Sentences with phrase «with junk bond yields»

Not exact matches

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

With equity valuations at historic highs and government bonds barely eking out a return, junk bonds offer solid yields at a good price, he reasons.

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

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

Currently, some junk bonds with triple - C ratings are yielding under 6 %.

Yeah, investors often confuse yield with fixed income risk, but I agree that junk bonds are much closer to stocks from a risk perspective.

Also, stocks are volatile and generally the riskiest assets, with the possible exception of credit default swaps, high - yield «junk» bonds, and other similar assets.

On the subject of junk debt, in the first two quarters of 2014, European high yield bond issuance outstripped U.S. issuance for the first time in history, with 77 % of the total represented by Greece, Ireland, Italy, Portugal, and Spain.

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.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

These risks increase with high - yield, or so - called «junk,» bonds.

Demand for yield combined with the benefits of floating rate interest payments and better security provisions than fixed rate junk bonds all helps to draw attention to this asset class.

U.S. junk bonds continue to have no stink to them as demand for yield far outweighs the supply and seemingly the credit risks associated with these bonds.

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

Even corporate junk bonds aren't so high - yield these days, with those securities yielding 6.36 percent on Friday, after hitting a record low of 5.98 percent last week.

Bonds with lower ratings are considered «speculative» and often referred to as «high - yield» or «junk» bBonds with lower ratings are considered «speculative» and often referred to as «high - yield» or «junk» bondsbonds.

Indeed, the rest of the world's central banks are purchasing assets (e.g., government debt, investment grade corporate bonds, higher - yielding junk corporates, stocks, etc.) with QE «funny money» in the hopes that it will boost economic growth.

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.

Milken and company made a killing selling new issues of «safe» junk bonds with the lure of higher yields.

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 %.

Attracted by higher yields than on safer bonds, and with lower valuations than on stocks currently, portfolio managers and individuals alike have poured money into junk bonds this year.

Another important takeaway from the Callan table is the value of holding a portion of your nest egg in a safe haven like investment - grade bonds (as opposed to high - yield, or junk, bonds, which are more volatile and tend to move more in synch with stocks than bonds).

The risks associated with higher - yielding, lower - rated securities (commonly called junk bonds) include higher risk of default and loss of principal.

Usually, investment grade bonds are associated with lower yields, while junk is bracketed to higher yields.

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.

Edit in response to comment: Corporate bond correlation with stocks is positive but generally not very strong (except for high - yield junk bonds) so while they don't offset stock volatility (negative correlation) they do help diversify a stock portfolio.

The collapse of the energy market negatively affected the junk bond market, with all headline high - yield indices posting negative returns.