Sentences with phrase «yield on a bond investment»

Not exact matches

With the Fed actively buying securities on the open market, the additional demand means bond issuers can promise lower yields and still attract investment.

With bond yields globally in the dumps, Singapore's wealth fund GIC is looking at unconventional sources for fixed income returns, Liew Tzu Mi, GIC's chief investment officer for fixed income, said on Thursday.

During times of recession the economy is stimulated with low interest rates and once they get low enough, the yield on bonds and other fixed investments becomes so unattractive that money starts to flow into equities.

This leaves us roughly in the same position that we started the year, slightly overweight to spread product, i.e., investment - grade and high - yield corporate bonds and emerging markets (more recently, we also went back to a slight overweight on commercial mortgage - backed securities).

We trade all fixed income assets, with a focus on more illiquid situations, from high yield, distressed and investment grade bonds and convertible bonds to public and private corporate securities and leveraged loans.

With my personal investment return goal of 3X the risk - free rate of return (10 - year bond yield), anything above 6 % looks attractive, depending on risk.

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.

Last week, spreads on the Morningstar Corporate Bond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higBond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higbond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higher.

The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the iShares Core U.S. Aggregate Bond ETF (AGG) all made an appearance on the outflows list.

Central bank purchases, investor yield - seeking and safe - haven flows have driven down yields on government and investment grade corporate bonds.

Our Investment Strategy Report published on March 19 compared equity and bond yields over multiple business cycles and found that the 10 - year Treasury yield might have to sustain levels exceeding 3.5 % (far above what we believe is likely this year) before compelling a year - end 2018 S&P 500 Index target range below our current year - end target of 2800 - 2900.2

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

How could one argue otherwise on the bond side with investment grade bonds yielding only 1.75 %?

The average investment - grade (high - yield) bond trades on less than 32 % (36 %) of days over the prior six months — liquidity in corporate bonds was considerably lower than in traditional listed equity markets.

Income - producing investment ideas you can act on, from bond funds to high - yield stocks - includes the Motley Fool Options service

For example, investors might use the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) to gain access to greater credit risk through an ETF focused on bonds rated BB and B, and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) to gain access to less credit risk through an ETF focused on bonds rated A and BBB.

While yields on government bonds remain unattractive, according to Stopford, investment - grade corporate bonds offer a modest pickup in yield — and high - yield bonds, a more significant advantage.

And on the list of possible investments are also high yield corporate bonds and, perhaps, some emerging market sovereign bonds.

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.

With the exception of the very front end of the yield curve, Canadian government bond yields declined, as did spreads on investment grade corporate bonds.

Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).

Matt Tucker breaks down the basics for bond investors, focusing on the definition of «yield» and how it applies to an investment's present value.

You may also be interested in considering High Yield Bond ETFs High Yield Real Estate Investment Trusts (REITs) High Yield Closed End Funds High Yield Utility Stock ETFs Return from High Yield ETFs to More on High Yield Passive Income

Yet we believe another milestone is of far greater significance to investors: Yields on short - term U.S. investment grade (IG) corporate bonds also hit 3 % — an eight - year high.

As seen in prior cycles, changes in short - term interest rates alone had yielded little effect on financial conditions, as buoyant risk sentiment strengthened equities, corporate bonds, as well as various forms of «esoteric» investments.

Depending on your risk tolerance and familiarity with individual corporations, now could be an opportune time to consider high yielding corporate bonds as part of your investment portfolio.

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

Issuance of investment - grade corporate bonds picked up in early March in a receptive market, as investors sought higher yields than were available on safe - haven Treasury bonds.

The Deutsche X-trackers Emerging Markets Bond Interest Rate Hedged ETF (EMIH), the Deutsche X-trackers Investment Grade Bond Interest Rate Hedged ETF (IGIH) and the Deutsche X-trackers High Yield Corporate Bond - Interest Rate Hedged ETF (HYIH) will begin trading on the Bats exchange on June 9.

Today three Deutsche Bank ETFs — the Deutsche X-trackers Emerging Markets Bond Interest Rate Hedged ETF (EMIH), the Deutsche X-trackers Investment Grade Bond Interest Rate Hedged ETF (IGIH) and the Deutsche X-trackers High Yield Corporate Bond - Interest Rate Hedged ETF (HYIH)-- delisted from the NYSE Arca exchange and listed on Bats» BZX Exchange.

