Sentences with phrase «when junk bond»

But in an environment like today when junk bond prices are at all - time highs, there is no justification for maintaining artificially low real rates.

All this changed when the junk bond market crashed in the late 1980s and Drexel Burnham Lambert subsequently folded in 1991.

When Junk Bonds Perform Poorly Signs of financial distress or weakness from the issuer will drag down the price of these securities.

Not exact matches

His legal background proved invaluable in 1991, when the state of California and its insurance commissioner John Garamendi seized Raleigh's then - financial partner Executive Life Insurance Company after the value of the insurer's multibillion - dollar portfolio collapsed — a fate tied to its massive investments in the junk bond market of the go - go 1980s.

That's left a lot of junk bond fund managers with plenty of exposure to the energy sector at a time when oil prices have crashed and defaults, particularly among fracking companies, are rising.

Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.

When people see banks browbeating the bond rating agencies and accounting firms to whitewash the quality of what they're pawning off on their customers, when they see bank lobbyists getting Washington to block state prosecutions of financial fraud so as to clear the way for more predatory lending and false packaging of the junk securities they're selling and to win the right not to reveal their true financial position, there's a good reason not to buy what's in these black boWhen people see banks browbeating the bond rating agencies and accounting firms to whitewash the quality of what they're pawning off on their customers, when they see bank lobbyists getting Washington to block state prosecutions of financial fraud so as to clear the way for more predatory lending and false packaging of the junk securities they're selling and to win the right not to reveal their true financial position, there's a good reason not to buy what's in these black bowhen they see bank lobbyists getting Washington to block state prosecutions of financial fraud so as to clear the way for more predatory lending and false packaging of the junk securities they're selling and to win the right not to reveal their true financial position, there's a good reason not to buy what's in these black boxes.

I would suggest that when the current stock bubble pops, the two areas in red circles above will look like small blips in comparison to the carnage that is in store for the junk bond market.

When I was a junk bond trader in the 1990s» we referred to anyone who bought a bond yielding over 12 % as «a yield hog.»

Mr. Swaffield has described the «yield hog» chasing strategy that we used to laugh at when I was a junk bond market professional.

When I was a junk bond trader in the 1990's, high yield money would be pulled from the market abruptly and quickly, usually about a week before the stock market would undergo a big sell - off.

For example, Overseas Shipholding Group (equity ticker OSG) is a deeply junk rated oil tanker company that has seen its bonds drop from trading around par (par means 100 cents on the dollar when comparing the market price to the face amount of the bonds) to distressed levels between 60 and 70 cents on the dollar.

So you've learned when to be in the junk bond market and when to be out as well as how to evaluate individual junk bonds and have decided to take the plunge and pick out an individual junk bond or two.

Junk bonds, bank loans, and other riskier types of debt have often been analogized to the canary in the coal mine when gauging the health of global markets.

Bank of America Merrill Lynch raised a total of $ 2.6 billion in investment banking fees in the US last year, when it benefited from a boom in junk bond underwriting as corporate issuers rushed to take advantage of low rates ahead of the Federal Reserve's plans to withdraw stimulus measures.

If we extend this thought to the bond market, we find an underlying truth when it comes to junk and yields.

When the Fed decided to terminate the junk bond business to prevent the real estate market from blowing up, all of our customers in North America, and Europe, suddenly stopped buying at the same time.

The idea of debt amnesties was to prevent debt from tearing society apart — to prevent the kind of crisis that the United States has been in since 2008, when President Obama didn't cancel the junk - bond debts, or the debts that tore the Greek economy apart — when the IMF and Europe imposed them on Greece instead of letting it default on debts owed to French and German bondholders.

It helps to be a worldclass economist - historian, to have been a trader and Managing Director of Drexel Burnham Lambert when the firm was the junk bond king of Wall Street, to have lived in Hong Kong for a quarter of a century, and to have a contact book crammed with the home numbers of many of the movers and shakers in the financial world.

What do you get when you combine junk bonds, dividend stocks and intermediate - term treasury notes?

This risk is higher when investing in high yield bonds, also known as junk bonds, which have lower ratings and are subject to greater volatility.

When the Fed raises rates, it increases the competition for capital that junk bonds and junk funds face.

Although Bain Capital was far removed from the scandals that brought down Drexel and Milken, its association with the junk - bond king came back to haunt Romney when he eventually ran for office.

This is the county's seventh consecutive bond upgrade since 2014, when Rockland's bonds were rated just above junk and the county had a $ 138 million deficit.

Our bonds were nearly junk back when I took office.

