High -
quality bonds tend to go up in value and accrue more interest, similarly to cash — which has no yield — but does appreciate dramatically, when everything else goes down.
Not exact matches
This switch from raising funds in equity markets to
bond markets would, other things equal, also
tend to raise concerns about credit
quality, as corporate leverage would
tend to rise.
By contrast, high -
quality bonds such as those found in investment - grade corporate funds like the iShares 1 - 3 Year Credit
Bond ETF (CSJ A-89) and the iShares iBoxx $ Investment Grade Corporate
Bond ETF (LQD A-66), etc.), or in Treasury portfolios such as the iShares 1 - 3 Year Treasury
Bond ETF (SHY A-97) or the iShares 10 - 20 Year Treasury
Bond ETF (TLH B - 65), etc.)
tend to buffer portfolio volatility to a much greater degree.
Downside protection — high -
quality bonds have
tended to outperform the stock market during downturns, when many investors are attracted to a
bond fund's income stream and principal protection
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.
Yes, in a different environment, a leveraged purchase of lower
quality bonds can be a great idea, though I
tend to purchase the equity instead.
On the other hand, floating rate loans
tend to be lower -
quality bonds with higher default risk.
On the back of the deleveraging campaign and rising default risks, market participants
tend to seek high
quality bonds.
As you observed, the ones that has lower yield lost less in general
tends to have higher
quality bonds (often less junky)
Downside protection — high -
quality bonds have
tended to outperform the stock market during downturns, when many investors are attracted to a
bond fund's income stream and principal protection
Bonds with improving credit quality tend to become more liquid, and vice-versa for bonds with deteriorating credit qua
Bonds with improving credit
quality tend to become more liquid, and vice-versa for
bonds with deteriorating credit qua
bonds with deteriorating credit
quality.
One note of caution: The
bonds included in this average
tend to be high -
quality, financially secure debt instruments.
A relationship with parents with lower
quality of emotional
bonds seems to affect more boys than girls in terms of problematic Facebook use, maybe because girls also
tend to be a source of support for others, more than boys (Ma and Huebner 2008), being more connected to their peers (Claes 1992), and more protected of problematic use by this reason.