Depending on where the stock market and bond market are at the time, I'd like to deploy $ 300,000 of the proceeds in low risk investments that have a high chance of producing a 4 % gross yield.

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.

Investment grade bonds as measured by the S&P U.S. Issued Investment Grade Corporate Bond Index turned it up a notch as the index's yield tightened by 9 basis points on the week to a 2.76 %.

Investment Grade Corporate and all other type of bonds are ranked based on their AUM - weighted average dividend yield for all the U.S. - listed ETFs that are classified by ETFdb.com as being mostly exposed to those respective bonds.

Bond power rankings are rankings between Investment Grade Corporate and all other U.S. - listed bond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average dividend yieBond power rankings are rankings between Investment Grade Corporate and all other U.S. - listed bond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average divideInvestment Grade Corporate and all other U.S. - listed bond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average dividend yiebond ETFs on certain investment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average divideinvestment - related metrics, including 3 - month fund flows, 3 - month return, AUM, average ETF expenses and average dividend yields.

Unlike Treasuries and investment grade corporates, the high yield market as measured by the S&P U.S. Issued High Yield Corporate Bond Index touch a low point for yield earlier in the month at a 5.87 % on Octoberyield market as measured by the S&P U.S. Issued High Yield Corporate Bond Index touch a low point for yield earlier in the month at a 5.87 % on OctoberYield Corporate Bond Index touch a low point for yield earlier in the month at a 5.87 % on Octoberyield earlier in the month at a 5.87 % on October 6th.

With bond yields being depressed for so many years (and still extremely low by any historical standard) investors have scoured the globe for yield, which has pushed the yields on many traditional income investments — namely, bonds and dividend stocks — to levels far too low to be taken seriously.

But with the yield on long low - investment grade bonds hovering above 5 %, I can tell you with certainty as a life actuary that the life companies are not providing a 7 % return to retirees — it is far, far less, more like 4 %, or maybe less.

It's important to compare investments on an after - tax basis: you might appreciate the guaranteed yield of government bonds, but on an after - tax basis, you'll likely do better over the long - term with dividend stocks.

This, he suggested, means he's looking elsewhere for decent returns on his firm's huge fixed - income investments, as U.S. government bond yields look set to continue to wallow at historic depths.

These types of low - rated bonds are the same as the high - yielding and speculative bonds, because they carry the highest risk and can bring the highest return on investment, if they are paid back at maturity.

Just as a bond's price can fluctuate, so can its yield — its overall percentage rate of return on your investment at any given time.

On October 1, 2014, SunAmerica High Yield Bond Fund (SHNAX) becomes SunAmerica Flexible Credit Fund, and that simultaneously make «certain changes to their principal investment strategy and techniques.»

Yield: Investment grade tax - exempt municipal bonds on average are yielding 2.03 % vs. higher yielding taxable investment grade corporInvestment grade tax - exempt municipal bonds on average are yielding 2.03 % vs. higher yielding taxable investment grade corporinvestment grade corporate bonds.

The sectors covered by the active ETFs are Canadian Dividend, U.S. Dividend, Global Dividend, Preferred Shares and Crossover Bonds (those on the line between investment grade and high - yield).

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.

So if you had taken the advice of the bond doomsayers, say, five years ago and fled to cash to wait things out until bond yields ticked up, you would have likely earned well below 1 % annually on your money vs. an annualized 4 % or so in a broadly diversified investment - grade intermediate - term bond fund.

Quantitative Easing (QE) raised the price and lowered the yields on intermediate and long term bonds in an effort to spur business investment and encourage consumer spending on big ticket items.

Over the (very) long run, equities out - perform bonds and cash, as is evident below, but may not be practical alternative to bonds for many investors, because of investment horizon, risk - tolerance, dependence on yield, or all the above.

«If 10 - year yields are moving north of 5.30 percent and making a new high yield for the cycle, you might argue you were in a bear market,» said Richard Gilhooly, senior U.S. bond strategist of BNP Paribas Securities Corp., speaking at the Reuters Investment Outlook Summit on Tuesday.