Corporate bonds are considered to be
riskier than government bonds because the investment grade rating of corporate bonds varies depending on the debt issuance and revenue of the company.
Corporate bonds are far
riskier than government bonds, and the risk on corporate bonds, varies widely.
Since corporate bonds are
riskier than government bonds, these funds are not equivalent.
Not exact matches
Investment - grade corporates pay about two percentage points more
than short - term
government bonds, and they're less
risky than they used to be.
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.
Similarly important are the returns that
bond investors are willing to accept in financing
governments, which is generally seen as a less
risky proposition
than loaning money to commerce.
I don't want to mislead in this article because the investments I will be discussing are a bit
riskier than FDIC insured certificates of deposit or
government bonds.
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).
However, MBS are
riskier than government - backed
bonds.
That makes them no
riskier than Government of Canada
bonds of the same maturity, even though they usually have higher yields.
It's reasonable these days to expect safe
government bonds to return less
than 3 %, so there's a gap that needs to be made up by investing in
riskier assets with less reliable returns.
Bonds: Government bonds, corporate bonds and municipal bonds offer greater returns than cash but are more r
Bonds:
Government bonds, corporate bonds and municipal bonds offer greater returns than cash but are more r
bonds, corporate
bonds and municipal bonds offer greater returns than cash but are more r
bonds and municipal
bonds offer greater returns than cash but are more r
bonds offer greater returns
than cash but are more
risky.
For example, if you're buying a
bond from a company, that might be more
risky than buying one from the Federal
Government.
Riskier investments such as shares and junk
bonds are normally expected to deliver higher returns
than safer ones like
government bonds.
Because
government entities have the power to raise taxes and fees as needed to pay the interest, municipal
bonds are generally considered to be less
risky than corporate
bonds, so they typically offer lower yields.