Sentences with phrase «yield bonds»

Also, include high yield bond funds in this percentage allocation.

Anyone reading this who has investments in high yield bond funds should get out now.

This was more liquid than the comparable high yield bond market activity levels of $ 6 billion.

However, including high yield bonds in portfolios has been less exciting.

The high yield bond indices are rolling over quickly.

At the same time, the market will be taking down the prices of higher yielding bonds as slowing growth leads investors to demand higher returns when taking credit risk.

High - yield bonds offer higher interest rates to compensate for their perceived higher - risk levels.

I am looking forward to exchanging some low yielding bonds for cheap stocks should the opportunity arise.

On a risk adjusted basis, the high yield bonds did not add value to the portfolio.

High yield bond spreads are a little tighter than they should be according to the analysis.

If interest rates rise, you may benefit from purchasing higher - yield bonds with the income from the bonds already in your ladder.

For example, entering 2014, we had virtually no high - yield bonds at all, but we had emerging market bonds.

This shouldn't surprise us, because the credit quality was low and the volume of high yield bond issues was high 2004 - 2006.

Because investors are being asked to assume this risk, high yield bonds tend to come with higher coupon rates, which can generate additional investment income.

Taking the interest rate up by one and two percentage points to 6 % and 7 % yields bond prices of $ 98 and $ 95, respectively.

Negative yielding bonds are worth buying as long as yields keep declining.

If these put options move into the money, investors can expect our net exposure to the High Yield bond sector to be greatly reduced.

With data going back to 1986, high yield bond investors should only anticipate a forward return that mirrors treasury bond performance with similar duration.

Taking on high - yield bond investments requires a thorough investigation.

High Yield Bonds via Corporate Debt investment instruments (ETFs, Mutual Funds, Individual Bonds and other exotic instruments) provide a unique risk / reward equation unparalleled in recent times.

So, the implication is watch for a sustained rise in in high - yield bond yields.

For this reason, investors in high - yield bonds typically require a higher rate of interest for taking on the higher risk posed by these debt securities.

The way to make money in high yield bonds over the long term is to try to avoid as many of the eventual defaults as possible.

If you could look at high yield bond trades you would have seen that they were declining as well.

It is similar to being a high - yield bond manager.

High yield bonds generally have greater price swings and higher default risks than investment grade bonds.

There are plenty of high - yield bond strategies and funds that can be almost as volatile as stocks and even occasionally turn out 10 - 20 % annual returns.

Future high yield bond returns will likely be more muted — and depend more on improving fundamentals than commodity prices.

We are proud to have provided our shareholders with what we believe is a conservative approach to investing in high yield bonds since 1995.

You also get to use tax - inefficient investments like REITs and high - yield bonds without having to worry about the tax implications.

They are often called junk bonds or high - yield bonds because they have to pay higher interest rates to attract investors.

High - yield bond issuers may be companies that are highly leveraged or experiencing financial difficulties.

When rates rise, the price of older, lower - yielding bonds fall.

Many retirees pour their savings into «income investments» like dividend stocks and high - yield bonds when they want to turn their savings into reliable income.

Here's my bias: at the first investment shop I worked in, the high yield manager told me that there is a nominal yield for high yield bonds which reflects the risk.

In the same fashion, the high yield bond value will be equal to the smallest possible value of your investment.

The total return expectation for owning high yield bonds today is negative.

The focus on short term high yielding bonds allows us to screen for the «best in class» short term high yielding fixed income ETFs.

High yield bonds remain more attractive than leveraged loans.

They include individuals who invest in high - yield bonds through direct ownership and / or through mutual funds; insurance companies; pension funds and other institutions.

Bond investors would then know what they would get and banks are happy to extend loans when they get the High Yield bond business.

Why are high - yield bonds so popular today?

Of course we still have some better yielding bonds in our portfolio, but they will expire in 2018 and 2019.

All that is as it should be, so long as investors understand the role that high - yield bonds play in a portfolio.

Eventually, they'll have to turn to assets like stocks, commodities and higher - yielding bond products that carry greater return — and greater risk.

Bond values fall in a rising interest rate environment because investors sell bonds in favor of higher interest yielding bonds.

Investors have rushed over to high yield bond exchange - traded funds (ETFs) in a search of yield.

Risk and reward is always related, so higher yielding bonds always carry more risk of default.

High - yield bonds need to pay more than safer alternatives to compensate for the greater likelihood of default.