Sentences with phrase «than their investment grade»

Equities return the most over time, but their holders have to go through more duress than investment grade fixed income, for example.

While these funds have the potential to provide high income and total returns, they are riskier and more volatile than their investment grade counterparts.

High yield fixed income securities are considered speculative, involve greater risk of default, and tend to be more volatile than investment grade fixed income securities.

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.

These bonds are considered risky investments and tend to pay higher interest rates than Investment grade debt.

The bottom line of Draghi's answers was that the ECB would only buy government bonds rated lower than investment grade if the countries are in a bailout programme and the programme is not in a review period.

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.

Bank loans however, carry sub-investment grade ratings and have significantly more credit risk than investment grade corporate bond floating - rate securities.

The primary attraction for investors is that lower rated borrowers pay a higher rate of interest than investment grade borrowers, so bank loan funds and ETFs typically offer a higher dividend yield.

Such risks mean charter - school debt is typically considered speculative, rather than investment grade...»

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.

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.

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.

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.

High yield, lower rated bonds involve a greater degree of risk than investment grade bonds in return for higher yield potential.

As such, securities rated below investment grade generally entail greater credit, market, issuer and liquidity risk than investment grade securities.

I'm not generally a fan of insurance companies investing in anything more dangerous than investment grade bonds.

A junk bond or high - yield bond is a bond rated at «speculative» grade or at «less than investment grade,» likely BB or lower.

The holdings of emerging market bond funds typically range from relatively low risk BB + bonds (one notch lower than investment grade) to high - risk C issues.

Second, the muni market is more retail - oriented than the investment grade corporate market.

Corporate bonds with low credit ratings are called high - yield bonds, because they have higher yields than investment grade bonds.

That is why «less than investment grade» or «junk bonds» are commonly called the «high yield» sector of the bond market.

Not exact matches

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

Investment - grade corporates pay about two percentage points more than short - term government bonds, and they're less risky than they used to be.

An investment - grade company issue will pay you between 100 and 140 basis points more per year than a government one.

California's bonds are rated lower than those of any other state, but are still investment grade, and investors are still buying.

The fund can purchase securities of any credit quality, including those in default, but it will primarily invest in investment - grade debt, with no more than 20 % of the portfolio invested in junk bonds.

High yield / non-investment-grade bonds involve greater price volatility and risk of default than investment - grade bonds.

The Senate version is more onerous: It would affect a small portion of the investment - grade market, but would have a much greater impact than the House version on the high - yield market.

This under - appreciated asset class yields more than five percent from mostly investment - grade issuers.

For people looking for ways to boost the income of a portfolio, that has often meant casting a wider net than the traditional core holdings of U.S. Treasuries and investment grade corporate bonds.

Investment grade bonds are considered to be lower risk and, therefore, generally pay lower interest rates than non-investment grade bonds, though some are more highly rated than others within the category.

However, below investment grade exposure is limited to no more than 25 % of total assets.

More than 95 percent of NEARX is invested in munis that hold between an A and AAA investment - grade rating as of March 31.

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.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

Typically, the market for high yield bonds is less liquid than the market for investment grade or government bonds.

The average investment - grade (high - yield) bond trades on less than 32 % (36 %) of days over the prior six months — liquidity in corporate bonds was considerably lower than in traditional listed equity markets.

Investment grade bonds had less than 0.2 % probability of a default within a year.1

Investment - grade bonds have historically tended to suffer smaller losses than stocks, and they very rarely post losses over longer time periods.

As part of PowerShares's BulletShares investment - grade suite, BSCM behaves more like a bond than a typical bond fund.

For example, Fidelity will allow you to search both investment grade and junk bonds, show you the number of bonds available at both the bid and ask price, and will even allow you to submit a limit order (although you can not put in a good until cancelled order or one that is more than a small amount away from the current bid / ask).

As part of PowerShares's BulletShares investment - grade suite, BSCL behaves more like a bond than a typical bond fund.

As part of PowerShares's BulletShares investment - grade suite, BSCN behaves more like a bond than a typical bond fund.

The «model» behind our largest investment required nothing more than sixth grade math, and a napkin — not a sophisticated spreadsheet capable of more numbers than I'm capable of counting.»

As part of PowerShares's BulletShares investment - grade suite, BSCJ behaves more like a bond than a typical bond fund.

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.

Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).

At its peak, Teck had more than $ 7 billion in debt outstanding, which caused its leverage ratio to rise, resulting in the company not only losing its investment - grade credit rating but getting downgraded deep into junk territory.