Sentences with phrase «quality of investment grade»

A quick look at the quality of investment grade municipal bonds compared to the corporate bond market can be seen in the graph below.

Not exact matches

Cannon figures that the average credit quality of a the big banks lending portfolio probably falls halfway between high - yield debt and investment grade.

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.

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.

Vaselkiv pointed out there was a «game changer» in February this year when «Moody's took a chainsaw to $ 150 billion of investment - grade oil and gas bonds, and downgraded very high - quality investmen - grade companies to BB,» which he noted was a one - time opportunity to prove the strength of their portfolios.

The one I come back to is surprisingly simple: Increased demand for quality long - term bonds combined with a limited supply has created ashortage of investment - grade securities.

In pursuance of the Union Budget 2018 announcement, the board also cleared a proposal on changing the investment grade rating from AA to A for corporate bonds, which would boost investment scope while ensuring credit quality.

The big takeaway for those seeking to buy into market weakness: Be wary of buying notionally cheap assets that face challenges (e.g. domestically - focused European assets like U.K. real estate and European banks), and instead focus on assets with relatively attractive valuations and positive fundamental drivers, such as quality stocks, dividend - growth stocks and investment - grade bonds.

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.

The deterioration of quality in the investment - grade market is prevalent and a significant risk to the high - yield market.

By comparing fourth - grade literacy outcomes against the experiences and inputs that produced these results — including indicators of health - care and preschool access, family economic well - being, mental - health and child - welfare services, nutrition, and comprehensive school quality — we can identify gaps in how we are serving children and target investments and reforms to those areas with the greatest potential to improve children's long - term life outcomes.

CC Classic Cars is a recognized leading dealer of high quality driving and investment grade classic cars.

I usually invest only in investment grade stocks, but I would make an exception here based on other factors, including S&P's own quality ranking of A.

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

The manager aims to produce high income returns by investing predominantly in investment grade or high - quality issuers, including the subordinated corporate bond issues of investment grade business.

Two of the largest risks are that the average credit quality of bonds in this sector is well below investment grade and the heavy issuance of zero coupon bonds creates a sector that has one of the longest durations in the municipal bond market.

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.»

Adding a high quality, 100 % investment grade, sleeve such as the S&P U.S. High Quality Preferred Stock Index, into a preferred portfolio can improve portfolio credit quality which may mitigate the impact of a market sequality, 100 % investment grade, sleeve such as the S&P U.S. High Quality Preferred Stock Index, into a preferred portfolio can improve portfolio credit quality which may mitigate the impact of a market seQuality Preferred Stock Index, into a preferred portfolio can improve portfolio credit quality which may mitigate the impact of a market sequality which may mitigate the impact of a market sell off.

Interest rates in these countries are at least 4 % higher than in the U.S. or Europe and the credit quality of most of these countries is investment grade, plus the holdings of the larger ETFs are so widely distributed that unless one had a major financial crisis, similar to the Asian crisis in 1995 or the financial meltdown in 2008, one's investment should weather most isolated storms.

Though you may not risk losing any of your money, losing purchasing power to inflation can be a risk over time with conservative investments, such as high - quality investment - grade bonds.

Accordingly, we are migrating some of our duration exposures to the shorter part of the curve and layering in partially (or fully) rate - hedged investment - grade and municipal bonds out the curve to capture higher - quality spread.

The big takeaway for those seeking to buy into market weakness: Be wary of buying notionally cheap assets that face challenges (e.g. domestically - focused European assets like U.K. real estate and European banks), and instead focus on assets with relatively attractive valuations and positive fundamental drivers, such as quality stocks, dividend - growth stocks and investment - grade bonds.

To mitigate the risk of the company going bankrupt, risk - averse investors will typically purchase high credit - quality investment grade bonds with AAA or AA ratings.

While the portfolio of high - quality bonds may offer additional return potential, long - term investment grade bonds are subject to substantial interest rate risk.

Safety — Depends upon the kind of instruments the fund invests in; Typically is investment grade quality.

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

Since the Fed's last asset purchase settled on December 18, 2014, however, I had downshifted to 50 % -55 % high quality growth, 25 % investment grade income and a (20 % -25 %) bucket of ultra-low yielding cash.

This flight to quality movement also impacted credit spreads, which widened for both investment grade and high yield corporate bonds, negatively impacting the returns of bonds in those sectors.

The high - quality index includes investment - grade constituents only, whereas 44 % of the broader preferred index includes speculative - grade stocks and another 14 % is not rated.

These are bonds paying a high rate of interest because the issuers are of lesser credit quality than government and investment - grade corporate bonds.

In addition, these funds must invest primarily in investment - grade fixed - income securities, such that the average credit quality of the portfolio as a whole is investment grade (BBB or equivalent rating or higher) and not more than 25 % of the portfolio's holdings are invested in high yield fixed income securities.

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.

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 dollar.

Investment grade fixed income (high - quality bonds) is and always will be a very important part of a diversified investment Investment grade fixed income (high - quality bonds) is and always will be a very important part of a diversified investment investment portfolio.

Therefore, Cerulli says, within the context of high - quality fixed - income portfolios, insurers will «generally try to add credit risk on the margin, taking advantage of an individual credit falling a notch or two either within the investment - grade universe, or into the upper reaches of high - yield / non-investment-grade spectrum.»

Suppose you own a corporate bond rated BBB (lower - investment - grade quality) that is yielding 7.00 % and you find a triple - A-rated (higher - investment - grade quality) corporate bond that is yielding 6.70 %.1 You could swap into the superior - credit, triple - A-rated bond by sacrificing only 30 basis points (one basis point is 1 / 100th of one percent, or.01 %).

Seeks to generate higher levels of income by having the flexibility to invest a portion of the portfolio in lower credit quality investment - grade bonds2

The inclusion of lower credit quality investment grade bonds may introduce additional risk for the portfolio.

Investments in below investment grade quality debt instruments can be more volatile and have greater risk of default, or already be in default, than higher - quality debt instruments.

I also screened for investment grade quality and a consistent record of both paying and increasing dividends.

Investments are restricted to fixed - income securities with an average credit quality rating of double - A and minimum credit quality rating of investment grade.

Investment grade debt instruments are rated at least Baa or its equivalent by any NRSRO or are unrated debt instruments of equivalent quality.

Gregory Davis, head of Vanguard Fixed Income Group, says new fund invests primarily in high - quality bonds across the investment - grade market, including Treasury, mortgage - backed, corporate and asset - backed securities of varying yields and maturities.

Crossovers allow investors to still have the quality associated with investment grade, while gaining a few extra points of yield.

These institutions will continue to be credit quality conscious first and foremost, as will individual holders of investment grade, tax - free, municipal obligations.

Because of their typically attractive yields and investment - grade credit ratings, fixed - rate capital securities can help investors achieve enhanced returns without sacrificing credit quality.

Similar to the Venn diagram in which the overlapping section of circles is the focus, the S&P U.S. High Quality Preferred Stock Index is designed to measure preferred securities that are constituents of both the fixed - rate and investment - grade preferred stock indices.

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.