Sentences with phrase «than investment grade bonds»
High yield, lower rated bonds involve a greater degree of risk than investment grade bonds in return for higher yield potential.
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Consequently, high - yield bonds are rated lower than investment grade bonds.
As these bonds are riskier than investment grade bonds, investors expect to earn a higher yield.
I'm not generally a fan of insurance companies investing in anything more dangerous than investment grade bonds.
High yield bonds generally have greater price swings and higher default risks than investment grade bonds.
All else equal, unless it possesses some sort of major offsetting advantage that makes the risk of non-payment low, a company with a low - interest coverage ratio will almost assuredly have bad bond ratings, increasing the cost of capital; e.g., its bonds will be classified as junk bonds rather than investment grade bonds.
Securities rated below investment grade, sometimes called junk bonds, involve a greater degree of risk than investment grade bonds in return for higher yield potential.
High - yield, high risk bonds, which are rated below investment grade, can involve a substantial risk of loss because they have a greater risk of issuer default and are subject to greater price volatility than investment grade bonds and may be illiquid.
High yield / non-investment grade bonds involve greater price volatility and risk of default than investment grade bonds.
The weighted average yield (YTW) of bonds in the index ended at 7.26 % or 419bps higher than investment grade bonds.
BUSINESS CREDIT: Corporate bonds received the largest allocation; the majority of that went to high yield and bank loans rather than investment grade bonds
High - yield bonds, also referred to as «junk bonds,» offer higher rates of return, and therefore carry a higher rate of risk, than investment grade bonds.