Writing a bandana around his head whether delivering a book talk on tour or dancing in a church and throughout Wallace's his five - day interview with Jesse Eisenberg's character David Lipsky, Segel and Eisenberg bond over their mutual love of junk food like colas, burgers, fries and licorice, though when Eisenberg's Lipsky appears to be «hitting on» Wallace's ex-girlfriend, Wallace becomes morose, hostile and stops talking to the journalist for a while.

When Michael Milken, the junk bond king, was let out of prison, he said that he wanted to be involved in education because he considered it one of the biggest moneymakers for American business.

These floating rate bonds are a good alternative to high yield corporate and junk bonds when interest rates are rising.

The structural issue at work encouraging the deal - making is that cash flow yields are markedly above junk bond yields, similar to the environment during the late «80s when the market in junk bonds flourished.

The bubble was a combination of (a) teaser rates on option ARMs which were like financial time bombs, (b) liar loans in which the rules of good mortgage underwriting (20 % down, 28/36 ratios) went out the window, (C) people at rating agencies who decided that if one pools enough junk loans into one bond, it's magically AAA, and (D) Credit default swaps which encouraged these bad loans, and when they collapsed a number of people walked away with billions of dollars.

AAA bonds carry lower yields than junk bonds much like the interest you get when lending to people with higher or lower credit ratings.

When risk - free and AAA - rated corporate bonds yield less than 4 %, 3.5 % yield on utilities and 6 % yields from junk ETFs are difficult to pass up.

How can Gundlach compare junk bonds, which do better when the economy heats up, with long - term Treasurys, which get killed when the economy revs up and the Fed raises interest rates?

If you had said this 6 - 10 months ago, when I recommended buying junk bonds, I would be impressed.

Junk bonds when carefully chosen may be an exception.

If and when the Fed raises interest rates, the junk bond sector will be negatively impacted relatively more than less risky bonds.

The risks: History shows that many investors flee junk bonds when a recession hits, and bond prices can temporarily collapse.

Before 1977, when new junk - bond issues took off,... non-investment-grade bonds were thought of as «bad» investments, at any price.

Because managers Dan Fuss and Kathleen Gaffney typically own a large helping of high - yield, or junk, bonds (those rated double - B or lower), as well as bonds from developing nations, the fund took a hit when investors bailed out of anything smacking of risk during the financial crisis and rushed into Treasuries.

Never in my life would I have considered buying a CCC junk bond at 110 to yield 7 % (quick ratings guide: BBB = investment grade, BB = fine company, B = either a fine or a sketchy company the ratings agencies have no clue which, CCC = this will default just give it a few years, D = this defaulted like we said when we rated it BB uhhhh we're not good at this).

In 1978, he launched a fund at Citibank that invested in junk bonds at a time when most investment firms thought them too risky to own — a «powerful bias» that produced marvelous inefficiencies.

When credit locks up, junk bond prices fall rapidly, and you see more defaults.

Mexico / bonds in 1994, Cash flow Collateralized Debt Obligations [CDOs] 1999 - 2001, Manufactured Housing Asset - backed securities [ABS] 2002 - 2004, and the GM / Ford downgrade to junk crisis in May 2005 when the correlation trade went wrong.

In 2015, Third Avenue Management shocked Wall Street when they froze withdrawals from a $ 788 million mutual fund that was highly focused on junk bonds.

Therefore, when the ratio of junk bond indexes to higher - quality corporate bond indexes rises, we know that investors are aggressive.

Opportunistic investors moved into junk bonds in late 2008 when, in the face of frozen credit, yields on junk bonds went up to more than 20 % on the back of falling prices and to richly compensate investors for taking up the risk.

A similar situation occurred in 2002, when the junk - bond market collapsed for a second time.

When you have many different parties going into the markets seeking income, not caring where they get it from, and a shock hits one part of the market, the effect flows to other areas If all of a sudden yields on junk bonds look cheaper, the yield trade - offs of buying junk and selling dividend paying common stocks looks attractive.

Should Illinoisans tolerate the defiance exhibited here in Illinois to follow the dictates of the economic disastrous Paris Climate accord, given the near junk bond status of the state, and when the accord has nothing to do with climate change and everything to do with punishing the US for being too industrial, too successful, too Western, and a host of other supposed evils that cause leftists to become unhinged?

Surely if they do not now have a list of the reasons why they changed a sites records then the following data record is junk bond stuff If they have do nt have a list of the dates when they adjusted the temp series upwards then the following data record is also junk bond stuff If the can supply reasons why they upped a specific class 1.2 record then the reason must be valid and can be audited to check its veracity.