Mackenzie Floating Rate Income ETF (TSX: MFT) seeks to generate current income by investing primarily in floating rate debt instruments and / or high
yield debt securities of issuers located anywhere in the world.
High - yield municipal bonds may be subject to increased liquidity risk as compared to other high -
yield debt securities.
Lower - rated or high
yield debt securities involve greater credit risk, including the possibility of default or bankruptcy.
Lower - rated or high
yield debt securities («junk bonds») involve greater credit risk, including the possibility of default or bankruptcy.
The Sub-Advisor seeks to achieve the fund's investment objective by selecting a focused portfolio of high -
yield debt securities (commonly referred to as junk bonds).
Prior to joining Cerberus, Mr. McLeod managed the leveraged finance origination and execution activities at CIBC World Markets from 1998 to 2006, where he originated, structured and executed transactions involving high
yield debt securities, leveraged loans, privately placed mezzanine securities and merchant banking investments.
Not exact matches
In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market
debt and mortgage - backed
securities as it brings higher prices and lower
yields, he said.
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.
Bond investors like mutual funds and pension funds hope to buy
securities with comparatively higher
yields than other asset - backed
debt that could also provide diversification benefits.
But cross-country differences in equity returns declined to pre-crisis levels while the range of
yields on
debt securities issued by banks and by non-financial corporations also narrowed, suggesting that there is some integration at least in prices of financial instruments.
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 Treasur
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 Treasur
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 Treasur
securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected
Securities (TIPS), and Treasur
Securities (TIPS), and Treasury Auctions
Our team of credit professionals deliver sales and trading capabilities across a wide range of fixed income asset classes including high
yield, distressed and investment grade bonds, convertible bonds, public and private corporate
securities, leveraged loans and emerging market
debt.
The potential counter weights that could cap the 10 - year
yield would be a negative stock market reaction that drives investors to bonds; lower interest rates outside the U.S. that make the U.S.
debt relatively more attractive, and good demand for longer - dated
securities from insurers and others.
The fund invests primarily in investment grade
debt securities, but may invest up to 10 % of its total assets in high
yield securities rated B or higher by Moody's.
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.
• Lower - quality
debt securities generally offer higher
yields but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.
Each Friday, I present three closed end funds invested in
debt or
debt like
securities that are
yield rich and attractively priced.
Such strategies involve investing predominantly in corporate credit, including senior secured and mezzanine loans and high
yield, distressed and high grade
debt securities, private equity controlled positions, real estate investment and investment in pools of non-performing loans in Europe and Asia.
Investing in higher -
yielding, lower - rated, floating - rate loans and
debt securities involves greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.
Each Friday, I present three closed end funds invested in
debt and
debt like
securities that are
yield rich and attractively priced.
As long as investors aren't too concerned about the risk of capital losses - that is, as long as investors are in a risk - seeking mood (Iron Law of Speculation), a mountain of zero - interest hot potatoes will also embolden investors to chase
yield further out on the risk spectrum, for example, in junk
debt, stocks and mortgage
securities.
Income Strategy can own high -
yield corporate
debt, income - paying common stock, preferred shares, convertible
securities, REITs, business development companies, MLPs and more.
In recent months, the
yield on US corporate bonds, especially investment - grade
securities, is a little more than 100 basis points compared to the
yield on government
debt, dropping within striking distance of the lows seen post the 2008 financial crisis.
Investors have taken note and reduced their demand for Canadian
debt securities, pushing up bond
yields and, consequently, mortgage rates.
Investments in high -
yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated
debt securities.
The Oakmark Equity and Income Fund invests in medium - and lower - quality
debt securities that have higher
yield potential but present greater investment and credit risk than higher - quality
securities, which may result in greater share price volatility.
Still, we've observed diminishing returns from the Fed's interventions, there is no political tolerance for the Fed to intervene in
securities involving any credit risk that would be borne by U.S. citizens (purchasing European sovereign
debt, for example), and the
yield on the 10 - year Treasury bond is already down to 1.7 %, which is far below where it stood when prior interventions were initiated.
