Sentences with phrase «riskier high yield bonds»

Even riskier high yield bonds have held up relatively well.

Not exact matches

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.

Appetite for riskier assets such as stocks and high - yield bonds has been suppressed by a number of factors that have come up around the same time, but the headwinds may be transitory, according to the New York - based investment bank.

A typical measure of credit conditions are «spreads» — the difference between the yield of 10 - year U.S. Treasury bonds and that of riskier bonds, such as high yield.

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

However, these higher yielding bonds are often the most risky, resulting in a lower risk - adjusted return than the broad market.

Yields on high - yield corporate bonds narrowed (centre panel) and record low government bond yields pushed up valuations of risky assets (right - hand pYields on high - yield corporate bonds narrowed (centre panel) and record low government bond yields pushed up valuations of risky assets (right - hand pyields pushed up valuations of risky assets (right - hand panel).

Borrowers issue high - yield or «junk» bonds because they are considered too risky to raise funds through established channels.

The risk taker, for example, tends to make risky investments such as real estate investment trusts, options, currency trading, and high yield bonds.

Also, stocks are volatile and generally the riskiest assets, with the possible exception of credit default swaps, high - yield «junk» bonds, and other similar assets.

Central bank intervention in global bond markets has «crowded out» many traditional fixed income investors, driving them to seek yield and income from non-traditional and riskier asset classes such as high yield, emerging markets debt, leveraged loans and private credit.

High Yield bond portfolios concentrate on lower - quality bonds, which are riskier than those of higher - quality companies.

This is a lot higher than the average savings account or riskier corporate bond yields.

They are riskier than bonds issued by higher rated investment - grade companies, so they often offer higher yields.

As risky assets like equities and high yield bonds have come under pressure, gold has rallied roughly 4 % (source: Bloomberg).

Although recently rising prices for stocks, high - yield bonds, commodities and other riskier assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.

Sure, you can move it into riskier investments like bonds or even high yield bonds to try to juice your returns but a move -LSB-...]

High - yield debt in both the US and international bond ETFs also got a boost after yield - seeking investors moved longer on the yield curve and into riskier debt securities to achieve better returns on their investment capital.

Income - seeking investors may need to consider exploring riskier areas of the bond market like high yield and EM bonds.

In the U.S. those further benefits crucially flowed through the wealth effect channel: substitution of lower risk assets such as bank deposits and Treasuries for high yield bonds and equities led to price increases in those risky assets.

This has been making it increasingly difficult for private equity firms and the investment banks that structure their deals to find people willing to invest in their risky, high - yield bonds.

C and D level bonds, which are also known as «junk bonds», are some of the riskiest bonds an investor can own but also have some of the highest yields and best potential returns.

Bond fund fees are hard to justify currently unless you're investing in riskier, higher yielding bonds.

A bond issuer such as the UK or US government is seen as very safe, however a heavily - indebted company would be far riskier - investors demand a higher yield to invest in this sort of company.

High - yield bond funds tend to invest in riskier bonds.

The proximate cause of this sell - off is a reappraisal of risk in the credit markets, starting first at subprime but now having spread to the riskier parts of corporate credit, namely high - yield bonds and loans to finance buy - outs.

They are riskier than bonds issued by higher rated investment - grade companies, so they often offer higher yields.

In this part of my portfolio I use more risky fixed - income securities, as there is a defensive strategy to address the higher volatility of the high - yield and other more risky bond funds.

Some purchase highly rated bonds that may pay the fund a lower interest rate but are considered less risky, while others focus on lower - quality, higher - yield bonds.

It uses leverage and invests in high - yield bonds it considers attractive, but also shorts those it considers risky and unattractive.

High Yield bond funds can be very risky as shown in the below pictures.

For that matter, your bond holdings could also have been more risky than the broad bond market, which could be the case if you invested heavily in high - yield, or junk, bonds, which lost more than 25 %.

Consider the increasingly risky world of high yield bonds.

Similarly, some high - yield bond funds may also be too risky if they invest in low - rated or junk bonds to generate higher returns.

Investors seek more risk in equities as bond yields get low... And higher equity valuations make bond investors believe it's just as safe as it was before when both debt and equity valuations were lower (and objectively less risky).

As these bonds are riskier than investment grade bonds, investors expect to earn a higher yield.

The longer - duration bonds tend to become risky, so the expected yields are higher.

On the downside, high - yield bonds are riskier and some of the companies that issue them are that much more likely to go to zero than a less risky issuer.

High - yield bond funds concentrate on lower - quality bonds, which may offer the higher yields but are significantly riskier than...

The result: higher prices for riskier assets like equities and tighter spreads for high yield and emerging market (EM) bonds.

Certain bond classes are risky enough (with commiserate yields) to be useful in diversifying a higher - risk / higher - return portfolio with a long time horizon.

That makes them no riskier than Government of Canada bonds of the same maturity, even though they usually have higher yields.

To seek a yield of 4 % or 5 %, investors would have to consider the riskier parts of the market, like long - term corporate bonds, high yield and emerging markets.

But with about 36 percent in «stable market» bonds, the mix also includes 5 percent in high - yield bonds and 10 percent in emerging market bonds, he said, which may be riskier than some investors want with college four years away.

Sure, you can move it into riskier investments like bonds or even high yield bonds to try to juice your returns but a move like that can carry a great deal of risk.

Key credit spreads were widening, such as those between intermediate - term treasury bonds and riskier corporate bonds in funds like iShares Baa - Ba Rated Corporate Bond ETF (BATS: QLTB) or SPDR High Yield Bond (JNK).

MFIP can take advantage of these different kinds of bonds, but the portfolio also includes important risk controls, such as limiting exposure to riskier bond funds like high yields and emerging market bonds.

High yield bonds are too risky to serve this purpose.

High yield bonds are riskier bonds with lower credit ratings and higher yields than their safer counterparts.

High yield bonds are risky enough that when nominal yields get low enough, it is probably time to start reducing exposure.