Sentences with phrase «quality of the issuer»

Lower - quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

• Lower - quality debt securities generally offer higher yields but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

These Lower - quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

It's important to pay attention to changes in the credit quality of the issuer, as less creditworthy issuers may be more likely to default on interest payments or principal repayment.

Lower - quality fixed income securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

The spread for any particular floater will be based on a variety of factors including the credit quality of the issuer and the time to maturity.

Other factors to consider when looking at individual bonds include the credit quality of the issuer and the time until the bond matures.

@Kevin: It is virtually impossible for retail clients buying GICs or even parking cash in their savings and chequing accounts to make a judgement on the credit quality of the issuer.

The credit quality of the issuer.

Lower - quality fixed - income securities generally offer higher yields, but also carry more risk of default or price changes due to potential changes in the credit quality of the issuer.

Certain fixed income ETFs may invest in lower quality debt securities that involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

Risk Considerations: Investments in debt instruments may decline in value as the result of declines in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment, underlying collateral, or changes in economic, political, issuer - specific, or other conditions.

Most zero - coupon municipal bonds are rated A or higher by the rating agencies, but it's still important to check the quality of the issuer.

By the quality of the issuer.

• What is the quality of the issuer's relations with communities, customers, employees, suppliers and the environment?

These lower - quality debt securities involve greater risk of default or price change due to potential changes in the credit quality of the issuer.

Researching the credit quality of the issuer requires access to information and the know - how to evaluate relative value between bonds.

Their prices may be affected by the perceived credit quality of their issuer.

Not exact matches

«Due to the fear of collecting thousands of signatures needed to sign off on the types of strategic decisions common among pre-IPO companies, higher - quality issuers — particularly those with other financing options — are less likely to crowdfund without a single - purpose vehicle,» Tommarello says.

«We believe it critical for a listing exchange to ensure a high - quality displayed quote to reduce the cost of capital and share price volatility for its issuers, and in the absence of broader market structure reform, exchange - paid quoting incentives are a necessary mechanism in a highly fragmented US marketplace to support liquidity for listed companies,» Cunningham said in a letter to clients emailed to Business Insider.

Rating service Moody's tracks covenant quality, essentially a measure of standards that bond issuers must meet, and reported Thursday that the latest reading remains near record highs, which indicates weak restrictions.

Hence, although there may be no shortage of quality issuers, there seems to be a shortage of quality sovereign securities.

Though the Near - Term Tax Free Fund seeks minimal fluctuations in share price, it is subject to the risk that the credit quality of a portfolio holding could decline, as well as risk related to changes in the economic conditions of a state, region or issuer.

MINT is a low - cost, actively - managed fund that seeks higher current income than the average money market mutual fund by holding a hodgepodge of high - quality and ultra-short term USD - denominated debt issued by domestic or foreign issuers.

«Element Group founder Stan Miroshnik, whose investment bank is focused on digital token crowd sales and ICOs, calls it the somewhat inevitable bifurcation between «tier one issuers and everybody else,» wherein the «big, quality offerings are drawing the majority of capital.»

Changes in the financial condition of an issuer or counterparty, changes in specific economic or political conditions that affect a particular type of issuer, and changes in general economic or political conditions can increase the risk of default by an issuer or counterparty, which can affect a security's or instrument's credit quality or value.

The group classified as «fallen angels» are issuers that are declining in credit quality for a variety of reasons.

For example, the quality of the covenants protecting lenders has been declining for some time and «add - backs» — which allow issuers to inflate some measures of earnings and thus creditworthiness — are on the rise.

They want to stay on the short end of the yield curve to control their interest rate risk but are taking on an increasing amount of lower credit - quality issuers in an attempt to increase their yield.

Credit quality has also long been eroding in some pockets of the credit market, with the thirst for yield leading to a more favorable environment for issuers at the expense of lenders.

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.

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.

This style of investing assumes there is a small likelihood of a default on a subordinated high yield issue from a high - quality issuer such as Vodafone, HSBC Holdings or Prudential for example.

Credit quality of a bond issuer is critical.

But despite efforts to ensure the safety of synthetic ETFs some issuers — e.g. iShares — only use physically replicating ETFs as this allows them greater control of the quality of the ETFs.

Our extensive selection of bonds covers the entire fixed income market, allowing you to narrow your choices by issuer, maturity, yield, and credit quality.

Although the fund only buys high - quality investments, investments backed by a letter of credit have the risk that the provider of the letter of credit will not be able to fulfill its obligations to the issuer.

Like other bonds, issuers are rated so the lower the risk of default by the government entity, the higher the quality of the bond.

Higher quality issuers that are able to tap the debt markets in scale generally do so because the soundness of their balance sheet allows it.

The top issuers in the Markit iBoxx US Dollar Liquid Investment Grade Index include quality firms like Verizon, Microsoft, JPMorgan Chase, Bank of America and Apple (Source: iShares, as of 10/16/2017).

Quality debt depends on the reliability of the issuer: The greater the ability to meet interest and principal payments, the higher the credit rating by the major rating agencies.

While the two main categories of funds are those that provide taxable or tax - exempt income to investors, bond funds also vary based on maturity (short - term, long - term), type of issuer (municipal, corporate, etc.), strategy, investment objective and credit quality.

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

Read the prospectus for your fund and it will have the average duration as well as information about the issuers of the bonds it does invest in (govt, agency, mortgage backed, foreign, high quality corporate, etc) and whether there are constraints on the target average maturity.

Filed Under: Daily Investing Tip Tagged With: Investing, quality of a company's management, Stock Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Besides analyzing the specific type of bond involved and the issuer's credit - worthiness, there are several other factors to consider: the trends within the issuer's sector; whether the corporation is best of breed for its particular sector; the quality of the management team; and the overall economic environment.

When Apple decided to issue bonds in the maple market in the summer of 2017, the deal was greeted with open arms by Canadian investors thirsty for access to such a high - quality foreign issuer.

The ratings or credit quality of such security (and that of its issuer) may deteriorate, which could negatively affect the market price.

All of the leading bank card issuers reported continued improvement in key credit quality metrics for their credit card portfolios in 1Q11, as seen in the following charts.