Sentences with phrase «yield bonds play»

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

Not exact matches

If you take the view that few if any of Trump's proposals will play out as hoped, Fehr recommends a defensive positioning, with a heavy weighting to bonds and large - capitalization, high - yielding stocks such as telecoms, utilities and consumer staples.

That relationship has played out this year — as interest rates have risen since January, the HYG high yield corporate bond ETF has come under pressure.

In contrast, bond market exposure (in the form of yield curve and spread risk) has played a relatively minor role in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our model.

«Every time the bond market moves dramatically and unexpectedly higher in yield, the consensus forecast plays catch - up,» says Matthew Hornbach, Global Head of Interest Rate Strategy for Morgan Stanley Research.

If that were to play out, rising yields would mean bond prices would fall.

Does anyone really believe that extreme yield - seeking has not already played out in the stock and bond markets?

If this bond - equity relationship remains unstable when yields are at risk of climbing further, long - term Treasuries may not play their traditional portfolio diversifying role.

That post illustrated the role played by the Fed's actual bond buying on the trajectory of the real yield while an earlier post showed how the Fed's communication about its balance sheet intentions in 2013 also influenced the performance of the real yield.

Even though our contacts in the world of credit have been reporting better - than - expected results in the world of energy production, many Wall Street firms have been playing the long - side of energy (and bond yields), and with disastrous results.

Although sovereign bonds are expensive at these low yields, they could have a role to play in portfolio construction.

The note against bond spread (NOB) gives traders and investors a means with which to play anticipated changes in the yield curve.

International stocks, high yield bonds, real estate investment trusts — these may all play a part in your portfolio.

Municipal bonds can play an important role in an investor's portfolio, offering a higher tax - equivalent yield than many taxable fixed income alternatives, and the potential for portfolio diversification to stocks and other types of bonds.

Bonds, or fixed income, essentially play two roles in a portfolio: They offer yield, or income, as well as potential diversification benefits as a sort of ballast to counter equity risks.

Traditionally, bonds have played two roles within a portfolio: generation of yield and protection of principal.

The long end of the yield curve for U.S. corporate and municipal bonds could be held range bound over the next several months as there are various forces at play.

The S&P Municipal Bond Puerto Rico Index logged a -7.17 % return in 2015 which played a significant role in muting the returns of the S&P Municipal Bond High Yield Index.

In it I argued that higher quality high yield bonds were overvalued, but that CCCs might still have some play.

For those investors looking for a good balance of risk and reward, high yield bonds could be a great play this year.