Sentences with phrase «yield than corporate bonds»

If an investor is in this bracket, muni bonds offer a much higher tax - equivalent yield than corporate bonds, 3.5 % compared to 2.8 %.

However, looking at it from the perspective of Taxable Equivalent Yield (TEY) municipal bonds are currently at higher yields than their corporate bond equivalents.

The retail investors are less diversified and more risk - averse, requiring a higher yield than corporate bond investors.

Not exact matches

So, it is a very different market than it was 10 years ago, and you're going to see a lot of corporate bond issuance as these infrastructure projects go out there, and you can capture some pretty good yields and you know what you're buying because it's a corporate bond.

Serge Pepin, the head of BMO Investments, says people should consider corporate or high - yield bonds — also known as junk bonds — which pay higher yields than federal issues.

The SPDR Barclays High Yield Bond fund gathered more than $ 1.1 billion, or about half its total for the year, while the iShares iBoxx $ High Yield Corporate Bond took in $ 603 million, pulling it out of negative territory for the full year.

Traders have pulled more than $ 1.8 billion from two junk - focused ETFs just in the past week: the iShares iBoxx $ High Yield Corporate Bond -LRB-- $ 1.06 billion, most of any ETF) and the SPDR Barclays High Yield Bond -LRB--765.4 million, the second most), while also redeeming $ 577.4 million (the fourth most) from the iShares iBoxx Investment Grade Bond ETF, according to FactSet and ETF.com.

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.

On average, high - quality corporate bonds currently have yields that are at least one percentage point higher than Treasury 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.

While spreads between yields on highly - rated corporate bonds and government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate credit quality.

Consistent with this, spreads between corporate bond yields and swap rates have moved much more in line with CDS than have spreads between corporate bonds and CGS.

For example, one source found that, on average, high - yield corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares eachyield corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares eachYield Corporate Bond ETF (HYG) trades millions of shares Corporate Bond ETF (HYG) trades millions of shares each day.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

It's also interesting to examine the changing significance and dynamics of the European bond market in general, which has almost doubled in size since 2005 to more than $ 10 trillion today, including government, investment - grade corporate debt and high yield.

However, munis may pay lower yields than Treasury or corporate bonds of similar maturity and quality, and are subject to the same rate risks as other bonds.

This is a lot higher than the average savings account or riskier corporate bond yields.

Roughly half of the ETFs have a higher correlation to treasury bonds and the other half to the S&P 500 Index (i.e., CWB — convertible bonds, JNK — high yield corporate, PFF — preferred stock and XLU — utilities all react to interest rates but are more correlated to the stock market than to treasury 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 earnings yield is greater than or equal to twice the average AAA corporate bond rate (alternatively, the price - earnings ratio is less than or equal to one - half of [100 ÷ the average AAA corporate bond rate]-RRB-

The S&P 500 High Yield Corporate Bond Index tracks the junk bonds of issuers of the S&P 500 and as the yields indicate, on average, they tend to be better quality than the bonds in the broader index.

Those that invest in non-senior loan tranches get an enhanced yield, but they face a different risk profile than most corporate bond investors.

In corporate bonds, high yields often signal danger rather than a bargain.

While high quality ratings often imply lower yields, the S&P International Corporate Bond Index has a weighted average yield - to - worst of 2.16 %, which is higher than the average yields of U.S. treasuries and comparable to the 2.26 % yield of the S&P 500 AAA Investment Corporate Bond Index.

Yields are also higher for the S&P U.S. Issued High Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporCorporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate yield corporatecorporate debt.

At that point the 3 % municipal bond has a taxable equivalent yield of 4.62 %, slightly higher than the corporate bond.

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.

Mortgage bond yields tend to be lower than corporate bond yields, as the securitization of mortgages makes such bonds safer investments.

In this example, corporate bonds are yielding 2.8 %, which on the surface is much higher than national munis.

