Many forces have collided to create this somewhat unusual relationship between commodities, emerging market debt,
speculative grade bonds and stocks.
Many forces have collided to create this somewhat unusual relationship between commodities, emerging market debt,
speculative grade bonds and stocks.
Not exact matches
Speculators and distressed investors making a living off high - risk, high - reward opportunities could turn to non-investment
grade bonds for
speculative opportunities.
Bonds rated below investment
grade may have
speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market.
Non-investment
grade bonds are considered to be higher risk or
speculative investments.
Interest - rate risk is generally greater for longer - term
bonds, and credit risk is generally greater for below - investment -
grade bonds, which may be considered
speculative.
Investing in high yield fixed income securities, otherwise known as «junk
bonds», is considered
speculative and involves greater risk of loss of principal and interest than investing in investment
grade fixed income securities.
High yield
bonds (
bonds rated below investment
grade) may have
speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.
High Yield
bonds involved greater risk of default or downgrade and are more volatile than investment
grade securities, due to the
speculative nature of their investments.
The cost of protecting
speculative -
grade bonds against default in the credit - default swap market climbed to its highest level since July 6.
The par amount outstanding of investment -
grade corporate debt, as measured by the S&P U.S. Investment
Grade Corporate
Bond Index, has increased over USD 4 trillion since September 2007, while the amount of
speculative -
grade outstanding, as measured by the S&P U.S. High Yield Corporate
Bond Index, has increased by USD 800 billion.
Bond choices range from U.S. Treasury securities, which are backed by the full faith and credit of the U.S. government and are free from credit risk, to
bonds that are below investment
grade and considered
speculative.
A
speculative -
grade bond has a rating of lower than Baa, an investment -
grade bond has a rating of Baa or higher.
High yield
bonds are more volatile than investment
grade securities, and they involve a greater risk of loss (including loss of principal) from missed payments, defaults or downgrades because of their
speculative nature.
Similar to high - yield
bonds,
speculative -
grade senior loans, as measured by the S&P / LSTA U.S. Leveraged Loan 100 Index, have returned -0.36 % MTD and 2.27 % YTD.
The higher default risk is the chief reason that
speculative -
grade bond issuers have to pay higher interest rates that go hand - in - hand with the so - called credit migration risk (or credit rating risk), which is part of the credit risk by extension.
For instance, a rising price ratio for iShares 7 - 10 Year Treasury (IEF): iShares iBoxx High Yield Corporate
Bond (HYG) is indicative of a preference for risk - off investment
grade credit over
speculative higher yielding credit.
High yield
bonds are more volatile than investment
grade securities, and they involve a greater risks of loss (including loss of principal) from missed payments, defaults or downgrades because of their
speculative nature.
Learn about the top five mutual funds that invest in corporate
bonds that have investment
grade quality and
speculative credit ratings.
Investments in high - yield
bonds offer different rewards and risks than investing in investment -
grade securities, including higher volatility, greater credit risk, and the more
speculative nature of the issuer.
In comparison, according to Standard & Poor's Ratings Services Global Fixed Income Research estimates, the 2014 U.S.
speculative -
grade corporate
bond default rate was 1.52 %.
A junk
bond or high - yield
bond is a
bond rated at «
speculative»
grade or at «less than investment
grade,» likely BB or lower.
High yield, as measured by the S&P U.S. High Yield Corporate
Bond Index and the S&P / LSTA U.S. Leveraged Loan 100 Index, which represents
speculative -
grade senior secured bank loans, was less driven by Europe's news.
The following report includes a company - by - company comparison of Canadian high yield
bonds» covenant strength based on Moody's Covenant Quality Assessments: The Canadian High Yield Bond Market: Frequently Asked Questions Canadian Corporations: Canadian High - Yield Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
bonds» covenant strength based on Moody's Covenant Quality Assessments: The Canadian High Yield
Bond Market: Frequently Asked Questions Canadian Corporations: Canadian High - Yield
Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield
Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
Bonds Offer More Investor Protection Than US
Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
Bonds The following report summarizes how Moody's rates and analyzes nonfinancial
speculative -
grade issuers in the Canadian market: High Yield Insights for Canadian Investors
High Yield Securities Risk (Municipal
Bond Fund only): Below investment -
grade securities, sometimes called «junk
bonds,» are considered
speculative.
Chalk this one up to a collective bout of angst that looks quite different from the 3.2 percent drop in
speculative -
grade bonds in May and June of last year.
Investing in high yield fixed income securities, otherwise known as «junk
bonds» is considered
speculative and involves greater risk of loss of principal and interest than investing in investment
grade fixed income securities.
Interest - rate risk is generally greater for longer - term
bonds, and credit risk is generally greater for below - investment -
grade bonds, which may be considered
speculative.