Sentences with phrase «with bond credit ratings»

The guy from the ratings agency would scratch his head, tell you spreads aren't his job, but then volunteers that spreads are correlated with bond credit ratings on average.

Not exact matches

But, what typically happens in this cycle, is interest rates start to accelerate, leading credit spreads — essentially the gap between how much more of a return bonds provide compared with US treasuries — to compress.

Vicki Bryan, senior analyst of independent research for bond - rating company Gim me Credit, said Valeant's problems aren't over with the termination of its relationship with Philidor.

More from Balancing Priorities: What a rate hike means for your credit card What to do with your bond portfolio as Fed rates rise Credit scores are set tcredit card What to do with your bond portfolio as Fed rates rise Credit scores are set tCredit scores are set to rise

More from Balancing Priorities: What to do with your bond portfolio as Fed rates rise Credit scores are set to rise Don't make these money mistakes when you're just starting out «There is no sense in bearing the risk of an adjustable rate when you can lock in a fixed rate at essentially the same level,» he said.

Although the retailers have been negotiating with bond holders, who have accepted significant discounts and offered longer terms, the basic financials are enough for Moody's to rate 13.5 percent of the retailers it follows as a Ca or Caa credit risk.

You're still dealing with all of the same bond risks as every other investor when you buy individual bonds — interest rate risk, credit risk, inflation risk, duration risk, default risk, etc..

In today's volatile environment, it's a good idea to consider building hedges to existing stock and credit allocations with the help of bonds that are more sensitive to interest rates.

The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $ 50 million, have an amount outstanding of at least $ 5 million and have a maturity of 8 to 12 years.

These ETFs typically hold bonds issued by companies with lower credit ratings.

The PowerShares Total Return Bond ETF is an actively managed fund with the ability to invest in any number of fixed income securities with varying credit ratings, countries, and durations.

Immediate credit challenges include potential draws on liquidity associated with rating triggers embedded in the city's letters of credit (LOCs), standby bond purchase agreement (SBPA), lines of credit, direct bank loans, and swaps [Oops — banks can and should pull the plug].

In an unconstrained bond fund, the manager can hedge interest rate risk with futures, options, or swaps, or even short Treasury bonds or notes, and make up the loss in yield by overweighting credit.

Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.

Bond funds and bond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fuBond funds and bond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fubond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the funds.

3 The iBoxx US dollar corporate bond index, for example, comprises more than 4,200 bonds from 1,200 issuers (associated with 900 companies), all with varying credit ratings, coupons and other structural features; see Tierney and Thakkar (2015).

This is where the ratings agencies, or those companies that are tasked with classifying the credit worthiness via bond credit ratings come into play.

You select bonds at a credit rating with which you feel comfortable and a rate and term that you need.

High - yield bonds, those from companies with weak financial positions and poor credit, are offering rates as high as 9 % for 30 - year terms but also offer the risk of bankruptcy before the bond matures.

Companies with excellent to low credit ratings issue investment - grade corporate bonds, which have lower interest rates because of the safety of the investment.

You should use other factors along with credit rating information when deciding whether to buy a bond.

With Berkshire Hathaway being so well managed, why doesn't it have the highest credit bond rating?

You can make sure you're getting a fair deal by taking advantage of publicly available data on the pricing of bond you're looking to buy, or bonds with similar maturities, credit ratings and interest rates.

Check the Municipal Bond's Credit Rating through Rating Agencies -: There are some credit rating Agencies whose main duty is to analysis different municipal bonds and rate them according to municipals that has the ability to pay bond rates and principal in tune with the agreemBond's Credit Rating through Rating Agencies -: There are some credit rating Agencies whose main duty is to analysis different municipal bonds and rate them according to municipals that has the ability to pay bond rates and principal in tune with the agreCredit Rating through Rating Agencies -: There are some credit rating Agencies whose main duty is to analysis different municipal bonds and rate them according to municipals that has the ability to pay bond rates and principal in tune with the agreRating through Rating Agencies -: There are some credit rating Agencies whose main duty is to analysis different municipal bonds and rate them according to municipals that has the ability to pay bond rates and principal in tune with the agreRating Agencies -: There are some credit rating Agencies whose main duty is to analysis different municipal bonds and rate them according to municipals that has the ability to pay bond rates and principal in tune with the agrecredit rating Agencies whose main duty is to analysis different municipal bonds and rate them according to municipals that has the ability to pay bond rates and principal in tune with the agrerating Agencies whose main duty is to analysis different municipal bonds and rate them according to municipals that has the ability to pay bond rates and principal in tune with the agreembond rates and principal in tune with the agreement.

