Sentences with phrase «quality high yield bond»

It's kind of like a high quality high yield bond.
We favor a selective approach to metals and mining companies» debt, with a preference for higher - quality high yield bonds.
In it I argued that higher quality high yield bonds were overvalued, but that CCCs might still have some play.

Not exact matches

The assumed discount rate utilized is based on a broad sample of Moody's high quality corporate bond yields as of the measurement date.
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.
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.
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.
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.
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.
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 flHigh Yield Bond Fund is a concentrated portfolio made up of liquid securities, focused on high quality non-investment grade bonds with strong cash flhigh quality non-investment grade bonds with strong cash flows.
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.
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.
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.
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.
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.
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.
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.
With Treasury yields so low, most high quality bonds are not attractive now.
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 providHigher 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 proviQuality, 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 providYields 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 providhigher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds proviquality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds providyields with potential tax advantages on income as some preferreds provide QDI.
We can (and have) capitalized on a wide range of opportunities in the bond market, including in higher and lower quality bonds, strategic and high - yield bonds, floating - rate securities and even total - return funds, which aren't fully invested in bonds.
While high quality ratings often imply lower yields, the S&P International Corporate Bond Index has a weighted average yield - to - worst of 2.16 %, which is higher than the average yields of U.S. treasuries and comparable to the 2.26 % yield of the S&P 500 AAA Investment Corporate Bond Index.
The portfolio you see here would yield a high amount of current income from the bonds and would also yield long - term capital growth potential from the investment in high quality equities.
These high - quality fixed income assets seek to provide higher yields than other bonds after taxes (and recently longer maturities have been outyielding Treasuries even before tax).
High - yield bonds are issued by corporations with lower credit quality ratings.
Some purchase highly rated bonds that may pay the fund a lower interest rate but are considered less risky, while others focus on lower - quality, higher - yield bonds.
Lower ‐ quality fixed income securities, known as «high yield» or «junk» bonds, present greater risk than bonds of higher quality, including an increased risk of default.
You can find many bonds issued by high - quality companies that are yielding more than 6 %.
In a perverse sense, it makes sense that someone will write a book pushing high quality bonds when the yields are so low.
David Rosenberg favors high quality bonds over stocks in this environment, which is notable given the low yields.
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