Sentences with phrase «with junk bond funds»

Less risky bond funds invest in corporate bonds while riskier endeavors toy with junk bond funds in an effort to elicit a higher return.

Not exact matches

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.

Also remember that if a bond fund yields 6 % currently, it is stuffed with junk bonds.

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.

Greylock, a $ 990 million hedge fund run by Willem J. «Hans» Humes, says in a filing with the Securities and Exchange Commission that international junk bonds are «generally considered to be predominantly speculative with respect to the issuer's capacity to pay,» and that defaulters sometimes end up shielded by «principles of sovereign immunity.»

Other factors also impact portfolio performance; most notably, the specific market segments in which it is invested — durations of junk bond funds will exceed durations of treasury funds with similar maturities.

There are various ways to participate in the Junk Bond rally that is just underway - from purchasing individual corporate bonds to diversifying risk with double - digit yielding Bond ETFs, Mutual Funds and individual corporate paper.

With the advent of the 1980s we had two innovations: junk bonds and bond index funds.

A fund with this exposure can certainly lose money during a 2008 - type crisis because of liquidity concerns, but it won't suffer anything like the carnage we saw with junk bonds.

@Jerry, I agree that today the main risk in bonds is duration risk (AKA interest - rate risk)-- last weekend's Barron's has an interview with the UBS Wealth Management top managers pointing out this means convincing investors to switch from Treasuries and investment - grade corporates to well - selected junk (HYLD is a jewel there — DO N'T go for index funds in bonds, very differently from ones in stocks they make no sense... where's the sense in wanting to lend more to companies which are more indebted?!

It may not be appropriate, therefore, to compare the performance of a high - yield (or «junk») bond fund with these averages.

It may not be appropriate to compare the performance of a high - yield (or «junk») bond fund with this average.

Even as junk bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 12 %.

Over the past 15 years, the average junk bond fund has returned an annualized 6.9 % in interest and principal gains, compared with 3.9 % for an index of high - quality U.S. bonds.

However, a junk bond can be a useful diversification tool if you are intimately familiar with the company and its operations, and investing a small part of your portfolio in a high - yield bond fund might be a good strategy.