High - yield bonds are issued by corporations with lower credit quality ratings.

«The same thing holds with bonds — so you have to look at the credit rating of the issuer, [which can indicate] whether it can keep its promise [to pay you back with interest].»

These bonds offer higher yields but are coupled with a higher risk of default, as signified by these companies» lower credit ratings.

The following chart, taken from the paper, compares the stock - bond correlation (blue), the credit spread (green) and the federal funds target rate (red) over the entire sample period, with the latter two series scaled up by a factor of ten to facilitate comparison.

Interest rate sensitivity, also known as duration, is based on the Barclays U.S. Credit Bond Index (all maturities), and short - term bonds represented by the subset of bonds within the index with maturities of 1 - 5 years (Barclays 1 - 5 Year U.S. Credit Bond Index).

The new plan also offers a major bow to bondholders and Wall Street credit rating agencies, who might be worried that state bonds — with payments guaranteed by the state's income tax revenues — could face future payment issues if Albany is to rely less on income tax collections.

With the loans the town backed indirectly for Singh, and the political, legal and financial brouhaha that followed, Oyster Bay's pristine credit rating fell to junk - bond status.

And with the credit rating, she's hoping to get a lower rate on water bonds to hopefully lower water rates.

With the governor and state legislators at loggerheads over how to close the budget gap — a necessary first step toward restoring the state's credit rating and restoring its ability to sell bonds — there may be more rough sailing ahead.

Public charter schools then have access to bonds with the full faith and credit of the State of Texas, which gives them the highest bond rating available (AAA).

Having a good credit history makes it possible for service providers to gauge how much of a risk you are, a good rating means more financial options and opportunities — this makes it possible to apply for a bigger bond with home loan providers at low interest rates, plus you can also get various other loans from other institutions at affordable rates.

If or when a credit event does occur with a loan, the recovery rates on bank loans are 86 %, much higher than the recovery rates secured, unsecured or subordinated bonds.

On Wednesday, July 30th, S&P cut the credit rating on Argentina's foreign currency bonds to «selective default» after they failed to reach a deal with holdout bondholders from their last default in 2001.

Unlike with stocks, there are organizations that rate the quality of each bond by assigning a credit rating, so you know how likely it is that you'll get your expected payments.

An option could be to invest in an ETF with short term bonds (e.g. 1 year) with AAA credit rating (high quality, so very low default rate).

The unconstrained strategy can be thought of in two ways: always trying to earn a positive return with high probability (T - bills are the benchmark, if any), or being willing to accept equity - like volatility while the bond manager sources obscure bonds, or takes large interest rate or credit risks.

Higher - investment grade corporate bonds, such as those with «AAA» credit ratings, tend to have very low default risk.

As mentioned earlier, bonds with varying levels of interest - rate sensitivity and credit risk have historically performed differently as rates rise.

The value of these bonds will depend on the credit rating, and because of this there are higher risk levels associated with these investments.

The bond markets are extremely active, with interest rates constantly changing in response to a number of factors including changes in the supply and demand of credit, Federal Reserve policy, fiscal policy, exchange rates, economic conditions, market psychology and, above all, changes in expectations about inflation.

These bonds offer higher yields but are coupled with a higher risk of default, as signified by these companies» lower credit ratings.

The effect of this rule is that a taxpayer who purchases a tax - exempt bond subsequent to its original issuance at a price less than its stated redemption price at maturity (or, if issued with OID, at a price less than its accreted value), either because interest rates have risen or the obligor's credit has declined since the bond was issued, and who thereafter recognizes gain on the disposition of such bond will have part or all of the «gain» treated as ordinary income.

High - yield bonds are issued by corporations with lower credit quality ratings.

Preferred shares are extremely popular with taxable investors, because have little price volatility except when interest rates move (which makes them similar to corporate bonds), and because their distributions are eligible for the dividend tax credit.

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.

It doesn't matter if you measure risk by standard deviation of returns, beta, or credit rating (with junk bonds).