Selling of Treasury
securities by holders of mortgage - related
debt, in order to hedge their increasing interest - rate risk, remained a factor exerting upward pressure on
yields.
Before founding Third Point, Daniel worked in the
securities industry for over a decade, gaining dedicated experience in equities, distressed
debt, high -
yield bond sales, risk arbitrage and private investments.
High -
yield debt in both the US and international bond ETFs also got a boost after
yield - seeking investors moved longer on the
yield curve and into riskier
debt securities to achieve better returns on their investment capital.
Non-investment-grade
debt securities (high -
yield / junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher rated
securities.
The Bloomberg Barclays US Corporate High -
Yield Bond Index is an unmanaged broad - based market - value - weighted index that tracks the total return performance of non-investment grade, fixed - rate, publicly placed, dollar denominated and nonconvertible
debt registered with the
Securities and Exchange Commission.
It is a multi-asset fund but it is largely unconstrained: it targets US and international income - producing
securities including common stock, high -
yield and investment grade
debt, preferred shares and convertibles, and a variety of hedges including gold, precious metals, currency forward contracts, and inflation - linked vehicles.
Look at the
yield on juniormost
debt security of the firm, the cost of equity is higher than that.
The index will rank U.S. Treasuries, U.S. investment grade corporate bonds, U.S. investment grade mortgage backed
securities, U.S. high
yield debt and U.S. dollar denominated
debt of emerging market issuer according to their momentum / trend scores.
High -
yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated
debt securities.
Many people realize that rising interest rates affect
yields and prices, but what others might not know is that if you stick closely to short - term, investment - grade
debt securities - the very kind our Near - Term Tax Free Fund (NEARX) invests in - the impact of such a rate hike is not as dramatic as some investors might think.
The Fund may engage in active and frequent trading of portfolio
securities to achieve its investment objective... the Fund will invest in a portfolio of
securities including: equities,
debt, warrants, distressed, high -
yield, convertible, preferred, when - issued... options, total return swaps, credit default swaps, credit default indexes, currency forwards, and futures... ETFs, ETNs and commodities.»
Val Petrov, PhD, CFA, As a portfolio manager on the Mortgage - Backed
Securities team, Val concentrates on development and implementation of relative value models across
yield curves (Agency
Debt, Treasuries, Swaps) and Mortgage - Backed
Securities (MBS) products.
Although the bond market is also volatile, lower - quality
debt securities including leveraged loans generally offer higher
yields compared to investment grade
securities, but also involve greater risk of default or price changes.
The fund invests in municipal and other
debt securities with an emphasis on high -
yield securities.
These funds invest across a diverse range of fixed income sectors, including high
yield securities, U.S. Government and investment - grade
securities, emerging market
securities and foreign developed market
debt.
Higher
yields: Most of the
debt issued under this category is below investment - grade, thus the
securities have higher than comparable investment grade instruments.
A traditional multi-asset portfolio investing in a selection Growth (typically shares and property
securities), Diversifying (typically higher
yielding debt and alternatives) and Defensive (typically investment grade
debt securities and cash) assets.
The downgrade could add up to 0.7 of a percentage point to Treasuries»
yields over time, increasing funding costs for public
debt by some $ 100 billion, according to SIFMA, a U.S.
securities industry trade group.
For this reason, GSE
debt obligations often carry a
yield premium over Treasury
securities with comparable maturities.
Reason why I like it: the markets they operate in (
security, automotive) hereby already having a strong patent portofio, high operating margins (66 %), no
debt, a current
yield of 2.20 %, regular special dividends, a low P / E of 9.5 and the DCF calculations suggest a fair value of approx.
For instance, historically, you could have notched surprisingly good results by favoring
securities characterized by lower price volatility, higher
yields and higher quality (as reflected in, say, higher gross profitability or lower
debt).
Non-investment-grade
debt securities (high -
yield / junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher - rated
securities.
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.