Sentences with phrase «quality junk bonds»

A fund that focuses on lower - quality junk bonds will often sport a higher yield.

Jettison a lower quality junk bond ETF for a higher quality investment grade corporate bond ETF like iShares Intermediate Credit (CIU).

Not exact matches

You can invest in bond funds by stated maturities (short - term, intermediate - term, long - term), credit quality (treasuries, junk bonds, investment grade corporate bonds) or pretty much any other way you can separate bond investments.

The fund can purchase securities of any credit quality, including those in default, but it will primarily invest in investment - grade debt, with no more than 20 % of the portfolio invested in junk bonds.

When people see banks browbeating the bond rating agencies and accounting firms to whitewash the quality of what they're pawning off on their customers, when they see bank lobbyists getting Washington to block state prosecutions of financial fraud so as to clear the way for more predatory lending and false packaging of the junk securities they're selling and to win the right not to reveal their true financial position, there's a good reason not to buy what's in these black boxes.

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.

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

Spreads on the lowest quality segment of the «junk» bond category, «C» rated bonds, have narrowed by an extraordinary 30 percentage points since late 2001, to around 5.5 percentage points.

The investor should note that vehicles that invest in lower - rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.

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.

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.»

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.

Credit ratings for bonds below these designations («BB», «B», «CCC», etc.) are considered low credit quality, and are commonly referred to as «junk bonds.»

I would add in other asset classes as well: credit default, emerging markets, junk bonds, low - quality stocks, the toxic waste of Asset - and Mortgage - backed securities, and private equity.

Junk bonds involve a greater risk of default or price changes due to changes in the issuer's credit quality.

Over the past 15 years, the average junk bond fund has returned an annualized 6.9 % in interest and principal gains, compared with 3.9 % for an index of high - quality U.S. bonds.

Vanguard's high - yield corporate bond fund, which invests in low - quality «junk» bonds, made money in 2013, returning 4.5 %.

The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.

Because they pose a greater risk of default than high - quality bonds, junk issues must yield more to attract buyers.

High - yield securities (junk bonds) have speculative characteristics and present a greater risk of loss than higher quality debt securities.

In general, the funds keep maturities between one and five years, and they stick to the highest - quality bonds — no high - yield junk.

Investor confidence in low - quality bonds persists, as the default rate among junk - rated companies fell to a six - year low of 1.5 % in March.

Since this fund is composes of higher quality issues, the risk of default is modest compared to junk bonds, but of course, we only consider US government debt as the sole risk - free bond issuer.

Quality is paramount in our selection process and we avoid junk bonds, mortgages and derivatives.

Therefore, when the ratio of junk bond indexes to higher - quality corporate bond indexes rises, we know that investors are aggressive.

High Yield Securities Risk: High yield securities or unrated securities of similar credit quality (commonly known as «junk bonds») are more likely to default than higher rated securities.

It invests primarily in investment grade debt securities, but may invest up to 20 % of its total assets in junk bonds that are rated B or higher by Moody's, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality.

After commissions, these days it's next to impossible to find a 4 % yield (5 - yr maturity) in anything but low quality unsecured (junk) bonds.

That said, research also shows that investment - grade bonds as a group, which includes not just Treasuries but government agency issues and high - quality corporates (though not high - yield, or junk, bonds), can also provide solid diversification during periods of stock market turbulence.