We see investment grade debt as attractive in the tradeoff between yield and risk.
Not exact matches
We
see opportunities in dividend growth stocks, EM equities and
debt as well as in
investment -
grade credit.
Of course we would like to
see AXL pay down its
debt as quickly as possible, but cutting the company's
debt in half would likely push AXL to be an
investment grade credit and this appears achievable within roughly 3 years.
In recent months, the yield on US corporate bonds, especially
investment -
grade securities, is a little more than 100 basis points compared to the yield on government
debt, dropping within striking distance of the lows
seen post the 2008 financial crisis.
We
see investment -
grade corporate
debt as attractive in a world hungry for yield.
The
investment grade rating is reserved for those
debts that have a high likelihood of being repaid and are relatively safe for investors, though safety can not be absolutely guaranteed [
see also A Brief History of Bond Investing].