Sentences with phrase «ratings high yield bonds»

Lower credit ratings High Yield Bonds have lower ratings due to the potentially greater risk involved.

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.

Meanwhile, fixed rate high yield bonds tracked in Read more -LSB-...]

The S&P / LSTA U.S. Leveraged Loan 100 Index has returned 1.76 % year to date under performing vs. fixed rate high yield bonds.

Meanwhile, fixed rate high yield bonds tracked in the S&P U.S. Issued High Yield Corporate Bond Index, which have a longer duration than floating rate debt, have seen a negative 1.51 % return in June so far.

Not exact matches

LONDON, May 1 (Reuters)- The dollar broke into positive territory for the year and bond yields were creeping higher again on Tuesday, as the recent rise in oil prices fuelled bets that the U.S. Federal Reserve will flag more interest rate hikes this week.

If interest rates rise and push that risk - free rate of return higher, then those dividend stocks and high - yield bonds are vulnerable.

NEW YORK, May 1 - The dollar broke into positive territory for the year and U.S. bond yields inched higher again on Tuesday as the recent rise in oil prices fueled expectations the Federal Reserve could flag more interest rate hikes at its policy meeting this week.

That relationship has played out this year — as interest rates have risen since January, the HYG high yield corporate bond ETF has come under pressure.

(Bond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratBond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratbond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest rates.)

Typically, higher interest rates make existing bonds less attractive to buyers, since they can get new notes at loftier yields.

Also, as bond rates rise, some of the money that migrated over from the bond market in search of higher yields will return to the safety of fixed income.

While investors will have to find stocks with higher yields, pay more for them and take on more risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal for retirement income.

Among individual banking stocks, Bankia, Credit Agricole, ING and Banco Santander are «buy» - rated names, according to Deutsche Bank, as they all have a high positive correlation to U.S. bond yields.

The Fed's low interest rate policy has driven more and more money into bond funds as investors search for higher yields.

Bond yields rose to the highs of the day as Federal Reserve Chair Jerome Powell laid out a case where the Fed could raise rates more than it has forecast.

Back then, bond yields were much, much higher, as were savings rates.

At some point, investors who are conflating high - yielding consumer staples stocks with bonds or who are taking interest rate risk in long - dated Treasurys will see drawdowns as well.

However, rates have retreated from over 8 percent in the last several weeks, and the credit risk of high - yield bonds can offer some diversification from the interest - rate risk of a portfolio of Treasury bonds.

Exchange - traded funds that track high - yield bond indexes have been the beneficiaries of a cash surge in recent weeks as market participants figure the central bank probably won't raise rates in 2015, and it could be well into 2016 before anything happens.

In a presentation earlier in September, Gundlach said that interest rates around the world had bottomed and he expected both rates and bond yields to move higher.

«According to the higher interest rates and bond yields projected by consensus, the market has started to wonder when the BOE would start raising rates again.

Bond yields snapped higher, adding to their already steep gains, and federal funds derivatives showed market expectations are moving closer to pricing in a full three interest rate hikes by December.

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.

Trump's plans to increase fiscal spending has boosted bond yields — a change that would support higher revenue for banks currently languishing in a low - interest rate environment.

They have also increased the cost of new fixed - rate mortgages as yields on the bond market have moved higher.

Once again, with the economy improving and the Fed looking closer to raising interest rates, high yields and lower bond prices seem to be the obvious bet.

Bond prices fell, sending the yield on the U.S. 10 - year Treasury note to its highest level in four years, following newly released minutes from the U.S. Federal suggesting bullish sentiment among policy - makers and signalling more interest rate hikes ahead.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

The assumed discount rate utilized is based on a broad sample of Moody's high quality corporate bond yields as of the measurement date.

The two largest funds in the segment — the $ 15 billion iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest raHigh Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest raHigh Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest rahigh valuations and rising interest rates.

It's the iShares Interest Rate Hedged High Yield Bond ETF (HYGH).

The $ 1.2 trillion market for U.S. junk bonds yields about 6.6 percent, double what's offered by higher - rated company debt, according to Bank of America Merrill Lynch index data.

In a zero - interest rate world (Figure 7), these provide yields that are much higher than those found in more conventional investments like U.S. Treasury bonds or money market accounts.

Higher inflation will put additional pressure on bond yields, and could also push the Fed to raise rates more quickly.

As rates creep higher overseas in response to the gradual removal of policy accommodation in Europe and Asia, foreign buyers will have less incentive to hunt for yield in U.S. bonds.

But keep in mind: More interest rate sensitive bonds generally have higher yields, so moving to a shorter duration investment could result in less income.

When rates rise, bonds drop in value because fixed income buyers prefer investing in new bonds with higher yields.

Cumulative inflows into the iShares Short Maturity Bond ETF (NEAR), Floating Rate Bond ETF, SPDR Bloomberg Barclays Short Term High Yield Bond ETF, PowerShares Senior Loan Portfolio, and the Vanguard Short - Term Corporate Bond ETF topped $ 400 million in total for the first session of the week, the highest since the inception date of the most recent member of this product group.

A strong employment report sent bond yields even higher, and mortgage rates loosely follow the yield of the 10 - year Treasury.

Consumer confidence and high yield bond spreads corroborate the unemployment rate in suggesting that we are in the mature stages of the current business cycle.

High - yield bond funds have seen mass outflows in recent weeks as investors begin to take the threat of higher interest rates and a winding down of monetary stimulus more seriously.

The potential for a lower corporate tax rate may also lead to interesting opportunities in BB - rated high - yield bonds.

The Bloomberg Barclays U.S. Corporate High Yield Bond Index covers the universe of fixed - rate, non-investment-grade debt.

With rates at historic lows, many investors have used high - dividend stocks, rather than low - yielding bonds, in pursuit of income.

Stocks slide on rising rates and yield curve inversion concerns, but a recession doesn't look likely, judging by other economic data and the high - yield bond...

But cash isn't such a bad thing in a rising rate environment as the yield pick up rather quickly on money market accounts or you can roll some of that over into higher yielding short - term bonds.

In all likelihood, rates will eventually go higher, and US bond funds could yield negative returns.

Typically, a higher - rate environment will increase spreads for banks / insurers, but you're absolutely right that the 10 - year yield could stay flat, especially when the yields for government bonds of other countries are so low.

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