Sentences with phrase «so higher yielding bonds»

Risk and reward is always related, so higher yielding bonds always carry more risk of default.

Not exact matches

The bonds of iHeartMedia have long been in the basket of «distressed debt,» meaning their prices have fallen so far to where their yields are at least 10 percentage points higher than equivalent Treasury yields.

So far, though, no one is reporting any unusual outflows in the bond market, but Hamilton - Keen cautions investors against chasing high - yield products.

So far, 2018 has not been an easy year for high - yield bond ETFs.

To receive the full benefit of a bond ladder, one needs not only to stay the course for a number of years (so that lower yield and higher yield purchases benefit from cost averaging), but also with a relatively stable amount of capital.

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.

Bloomberg reported Thursday that after Draghi's bold words about protecting the euro last week, markets expect him to deliver some sort of drastic action to do so and to relieve pressure on bond yields, which have climbed steadily higher for Spain and Italy.

High - yield bonds are in the eighth year of an investment cycle that has seen assets under management grow threefold, to $ 300 billion, so interest among investors remains hHigh - yield bonds are in the eighth year of an investment cycle that has seen assets under management grow threefold, to $ 300 billion, so interest among investors remains highhigh.

Real bond returns have been high over the past 30 years or so because nominal starting yields were high and inflation has fallen.

So while these «fallen angel» bonds have the potential to be intrinsically higher quality than debt originally issued at the junk or high - yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.

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.

The first thing they watch when doing so is how high or low interest rates on treasury bonds with different maturities are, which is also referred to as the yield curve.

While much of the outflows so far have been a result of investors switching out of high yield into safer money - market and government bond funds, Gutteridge believes we have seen the bulk of the selling.

High yield bonds have only been around since the 1980s, so they've never really experienced a sustained rising rate environment.

Yet by setting yields so low and bond prices so high, markets are sending a clear signal that they want more, not less, government debt.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

So assuming earnings growth is not affected, slower inflation and lower bond yields might support higher P / E levels.

Putting aside the performance of bonds during the bear market beginning in 1980 (both because the starting yields on Treasuries were so high but also because the bear market was relatively mild as the decline began from relatively low levels of valuation), what's interesting about the above chart is how dependably bonds protected a portfolio during equity bear markets.

With yields having been so low for so long, bonds are suddenly providing some competition with equities at these higher yields levels.

All that is as it should be, so long as investors understand the role that high - yield bonds play in a portfolio.

The conditions have fueled a rally in Portugal's sovereign bonds so far this year, although they remain the second - highest yielding bonds in the eurozone, behind those of Greece.

But dividend stocks may come under pressure from higher bond yields, so we prefer companies that can sustainably grow dividends.

But in the last few episodes of sharp stock market drops, bonds went up (US government bonds are a safe haven asset and appreciate in crisis periods) so the only thing better than 3 months worth of expenses in a money market fund is having 3 + x months worth of expenses in the bond portfolio due to higher bond yields and negative correlation between bonds and stocks.

A tough week for the Gold market so far as the dollar has rebounded and US Bond yields have jumped higher ahead of the FOMC minutes.

These risks increase with high - yield, or so - called «junk,» bonds.

So while low and negative interest rates across the globe has inspired flows into stocks, emerging market bonds and corporate credit in search of higher yields, keep in mind the high correlations of these assets to oil prices and the advantages of holding actual diversifiers in your portfolio to smooth the ride.

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

High yield municipal bond yields have risen by 30bps in the same time period as the S&P Municipal Bond High Yield Index is down 1.76 % so far in yield municipal bond yields have risen by 30bps in the same time period as the S&P Municipal Bond High Yield Index is down 1.76 % so far in Jbond yields have risen by 30bps in the same time period as the S&P Municipal Bond High Yield Index is down 1.76 % so far in JBond High Yield Index is down 1.76 % so far in Yield Index is down 1.76 % so far in June.

But it's essential to contain ones exuberance as regional risk can easily entangle in higher US yields, but so far the push in treasury yields has not been intense enough to cause a substantial adverse shift in risk sentiment, but caution prevails as the move higher in US Bond yields could be far from over.

They also have sensitivity to interest rates, so as interest rates rise, the value of a high yield bond can decline, and vice versa.

These stimulus measures have driven bond yields in Europe and Japan lower and bond prices there higher, and could continue to do so (source: Bloomberg).

They also have sensitivity to interest rates, so as interest rates rise, the value of a high yield bond can decline, and vice versa.

As time passed, the number of funds increased as they began to specialize in certain types of investments: foreign - country bonds, high - tech stocks, high - yield (junk) bonds, and so forth.

Once we own the bond, we've locked in the high yield, so we hope for high prices (lower interest rates).

Because bonds with longer maturities have a greater level of risk due to changes in interest rates, they generally offer higher yields so they're more attractive to potential buyers.

Posted fixed mortgage rates have always been above government bond yields so paying off your house will offer a higher return over the long - term.

One idea I have is that rather than staying in TIPS and knowing that my account balance «will decline» while I wait for a PE / 10 to decrease to 14 or so (which might not happen in my lifetime) it might be better to look at getting yield from Preferred Stocks, REITs, MLP's or maybe even High Yield Byield from Preferred Stocks, REITs, MLP's or maybe even High Yield BYield Bonds.

With Treasury yields so low, most high quality bonds are not attractive now.

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

So, the implication is watch for a sustained rise in in high - yield bond yields.

In a perverse sense, it makes sense that someone will write a book pushing high quality bonds when the yields are so low.

So I don't see direct lending by the Fed, or buying high yield bonds, or offering protection on baskets of bonds as wise moves.

But high valuations and a strong rally in 2016 could see some profit taking in the high yield sector, so we generally prefer investment grade bonds.

In our opinion, the so - called «spread sectors,» from high - yield bonds to non-agency mortgages and emerging - market debt (EMD), currently offer attractive levels of credit, prepayment, and liquidity risks, particularly for investors who know how to analyze these risks.

Are preferred yields always so much higher than general bond rates?

The S&P U.S. Issued High Yield Corporate Bond Index has returned 0.08 % so far for May after having returned only 0.67 % for the month of April.

So I still keep about 50 % of my fixed income (bonds, CDs, cash) in bond funds, and a good chunk in high - yield savings accounts and reward checking accounts.

That means there's lots of supply of longer - term muni bonds, so issuers have to offer higher yields to sell them.

The junk or high yield bond markets in the U.S. have seen diverse returns so far in 2015.

It is invested primarily in the credit market, not so much in government bonds because government bond yields are so low, but we're looking for absolute returns even if interest rates go up, so some of the portfolio, a significant piece of it actually, is floating rate, so if interest rates go up, you just get higher cash flows, which will support higher returns, and the rest of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.