Sentences with phrase «than government bonds»

Also, credit investments, like investment grade and high yield corporate bonds, tend to have higher yields than government bonds.

Corporate yields are an average of two percentage points higher than government bonds because there's a higher risk of default.

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.

I use 10 - year swap rates here because they are more comparable than government bond rates.

Since high - yield bonds have far more credit risk than government bonds of the same maturity, investors should naturally expect higher returns.

Corporate bonds tend to carry a higher level of risk than government bonds, but they generally are associated with higher potential yields.

However, corporate bonds have a comparatively shorter maturity period that government bonds and pays more interest than government bonds as well.

Another tactic for higher yield in a rising rate market is to select corporate rather than government bonds, while keeping in mind the added risk of these holdings.

Where else, other than government bonds, are people allowed to have investments grow tax free?

Corporate bonds pay a higher interest rates (or «coupon») so these bonds are repaid quicker than government bonds, which pay a lower interest rate.

Also, credit investments, like investment grade and high yield corporate bonds, tend to have higher yields than government bonds.

Corporate bonds are far riskier than government bonds, and the risk on corporate bonds, varies widely.

Dividend stocks currently yield more than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.

Dividend stocks currently yield more than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.

Generally the Deposit Insurance should be better than Government bonds as these are meant for common people and are of less hassle.

That's what you should expect, since GICs usually pay more interest than government bonds.

Scoff all you want at the lowly GIC but for the first time, perhaps ever, it may be a better option for your fixed - income portfolio than government bonds.

The sweet spot these days is probably corporate investment - grade bonds with terms of three to seven years, or GICs, both of which offer higher yields than government bonds without significantly more risk.

There is, however, a price to be paid: When stocks next nosedive, corporate bonds will likely provide less protection than government bonds.

With numerous international regions engulfed in turmoil, investors are looking for safe havens and for investments with the potential to provide better returns than government bonds, he noted.

Wong wants a return potential of about 3 % to 5 % higher than the government bond rate, which puts him into the 5 % to 7 % annual return range.

Corporates are still riskier than government bonds but there's only so much yield you can pick up.

That's in large part because dividend yields have been considerably higher than government bonds in most developed markets including Canada over this time.

Given the risk of rising interest rates, you might reduce your interest - rate risk by favoring shorter - term bonds, but stick with corporate rather than government bonds, so you don't give up too much yield.

Depending on your comfort level, the idea of choosing fixed income other than government bonds / GICs / cash has some appeal (especially with historically low gov» t bond yields) but just be sure you understand the products you are buying, the inherent risks, the embedded options, the liquidity, the seniority of the debt.

However, GICs have higher yields than government bonds of the same maturity, with no additional risk.

That's in large part because dividend yields have been considerably higher than government bonds in most developed markets including Canada over this time.

What's more, GICs pay higher yields than government bonds: today you can build a five - year ladder with an average yield over 2 %, with no credit risk and no chance of a capital loss.

Jeremy Racicot, CFP and co-founder of The Bay West Group, is putting his clients» fixed - income dollars into corporate bonds, or company debt, because they pay more than government bonds.

Since corporate bonds are riskier than government bonds, these funds are not equivalent.

Corporate bonds are riskier than government bonds, but offer higher yields.

Right now, yields for REIT's are about 3 % higher than government bond yields, meaning REIT investors are being well compensated for taking on additional risk.

Mortgage debt was reinstated at much higher rates than government bonds were.

We also recommend many corporate bonds which offer higher yields than government bonds, but also carry a higher element of risk.

They are more risky than government bonds.

Corporate bonds usually offer higher yields than government bonds or certificates of deposit, reflecting higher risk.

Note that the Sears bond has a higher yield throughout the period, reflecting the fact a corporate bond trades at higher yields than a government bond.