Sentences with phrase «risk than government bonds»

Corporate bonds tend to carry a higher level of risk than government bonds, but they generally are associated with higher potential yields.

Since high - yield bonds have far more credit risk than government bonds of the same maturity, investors should naturally expect higher returns.

Not exact matches

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

In essence, if correct, this means there is less price risk in government debt securities than corporate fixed income issues, and therefore the extra 10 % should largely be made up of government bonds rather than corporates and preferred shares.

While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

The yields and risks are generally higher than those offered by government and most municipal bonds, and the income is subject to state and federal taxes.

U.S. stocks plunged on Tuesday, with the Dow Jones Industrial Average sinking more than 400 points as rising government bond yields drove investors into risk - off mode...

Instead of keeping 20 % in cash, thereby reducing expected risk to 12 %, the investor could move into 10y government bonds with a higher return than cash and even a little bit of negative correlation with equities.

Municipalities have more risk than U.S. government bonds of similar duration and credit quality.

Namely, bond coupon payments are determined by market interest rates, the type of issuing entity (government bonds pay lower coupons than corporate bonds because of lower default risk), the creditworthiness of the issuing entity (AAA companies pay lower coupons than CCC companies), and the maturity of the bond, which we will talk about next.

Debt funds invest in fixed income instruments such as Corporate and Government bonds, are lower - risk investment options for those looking for better interest rates than their bank's savings accounts / fixed deposits.

If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as stocks) into a lower risk asset class (such as government bonds or money market funds).

If one has bought a bond with few years left for maturity and if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to...

For example, bonds issued by the federal government carry far less credit risk than those issued by a corporation with a troubled balanced sheet.

What's more, GICs pay higher yields than government bonds: today you can build a five - year ladder with an average yield over 2 %, with no credit risk and no chance of a capital loss.

If an investor is looking to precious metals and commodities as a non-correlated asset class, U.S. Government Bonds have a much better track record with much less risk than precious metals and commodities.

Corporate bonds are far riskier than government bonds, and the risk on corporate bonds, varies widely.

Corporate bonds are popular income investing assets because they typically pay higher yields than government securities, although they also carry correspondingly higher risk.

Since the government is unlikely to default on a loan, gilts are considered to be lower risk than corporate bonds.

Bond funds or bonds are conservative, low risk, and highly liquid investments that are ideal for investors who wish to enjoy government - backed funds and higher returns than savings and money market funds.

Fed officials also believe that some better - than - expected economic data recently has encouraged investors to believe there is less need for the safe - haven of government bonds and more risk of inflation.

I remember reading long ago that if you want to add bonds to your portfolio, to buy them directly rather than in a bond mutual fund because a bond fund holds more risk, especially when it comes to government bonds.

However, GICs have higher yields than government bonds of the same maturity, with no additional risk.

The likelihood of your $ 500 investment being completely evaporated is very slim, but if you lose $ 300 here, the thousands invested in the S&P 500, low risk stocks, government bonds, and mutual funds will more than recuperate the losses.

But, short of the government defaulting, there's far less risk in bonds than there are in stocks.

In 2000, I wrote a short paper entitled «Death of the Risk Premium,» with Ron Ryan, which was received with widespread derision, but ultimately proved correct: plain old 10 - year government bonds have produced higher returns than stocks since then, by a cumulative margin of over 30 %, despite the durable bull market since 2002.

1T - Bills are guaranteed as to the timely payment of principal and interest by the U.S. Government and generally have lower risk - and - return than bonds and equity.

Depending on your comfort level, the idea of choosing fixed income other than government bonds / GICs / cash has some appeal (especially with historically low gov» t bond yields) but just be sure you understand the products you are buying, the inherent risks, the embedded options, the liquidity, the seniority of the debt.

Right now, yields for REIT's are about 3 % higher than government bond yields, meaning REIT investors are being well compensated for taking on additional risk.

SWENSEN: If you looked at — if you looked at Yale's bond portfolio 20 years ago, probably a market portfolio, market duration, it was all government bonds because I believed that there are better ways for Yale to take equity risk than to own corporate bonds.

Municipal bonds are considered safer, low - risk investments than corporate bonds, since a municipal government is much less likely to go bankrupt than a corporation.

If government bonds carried risks similar to stocks, then there would likely be more reasons to hold bonds as funds rather than individually.

Data Source: Thomson Reuters, 1/18; * T - Bills are guaranteed as to the timely payment of principal and interest by the U.S. Government and generally have lower risk - and - return than bonds and equity.

Corporate yields are an average of two percentage points higher than government bonds because there's a higher risk of default.

Corporate bonds usually offer higher yields than government bonds or certificates of deposit, reflecting higher risk.

Corporate debt securities (bonds) tend to have higher credit risk generally than U.S. government debt securities.

But if government bonds rose to four per cent, prospective buyers who take on more risk and workload than a bond buyer would demand a higher ROI or cap rate.