Sentences with phrase «yield securities rated»

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.

Not exact matches

The yield curve is the span of rates across the range of Treasury securities of different durations.

If you plan to hold to maturity you have to be willing to forego the possibility of higher yields assuming rates rise, but then again you don't get dinged on the lower price of the security.

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.

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.

The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund's past dividends paid to shareholders.

Franklin Limited Duration Income (FTF) is a closed end fund that seeks high current income and capital appreciation through investment in high yield corporate bonds, floating rate bank loans and mortgage and other asset backed securities.

Japan's recession left little demand at home, so its banks developed the carry trade: lending at a low interest rate to arbitrageurs to buy higher - yielding securities.

Today's exceptional demand is mainly the result of heightened bank liquidity needs combined with the Fed's practice of setting the IOER rate above the yield on Treasury securities, and on short - term securities especially.

Moreover, if these extremely defensive and rate - protected securities drop slightly in price, it almost assuredly means that other corporate yield securities have been clocked, creating a stellar buying opportunity.

In the second step, the model estimates the appropriate discount rate for the security, which in the case of RMBS is expressed as a trading margin — the difference between the yield on the RMBS and the Australian dollar swap rate for the tenor corresponding to the WAL of the RMBS.

Another approach to analyzing the 10 - Year Treasury Note rate is to decompose it into its real yield, taken from the rate on 10 - Year Treasury Inflation Protected Securities (TIPS), and inflation compensation, the residential between the 10 - Year Treasury Note rate and the 10 - Year TIPS.

The strong outperformance of credit - related securities and progressive trend in interest rates has emboldened many investors to bulk up on high yield funds over the course of this bull market.

The current low interest rate environment globally has pushed the majority of fixed income securities to record - low yield levels across the board.

Securities are classified as high - yield if the middle rating of Moody's, Fitch, and S&P is Ba1 / BB + / BB = or below.

However, yields on longer - term securities could be trending down sometimes when market interest rates are set to get lower for a foreseeable future to accommodate ongoing weak economic activities.

High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.

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.

When the economy is heading to a recession, knowing interest rates are to trend lower, investors are more willing to invest in longer - term securities immediately to lock in current higher yields.

Although inflation compensation, which has returned as an accurate measure of inflation expectations, plays a key role in the recent rise in longer - term rates, an earlier post illustrated that the primary reason for the longer decline in the 10 - Year Treasury note rate is the real, or inflation - adjusted, yield, as measured by the rate on 10 - Year Treasury Inflated Protected Securities.

Finally, since October 2008, the Fed has been paying interest on bank reserves, at rates generally exceeding the yield on Treasury securities, thereby giving them reason to favor cash reserves over government securities for all their liquidity needs.

If the ratio is at 100 %, it indicates that the yield on a AAA - rated municipal bond is the same as a Treasury security of the same maturity.

As we pointed out in our post last week, a withdrawal rate strategy should respond to market factors like equity valuations and bond yields as well as personal factors like age, retirement horizon, and expectations about pension and Social Security benefits.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

Quantitative easing is a process via which the Fed purchases mortgage - backed securities (MBS) and other bonds in the open market in order to lower bonds yields and everyday mortgage rates.

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.

This is not unlike the dilemma facing many retirees and other individual investors: holding ultra-safe interest - bearing investments is wise past a certain age; yet when yields are lower than the inflation rate, this strategy erodes buying power and undermines long - term financial security.

Investments in utility company securities, if purchased for dividend yield, involve additional interest rate risks.

Short - term security yields in the money market moved down generally in line with the cash rate as policy was eased.

The managers consider security selection within sectors, relative sector performance, yield curve shape, and interest rate moves.

High yields reflect the higher credit risk associated with these lower - rated securities and, in some cases, the lower market prices for these instruments.

Concern over future food and nutritional security is rapidly rising on the global agenda amidst studies showing crop yields are far from increasing at the rates needed to meet projected demands for 2050.

Fixed income sectors shown to the right are provided by Barclays and are represented by the following Bloomberg Barclays Indices — Treasury Inflation Protected Securities: U.S. Treasury Inflation - Protected Securities (TIPS) Index; Floating Rate Loans: US Floating - Rate Note Index (BBB); Asset - backed securities: US Asset - Backed Securities Index; High Yield: US Corporate High - Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US CorporSecurities: U.S. Treasury Inflation - Protected Securities (TIPS) Index; Floating Rate Loans: US Floating - Rate Note Index (BBB); Asset - backed securities: US Asset - Backed Securities Index; High Yield: US Corporate High - Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US CorporSecurities (TIPS) Index; Floating Rate Loans: US Floating - Rate Note Index (BBB); Asset - backed securities: US Asset - Backed Securities Index; High Yield: US Corporate High - Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporsecurities: US Asset - Backed Securities Index; High Yield: US Corporate High - Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US CorporSecurities Index; High Yield: US Corporate High - Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporsecurities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporates Index

Think of it this way — if a bond is externally rated as BBB, and my firm's internal credit rating team deems it to be AA, then we are simultaneously purchasing the safety and security of a AA bond while also benefiting from the yield of a BBB bond.

High - yield bonds (also known as «junk bonds») may be subject to greater levels of interest rate, credit, and liquidity risk than investments in higher rated securities.

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.

And if you look at a common gauge of future inflation expectations — the difference between the yield on long - term Treasury bonds and that of Treasury Inflation - Protected Securities, now about 1.8 to two percentage points — investors apparently believe inflation will continue to mosey along at a relatively sluggish rate well into the future.

Using yields derived from the Treasury Inflation Protected Securities (TIPS) market over the past 20 years, equity multiples have been positively correlated with real long - term interest rates.

Demand for yield combined with the benefits of floating rate interest payments and better security provisions than fixed rate junk bonds all helps to draw attention to this asset class.

It is common practice in the financial industry to use basis points to denote a rate change in a financial instrument, or the difference (spread) between two interest rates, including the yields of fixed - income securities.

Normal U.S. Treasury securities do not initially take inflation into account, so the yield must compensate investors for future inflation in addition to the interest rate.

Worse, the market has panicked, and the security you bought with a 6.5 % yield is now getting discounted at a mid-teens interest rate.

I think the reason I wrote it out 10 + years ago was my objection to interest only securities that received high ratings, despite the possibility of a negative book yield if prepayments accelerated, and they were rated AAA, and could be used as reserve assets with minimal capital charges.

One of the oldest tricks in the game is to offer a high current yield, where the yield can get curtailed through early prepayment (typically in low interest rate environments), or some negative event that forces the security to change its form, such as when a stock price falls with reverse convertibles.

But most of the assets that were harmed were owned by corporations, who had investment professionals that chose auction rate preferred securities because they yielded significantly more than money market funds, but with seemingly little risk, and the system worked for around 20 years.

If prospects are looking worse, no matter what the Fed does to short high - quality rates, junk grade securities will tend to rise in yield.

I once was a mortgage bond manager, and I bought senior securities because the yield spreads on the lower - rated securities were so small.

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