the sheer quantity of time spent together; familiarity building up until quietly, below the surface, a
bond of trust was forged, memories were made.
Earthworks Institute strives to improve the
quality of life for residents of the Greater Rochester area by providing education and mentoring programs that teach invaluable life - skills and social responsibility, while
at the same time building healthy, lasting
bonds between land and community.
A source had told Newsday that it will include
at least $ 2 billion, probably in a
bond act, to address water
quality concerns statewide.
Instead, Wang and his colleagues identified a relationship between a feature of the
bonds linking carbon and hydrogen in methane molecules — a
quality they deemed «clumpiness» — and the rate
at which methane was produced: The clumpier the
bond, the slower the rate of methanogenesis.
The movie's rich three - strip Technicolor gives the whole thing a picture - book
quality, yet what we're seeing here with Flynn
at his zenith is actually the forebearer of James
Bond, Indiana Jones et al: the sheer essence of the celluloid action hero.
«To construct / renovate classrooms, restrooms / school facilities to improve the
quality of education
at Brittan Elementary School, build a gymnasium for school and community use; repair, construct, acquire classrooms, sites and equipment, shall this Brittan Elementary School District measure be adopted to issue $ 4,000,000 of
bonds at legal rates, levy approximately 3 cents / $ 100 assessed value, generating approximately $ 260,000 annually while
bonds are outstanding, with annual audits, independent citizens» oversight, NO money for salaries, all money staying local?»
«To improve the
quality of education; make health and safety improvements; modernize / construct classrooms, restrooms and school facilities: and improve P.E. fields and facilities; shall Laton Joint Unified School District issue $ 7,000,000 of
bonds at legal rates, averaging $ 421,000 annually as long as bands are outstanding
at a rate of approximately 6 cents per $ 100 assessed value, with annual audits, an independent citizens» oversight committee, no money for salaries, and funding that can not be taken by the State?»
Even though this new car looks a lot like the model it replaces, the folks
at Morgan point out that there's an all - new, hand - crafted,
bonded and riveted aluminum body while the interior now has better
quality leather upholstery and comfort - oriented features like cruise control and a new touch screen infotainment system.
So, market participants who buy and sell
bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit
quality); the velocity
at which they may be received (prepayment or extension); their relative value to other
bonds; and their interest rates relative to prevailing rates.
Although the advisor intends to invest
at least 65 % of the fund's net assets in municipal
bonds rated investment grade or in unrated municipal
bonds that fund management believes are of comparable
quality, it is possible that in the future the fund could invest up to 100 % of its assets in «junk
bonds.»
If I am correct (and I am not
at all certain that I am), bank
bonds are treated as high
quality reserves for making new loans.
«In our view this is probably a generational opportunity for high
quality corporate
bonds and provincials and federal agency
bonds,» says Scott Lamont, head of fixed income
at Phillips, Hager & North Investment Management Ltd., and manager of the firm's
bond fund, a top - rated performer on the MoneySense Best Mutual Funds Honor Roll.
(2) U.S. financial expert Harold Evensky's version of the bucket strategy calls for maintaining two years worth of spending needs in a highly liquid «cash flow reserve account» and
at least three years of spending needs in high -
quality short - term
bonds.
«The big question for advisors with HNW clients is whether this cap on SALT deductions will significantly weaken the credit
quality of
bonds being issued as tax - exempt by local authorities,» says Jason Staley, an advisor
at Pittsburgh - based Schneider Downs Wealth Management Advisors, which manages more than $ 1.3 billion.
Other factors to consider when looking
at individual
bonds include the credit
quality of the issuer and the time until the
bond matures.
A high
quality bond rating of AAA from Standard and Poor's, for example, means the
bond is of the highest investment
quality, suggesting the company will have the ability to pay both principal and interest
at maturity.
Franklin Income & Wellesley Income are NOT nearly identical - look
at allocation of stocks /
bonds and
quality and term of
bonds between the two funds.
Credit
quality1 A
bond's credit
quality indicates the likelihood that its issuer will fulfill its obligation to pay the interest owed and repay the principal
at maturity.
