Sentences with phrase «yield bonds generally»

The American Century High Income Fund has typically invested at least 80 % of net assets in a portfolio of high yield bonds generally rated below investment grade by Moody's Investors Services, Standard & Poor's (S&P) Rating Services or Fitch.

Because high - yield bonds generally have a substantial correlation to equities, it could be expected that the portfolio's beta would be approximately between 1 --(0.15 + 0.10 + 0.05) = 0.7 and 1 --(0.15 + 0.10) = 0.75, which it was at 0.73.

High - yield bonds generally have a higher credit risk, because of their lower credit rating than traditional bonds.

Not exact matches

While I don't presume to read traders» (or trading computers») minds (see Barry ritholtz» note this morning about ex post facto rationalizations), generally speaking there is concern that the «taper» of long term bond purchases will cause bond yields (the percent of interest paid on them) to rise.

Higher yields generally hurt stock prices by making bonds more appealing to investors.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

Yes this is possible in any given year, but over the longer term bonds generally return close to their yields.

But keep in mind: More interest rate sensitive bonds generally have higher yields, so moving to a shorter duration investment could result in less income.

Each fund has a stated objective, generally focusing on a particular sector, such as corporate or Treasury bonds, or broad category, such as investment grade or high yield.

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

Because they are considered to have low credit or default risk, they generally offer lower yields relative to other bonds.

When the stock market dividend yield yields more than a 10 - year US treasury bond yield, it's generally a good sign to invest in equities.

Although municipal bond yields are generally lower than taxable bond fund yields, some investors in higher tax brackets may find they have a higher after - tax yield from a tax - free municipal bond fund investment instead of a taxable bond fund investment.

The yields and risks are generally higher than those offered by government and most municipal bonds, and the income is subject to state and federal taxes.

Investment grade vs. non-investment grade (high yield) Corporate bonds are generally rated by one or more of the three primary ratings agencies: Standard & Poor's, Moody's, and Fitch.

Generally, the higher the duration, the more the price of the bond (or the value of the portfolio) will fall as rates rise because of the inverse relationship between bond yield and price.

As long as Group of Seven nation bond yields remain generally lower than similar - maturity Treasuries, it's just one more reason why yields on U.S. bonds are likely to stay lower for even longer.

Lower - rated bonds generally offer higher yields to compensate investors for the additional risk.

This economic impact works in opposition to the interest rate risk they face: rising rates, which are bad for bonds generally, usually accompany a strong economy, which is good for high - yield bonds; falling rates, which are good for bonds overall, usually accompany a weak economy, which is bad for high - yield bonds.

TAXABLE BOND FUNDS: B - CHY - Corporate High - Yield Bond: Invest generally in corporate bonds rated below investment grBOND FUNDS: B - CHY - Corporate High - Yield Bond: Invest generally in corporate bonds rated below investment grBond: Invest generally in corporate bonds rated below investment grade.

In addition, sovereign wealth funds — which generally diversify their portfolios to include a small portion of alternate assets such as gold, private equity and real estate — are likely to raise their allocations following the low yield in government bonds over the last couple of years.

Two yield calculations are generally evaluated when it comes to selecting callable bonds for a portfolio: yield to maturity and yield to call.

The main exception to this global pattern has been Japan, where 10 - year bond yields have remained remarkably stable, generally trading in the range between 1.7 per cent and 1.8 per cent so far this year (Graph 8).

As yields have fallen, duration, or rate sensitivity, has risen, meaning that the risk associated with a change in rates has generally risen for most bond benchmarks and traditional funds.

In addition, the SEC yield is generally a poor guide for the return you should expect from a bond fund.

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.

Generally, the distribution yield of a fund reflects the average yield at which the underlying bonds were purchased.

Given the huge opportunity cost of allocating to cash or bonds at current yield levels, even generally optimistic return assumptions for stocks are enough to keep portfolio level returns near 0 % real.

Cons: The primary negative associated with investment grade floaters is that when issued they generally offer current yields that are significantly lower than a typical fixed rate bond of the same maturity offered by the same issuer.

Are bond market investors generally shrewder than their stock market counterparts, such that bond yield tops (bottoms) anticipate stock market bottoms (tops)?

Generally, UITB focuses on investment - grade securities, however the fund is allowed to place up to 25 % of the portfolio in high - yield bonds.

Of course, the coupons paid by high yield bonds are generally higher than what Treasury bonds of similar maturity would pay.

However, an aspect of leveraged loans that was not developed in this article is that the loans are secured by the assets of the operating company and the terms are usually superior to those of high - yield bonds, which are generally unsecured.

Of course, the coupons paid by high yield bonds are generally higher than what Treasury bonds of similar maturity would pay.

But most of these dividend stocks to invest in generally will pay a yield that is at least competitive with the bond market, and most have long histories of raising their dividends over time.

Non-Treasury bonds are generally evaluated based on the difference between their yield and the yield on a Treasury bond of comparable maturity.

Because bonds with longer maturities have a greater level of risk due to changes in interest rates, they generally offer higher yields so they're more attractive to potential buyers.

Because of the favorable tax treatment, yields are generally lower than those of bonds that are federally taxable.

Because these bonds aren't quite as safe as government bonds, their yields are generally higher.

The investment seeks results that correspond generally to the price and yield performance, before fees and expenses, of S&P California AMT - Free Municipal Bond index.

It «seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Capital U.S. Aggregate Bond Index»

Investment - grade bonds may have paltry yields, but generally hold their value when stocks get hammered — indeed, they may rise in value as investors flee to safety and drive interest rates down.

Bond exchange - traded funds (ETFs) and mutual funds are generally yielding in the 2 % range for lower risk options, while higher yields can be earned from less credit - worthy bond portfolBond exchange - traded funds (ETFs) and mutual funds are generally yielding in the 2 % range for lower risk options, while higher yields can be earned from less credit - worthy bond portfolbond portfolios.

Because municipal bonds seek to provide tax - free income, they have generally offered higher yields than their taxable counterparts.

High - yield, lower - rated («junk») bonds generally have greater price swings and higher default risks.

Two yield calculations are generally evaluated when it comes to selecting callable bonds for a portfolio: yield to maturity and yield to call.

Share prices and yield will be affected by interest rate movements, with bond prices generally moving in the opposite direction from interest rates.

Generally, when inflation is falling bond and earnings yields also decline.

Just as bond prices go up when yields go down, the prices of bonds you own now will generally drop as yields — interest rates — go up.

I - Bonds are not generally good for personal investment as they are not marketable when necessary, have redemption penalties and hold lower overall yields in general.