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

However, because of this inherent safety, the average mortgage bond tends to yield a lower rate of return than traditional corporate bonds that are backed only by the corporation's promise and ability to pay.

The $ 102,000 investment in a four - year college yields a rate of return of 15.2 percent per year — more than double the average return over the last 60 years experienced in the stock market (6.8 percent), and more than five times the return to investments in corporate bonds (2.9 percent), gold (2.3 percent), long - term government bonds (2.2 percent), or housing (0.4 percent).

When risk - free and AAA - rated corporate bonds yield less than 4 %, 3.5 % yield on utilities and 6 % yields from junk ETFs are difficult to pass up.

We love high yield corporate bonds; they pay a lot more interest than treasuries and also because these are not the greatest borrowers — I'm not talking little companies; think CitiBank and other very big companies that don't have a pristine credit rating — they can not lend money out very long so the maturities of our high yield bond fund is closer in.

Rather than pursue cross-over corporates or high - yield or even long - term investment grade corporates, we have stayed near the middle of the curve with funds like: (1) SPDR Nuveen Muni (TFI), (2) Vanguard Total Bond (BND), (3) iShares 7 - 10 Year Treasury (IEF) and (4) iShares 3 - 7 Year Treasury (IEI).

The past week's news affected the S&P U.S. Investment Grade Corporate Bond Index similarly, as the yield - to - worst closed before the holiday at 3.19 %, 3 bps lower than the previous Friday's 3.22 %.

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

However, munis may pay lower yields than Treasury or corporate bonds of similar maturity and quality, and are subject to the same rate risks as other bonds.

These bonds are already in the S&P U.S. Issued High Yield Corporate Bond Index because of their Moody's rating of Ba1 and account for less than 1 % of the index's market value.

IGHG and HYHG do not attempt to mitigate factors other than rising Treasury interest rates that impact the price and yield of corporate bonds, such as changes to the market's perceived underlying credit risk of the corporate entity.

The Fund's high - yield bond holdings have historically produced higher income and lower correlation to interest - rate movements than higher - quality corporate bonds.

With the 20 - year AAA corporate bond and 30 - year Treasury bond yields rising, they'll become increasingly better than stock dividend yields.

For example, one source found that, on average, high - yield corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares eachyield corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares eachYield Corporate Bond ETF (HYG) trades millions of shares Corporate Bond ETF (HYG) trades millions of shares each day.

Government bonds, such as US Treasuries, and investment grade corporate bonds have performed far worse when yields have been rising than when they have been falling.

With a yield over 7 %, the S&P U.S. Preferred Stock Index reflects a yield of over 120bps higher than U.S. high yield bonds as tracked by the S&P U.S. Issued High Yield Corporate Bond Iyield over 7 %, the S&P U.S. Preferred Stock Index reflects a yield of over 120bps higher than U.S. high yield bonds as tracked by the S&P U.S. Issued High Yield Corporate Bond Iyield of over 120bps higher than U.S. high yield bonds as tracked by the S&P U.S. Issued High Yield Corporate Bond Iyield bonds as tracked by the S&P U.S. Issued High Yield Corporate Bond IYield Corporate Bond Index.

Average yields on investment - grade corporate bonds have risen just 2 basis points this month to 96 basis points more than Treasuries, while junk bond yields are up just 7 basis points to 253 basis points over Treasuries, according to Merrill Lynch data.

In other words, it's not clear that this fund is a better or worse diversifier than a high - yield corporate bond fund for a typical U.S. investor.

Improving High - Yield Bond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfoYield Bond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolBond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfoyield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolbond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolios.

Premium refers to a price above the par value (price at maturity) and the interest rate is lower than the coupon of the bond at par.E.g.: Company ABC Corporate 2015 6.50 trading at $ 105 (6.20 % yield).

With a portfolio composed of investment - grade debt from corporate, sovereign and supranational issuers with three - year maximum maturities, the iShares 1 - 3 Year Credit Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield than comparable all - Treasury funds, but it does have a marginally higher credit risk.