Swapping for
quality becomes especially attractive for investors who are concerned about a potential downturn within a specific market sector or the economy
at large, as it could negatively impact
bond holdings with lower credit ratings.
Barclay's U.S. Aggregate
Bond Index is made up of the Barclay's U.S. Government / Corporate
Bond Index, Mortgage - Backed Securities Index, and Asset - Backed Securities Index, including securities that are of investment grade
quality or better, have
at least one year to maturity, and have an outstanding par value of
at least $ 100 million.
If you want to pick your own non-core high - yield North American corporate
bond fund, TD offers the TD High Yield Bond Fund, which focuses mainly on BB and B rated issues at the higher quality end of below - investment grade and mostly hedges its U.S. currency exposure back to the Canadian dol
bond fund, TD offers the TD High Yield
Bond Fund, which focuses mainly on BB and B rated issues at the higher quality end of below - investment grade and mostly hedges its U.S. currency exposure back to the Canadian dol
Bond Fund, which focuses mainly on BB and B rated issues
at the higher
quality end of below - investment grade and mostly hedges its U.S. currency exposure back to the Canadian dollar.
I am not unsympathetic here as public pension plans essentially say, «Well we have to earn enough to meet our actuarial funding targets, and
at this point,
bonds of the highest
quality don't help us.
If company ABC (Rating: AAA) wanted to issue
bonds at 5.00 % their competitor XYZ (Rating: AA) would have to pay a higher yield to attract the equivalent investment because of the perceived lesser
quality of their debt.
Running a small asset management shop like I do,
at times like this I suggest to clients that they might want more
bonds (with me that's short and high
quality now), but few do that.
The only uncorrelated classes
at present are cash and
bonds (the higher
quality the better).
A quick look
at the
quality of investment grade municipal
bonds compared to the corporate
bond market can be seen in the graph below.
Most advisors recommend using a combination of risky and risk - free assets, or
at least using low risk assets (like high
quality short - term
bond funds) to reduce the risk of your portfolio to a level that's appropriate for you.
Our fixed income strategy looks
at corporate and government
bond funds, higher and lower
quality bonds funds and global and domestic
bond funds.
In addition, unsupervised correspondent lenders (as opposed to brokers) must provide business and personal credit reports, audited financial statements,
quality control plans, sanctions letters and funding programs, and finally post a fidelity
bond of
at least $ 300,000 and carry
at least $ 300,000 of errors and omissions insurance.
At first glance, you might be tempted to skip high -
quality bonds altogether.
Yield curve is a line that plots the interest rates,
at a set point in time, of
bonds having equal credit
quality, but differing maturity dates.
We also believe corporate
bonds will benefit from this legislation, as the lower tax rate and potentially improving balance sheets from repatriation could enhance credit
quality at many companies.
Municipal
bonds priced
at a premium often provide the same return as par
bonds that have the same credit
quality and structure — with the added potential benefit of higher cash flows and lower market volatility.
Ben Carlson
at A Wealth of Common Sense talks about lessons learned during this market sell - off and the proper place of high -
quality bonds in a portfolio.
«
At least in the next 10 years, high -
quality bonds should play an important role in diversification and dampening risk for clients.»
But, what are you experiencing if anything on the asset side of your portfolio
at present, I assume that it's just ordinary payments of cash flows from your mortgage
bonds and other assets, because you have a fairly high
quality portfolio we use the way the rating agencies rate them.
The time will come to end the high
quality long
bond trade, but
at present, who knows?
Though it may have seemed a good idea
at the time, allowing for lower
quality collateral has caused the creditworthiness of several catastrophe
bonds to suffer as Lehman defaulted, and as losses on subprime mortgages rose.
The fund seeks to provide total return through a combination of current income and capital appreciation by investing
at least 80 % of its net assets in
bonds and investments that provide exposure to
bonds, including global debt obligations of any credit
quality, maturity or duration, and derivatives.
A yield curve is a line that plots the interest rates,
at a set point in time, of
bonds having equal credit
quality but differing maturity dates.
Most
bonds also have a credit
quality rating, which is an estimate of the future risk that the
bond issuer could fail to make regular payments or pay back the loan
at the end of the period.