Sentences with phrase «volatility than investment grade bonds»
Not exact matches
High yield / non-investment-grade bonds involve greater price volatility and risk of default than investment - grade bonds.
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Manage volatility Because issuers of bonds generally make interest payments and repay principal, investment - grade bonds can be less volatile than stocks.
Hold - n - hope advocates believe that greater gains with stocks over investment grade bonds require nothing more than a commitment to accepting increased volatility.
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.
High - yield / non-investment-grade bonds involve greater price volatility and risk of default than investment - grade bonds.
Our research on the Fundamental Index ® concept, as applied to bonds, underscores the widely held view in the bond community that we should not choose to own more of any security just because there's more of it available to us.10 Figure 9 plots four different Fundamental Index portfolios (weighted on sales, profits, assets and dividends) in investment - grade bonds (green), high - yield bonds (blue) and emerging markets sovereign debt (yellow).11 Most of these have lower volatility and higher return than the cap - weighted benchmark (marked with a red dot).