Sentences with phrase «yield bonds typically»

In recessions, high - yield bonds typically lose more principal value than investment - grade bonds.

High yield bonds typically offer better return potential than Treasurys or investment grade bonds as a way of compensating investors for taking on greater risks.

Not exact matches

Typically, higher interest rates make existing bonds less attractive to buyers, since they can get new notes at loftier yields.

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

And the Fed increasing interest rates, plus rising bond yields, typically makes stock investors nervous.

Typically, a higher - rate environment will increase spreads for banks / insurers, but you're absolutely right that the 10 - year yield could stay flat, especially when the yields for government bonds of other countries are so low.

Typically, the market for high yield bonds is less liquid than the market for investment grade or government bonds.

Higher transaction costs Due to a typically large spread between bid and offer prices, and higher transaction costs associated with less liquid securities, trading high yield bonds can be costly.

-LSB-...] The Most Interesting Asset Class Over the Next Decade «Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.»

Floating - rate loans have yields and volatility similar to high - yield corporate bonds, with one major difference: As their name indicates, their interest rates «float,» adjusting periodically based on a benchmark rate, typically the London Interbank Offered Rate (LIBOR).

Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.

Investors typically evaluate corporate bonds by looking at their yield advantage, or «yield spread,» relative to U.S. Treasuries.

Highly rated companies that are financially strong and have massive amounts of cash on their balance sheets — think Microsoft, Exxon, etc. — can typically offer bonds with lower yields since investors are confident that the companies won't default (i.e., miss interest or principal payments).

Stock and high - yield bond portfolios typically tumble.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

Although default risk is typically low, there are high - yield municipal bond funds that increase credit risk.

Short - term bonds tend to be less vulnerable to rising rates than longer - term bonds, while typically providing a higher yield than cash.

(For example, a bond paying 4 % typically fetches less when other, similarly situated bonds are paying 5 %; the market is usually smart and fast enough to price that 4 % bond to yield 5 %.)

Money market funds are essentially ultra-short-term bond funds that offer investors liquidity — as in quick access to their cash — and a small yield that's typically more attractive than merely parking cash in a bank savings account.

I've previously outlined that high yield credit risk is typically less ideal than simply gaining credit exposure through stocks and rate exposure through bonds.

It is used as one component to determine the value of investments, and is typically represented by the yield of a Treasury bond.

The chart shows that a higher yield differential between U.S. and German government bond yields in the past typically spurred more foreign purchases of U.S. bonds, supporting the dollar.

Less than one - third of pension - fund assets typically are parked in safer, lower - yielding government bonds and other fixed - income investments.

AmiNo flow utilizes 2 grams of L - citrulline per serving rather than the bonded L - citrulline malate, as this form would typically only yield 50 % of actual L - citrulline.

(For example, a bond paying 4 % typically fetches less when other, similarly situated bonds are paying 5 %; the market is usually smart and fast enough to price that 4 % bond to yield 5 %.)

Typically, the higher risk a bond or asset class carries, the higher its yield spread.

These bonds are typically high - quality and very liquid, although yields may not keep pace with inflation.

But their interest - rate sensitivity can be lower because they typically offer higher yields than many other types of bonds.

This meant that municipal bonds, which typically yield less than Treasuries before tax, began to offer yields higher or comparable to federal government debt on a pre-tax basis.

So, typically, bond yields and stock prices move in opposite direction (although this inverse correlation can break down during periods of heightened risk aversion).

Short - term bonds tend to be less vulnerable to rising rates than longer - term bonds, while typically providing a higher yield than cash.

Investment grade corporate bonds typically offer better return potential than Treasury bonds, and investment grade debt allows investors to pursue those returns without adding as much risk as high yield bonds.

The tradeoff is that interest rates and yields are typically lower for muni bonds by comparison.

Corporate bonds are popular income investing assets because they typically pay higher yields than government securities, although they also carry correspondingly higher risk.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

When the Fed raises its target interest rate, other interest rates and bond yields typically rise as well.

Rates on loans typically reset every 90 days, implying a duration of 0.25 versus a current effective duration of 4.18 on the S&P U.S High Yield Corporate Bond Index.

Municipal bond buyers typically demand a higher yield for this illiquidity — «Liquidity Premium».

Government bonds typically do not provide the highest yield, but is one of the safest investment vehicles out there.

So when bond yields drop, typically, conventional mortgage rates fall as well (see historical graph below).

CAPM's starting point is the risk - free rate — typically a 10 - year government bond yield.

High - yield bonds (sometimes referred to as junk bonds) typically offer above - market coupon rates and yields because their issuers have credit ratings that are below investment grade: BB or lower from Standard & Poor's; Ba or lower from Moody's.

Note that any period of significant price appreciation for bonds may be unusual, as bond prices generally move in the opposite direction of bond yields, which do not typically increase or decrease consistently over extended periods.

From a sector perspective, energy, materials and financials make up more than a third of the MSCI Europe Index.2 Many of these companies tend do well when inflation is rising and bond yields are rising because typically inflation nudges up commodity prices and financial companies tend to profit when the yield curve steepens.

Since prepayments typically rise as interest rates fall and vice versa, the basic (pass - through) MBS typically has negative bond convexity (second derivative of price over yield), meaning that the price has more downside than upside as interest rates vary.

However, if you invest in bonds, low interest rates typically raise bond prices while lowering bond yields.

The rise in bond yields over the past few of weeks typically stimulates an increase in mortgage rates.

Although default risk is typically low, there are high - yield municipal bond funds that increase credit risk.

the relationship between interest rates and time, determined by plotting the yields of all or as many bonds of similar credit quality (eg: Treasuries or AA - rated Corporates), against their maturities; yield curves typically slope upward since longer maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed - income product types and credit qualities; these are based on bonds that Fidelity recognizes and are not equal to the entire universe of bonds, which is significantly larger than the number of bonds offered by Fidelity on any given day

Typically, the longer a maturity on a bond, the greater the yield.