Sentences with phrase «rate bond exposures»

Not exact matches

For Business Insurance and Bond & Specialty Insurance, retention is the amount of premium available for renewal that was retained, excluding rate and exposure changes.

I sent out to some people last Wednesday why I thought the CDS market would outperform ETF's, and that is still my view, and has a lot to do with the bonds that make up the high yield index and their rate risk exposure for some, and horrible convexity for others.

Since bond prices fall as interest rates rise, this possibility has many investors worried about their exposure to interest rate risk.

Instead, I believe it's prudent to extend allocations in other bond sectors and exposures that offer similar interest - rate sensitivity to Treasuries, but with more compelling investment cases.

The effect of low interest rates is unimportant as long as the portfolio carries minimal cash and bond exposure.

Shunning Treasury bonds in the first half of the year and lightening up on interest - rate exposure turned out to be mistakes, he wrote.

While Treasury bonds offer the purest exposure to changes in rates, other asset classes have high sensitivity too.

In April, the long end of the yield curve underperformed, and as municipal bonds have more of their interest rate exposure coming from the long end, this contributed to their underperformance.

For example, if I own a Treasury bond, something I should care about is my exposure to interest rate risk because it determines how my bond performs.

Instead of the weights of different types of bonds, investors can hone in on exposure to factors that drive portfolio performance, such as interest rate risk, credit risk, and others.

For an ETF investor with exposure to 10 - year and longer - dated debt through funds such as the iShares 7 - 10 Year Treasury Bond ETF (IEF A-51) and the iShares 20 + Year Treasury Bond ETF (TLT A-85), this period of quiet in the fed funds rate looked like this for their portfolios:

During bear markets beginning in 1980, 2000, and 2007 — the ones in which bond exposure was most helpful — the rate of inflation declined.

Uncertainty over the direction the Federal Reserve might take on interest rates is also influencing investors to add to their short - term municipal bond exposure.

Investors can indeed establish interest rates exposure via multiple instruments, such as interest rate swap, Treasury futures, or nominal (cash) Treasury notes and bonds.

Citywire AA - rated manager Steven O'Hanlon has financial bonds to nearly one - quarter of his total exposure in order to capitalise on de-leveraging in the sector.

-- Citywire AA - rated manager Steven O'Hanlon has financial bonds to nearly one - quarter of his total exposure in order to capitalise on deleveraging in the sector.

Not so popular last month was the iShares 20 + Year Treasury Bond ETF (TLT), which led outflows with net redemptions of $ 1.34 billion, as investors trim exposure to long - dated bonds ahead of what could be another rate hike before the year is over.

I've previously outlined that high yield credit risk is typically less ideal than simply gaining credit exposure through stocks and rate exposure through bonds.

«A typical investor who is investing in a fund such as the iShares Core U.S. Aggregate Bond ETF (AGG A-98) may want to hold on to that investment, because even in a rising - rate environment, they are going to get the diversification benefits of that exposure,» Tucker said.

To many, fixed income is a diversifier to equity exposure, and a lot of that diversification benefit comes from the interest - rate risk that bonds have.

IGIH provides exposure investment - grade, US - dollar - denominated corporate bonds while minimizing interest - rate risk by shorting U.S. Treasurys that match in terms of duration.

An additional issue of outdoor enclosures can also be the aptly - named greenhouse effect, a consequence of not using bonded panels, whereby the air trapped between the display panel and overlay will under sun exposure heat at a much faster rate than usual.

In fact, the total return for core bond portfolios is governed predominately by exposures to two macro-economic risk factors: interest rate risk and credit risk.

Traditional bond portfolios have significant exposure to the risk of rising interest rates.

Bond markets are largely driven by exposures to two macroeconomic risk factors: interest rate risk and credit risk.

Structured products are investment platforms that give exposure to equity markets, interest rates, bonds, currency, commodity and derivatives to give the upside in returns while protecting your downside.

This fund is most appropriate for investors who are looking for exposure to U.S. TIPS but also do not mind having inflation - linked bonds issued by emerging market countries, which offer higher rates of return when compared to ETFs investing only in U.S. TIPS.

Duration measures bonds» direct exposure to interest rates.

Interest - rate risk also guided corporate - debt exposures, with investors allocating a record US$ 1.3 billion to the iShares Floating Rate Bond rate risk also guided corporate - debt exposures, with investors allocating a record US$ 1.3 billion to the iShares Floating Rate Bond Rate Bond ETF.

High - yield bonds and bank - loan exposure may be viable portfolio options for the income - seeking investor during periods of rising rates.

Coupon type can also provide differing exposure, as the S&P U.S. Variable Rate Preferred Stock Index (TR) returned twice the amount of the S&P 500 Bond Index, at 11.02 % YTD, as of Dec. 18, 2017.

See how the maturity of a bond can impact its exposure to interest rate risk.

A bond hedge can decrease your exposure to interest rate changes by moving counter to bond prices.

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.

If you're interested in raising your exposure to corporate bonds, visit www.moneysense.ca and look up our 2009 Honor Roll of top - rated bond funds.

By buying a short term bond, you significantly reduce your exposure to interest rate moves, but your credit risk (the risk that the issuer may default on its payments) is still there.

«He may want to look at obtaining some exposure to corporate bonds to soften the impact of future increases in interest rates on the value of his fixed income portfolio.»

If interest rates continue to fall, we have exposure to longer term maturity bonds with a higher yield, and we may also be able to generate some capital gains as well.

Instead, I believe it's prudent to extend allocations in other bond sectors and exposures that offer similar interest - rate sensitivity to Treasuries, but with more compelling investment cases.

It changes the conversation from «I have this much government bonds and this much corporate bonds» to «I have this much exposure to changes in interest rates, and this much exposure to credit markets».

Ultimately, a bond ETF's performance will be dictated by the mix of its exposure to interest rates, credit spreads, currencies, credit quality and slices of global bond markets.

There are a couple other intermediate - term bond funds that have recently shortened their interest rate exposures enough to be considered short - term, but since that's a purely tactical move, we excluded them.

Advances in bond indexing are starting to arrive with screens for credit quality relative to yield; rate and currency hedging; volatility management; and more controlled exposure to interest rates and credit spreads.

Instead of the weights of different types of bonds, investors can hone in on exposure to factors that drive portfolio performance, such as interest rate risk, credit risk, and others.

We like inflation - protected Treasuries (TIPS) instead of nominal bonds, favor shortening interest rate exposure and favor more corporate credit.

Bond investments in which the fund invests (or has exposure to) are subject to interest - rate risk and credit risk.

The fund also seeks exposure to bonds rated CCC or below.

A locally denominated bond fund with exposure to emerging market currencies and interest rates.

By combining domestic bank loans, international bank loans, and high - yield bonds, the Fund provides exposure to investments that are historically less affected by rising rates.

In addition, we have allocated fixed income exposure to inflation - protected U.S. government bonds that will help diversify risk in a rising rate environment driven primarily by higher inflation.