Sentences with phrase «yielding portfolio credit»

The second was the introduction of several high - yielding portfolio credit - linked notes that were targeted at retail investors.

Not exact matches

However, rates have retreated from over 8 percent in the last several weeks, and the credit risk of high - yield bonds can offer some diversification from the interest - rate risk of a portfolio of Treasury bonds.

Cannon figures that the average credit quality of a the big banks lending portfolio probably falls halfway between high - yield debt and investment grade.

Its underlying index selects and weights its bonds by market value, and this method yields a portfolio that aligns well with our benchmark in terms of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.

While I would expect downward pressure on Treasury yields in the event of fresh credit strains, we are not inclined to increase our portfolio duration until (unless) we observe a spike in the 10 - year yield toward 4 % or higher.

You may search for and purchase high yield bonds at Fidelity.com, where you can choose the credit rating levels appropriate for your portfolio and risk tolerance.

The High Yield Dividend Newsletter portfolio seeks to find some of the highest - yielding stocks supported by strong credit profiles and solid business models, but not always robust traditional free cash flow.

Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.

So while low and negative interest rates across the globe has inspired flows into stocks, emerging market bonds and corporate credit in search of higher yields, keep in mind the high correlations of these assets to oil prices and the advantages of holding actual diversifiers in your portfolio to smooth the ride.

He joined Leith Wheeler from TD Bank in January 2009, where he'd spent the previous 10 years trading a proprietary bank portfolio of credit default swaps, investment grade and high yield bonds for TD in New York and London.

Tags: 5 Top Dividend Stocks, AEP, American Electric Power Company, AT&T, Bear Markets, Bull Market, Cincinnati Financial Corporation, CINF, Consistent Dividends, Consumer Staples, Diversified Portfolio, Dividend, Dividend Payout Ratio, Dividend Stocks, Dividend Yield, Dot Com Crash, Eli Lilly, Financial Credit Crisis, Financials, Healthcare, Interest Rates, Investors, LLY, Non-Dividend, PPL, PPL Corporation, Sector Investing, Stock Market Crashes, Suspended Dividend Payments, T, Tobacco, Top 100 Dividend Paying Stocks, Utilities

Bond exchange - traded funds (ETFs) and mutual funds are generally yielding in the 2 % range for lower risk options, while higher yields can be earned from less credit - worthy bond portfolios.

«The high - yield market is pricing in pretty high expectations for credit quality,» says Bob Gorman, portfolio strategist at TD Wealth.

The fund has invested almost 80 % in AAA rated bonds while the rest of the portfolio is invested in AA rated bonds which may increase the yield without taking much credit risk.

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.»

I'd estimate the current portfolio dividend yield at about 2 % fully franked, so you might get 50bps to 1 % of franking credits a year on the current holdings.

It is invested primarily in the credit market, not so much in government bonds because government bond yields are so low, but we're looking for absolute returns even if interest rates go up, so some of the portfolio, a significant piece of it actually, is floating rate, so if interest rates go up, you just get higher cash flows, which will support higher returns, and the rest of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.

In addition, these funds must invest primarily in investment - grade fixed - income securities, such that the average credit quality of the portfolio as a whole is investment grade (BBB or equivalent rating or higher) and not more than 25 % of the portfolio's holdings are invested in high yield fixed income securities.

Therefore, Cerulli says, within the context of high - quality fixed - income portfolios, insurers will «generally try to add credit risk on the margin, taking advantage of an individual credit falling a notch or two either within the investment - grade universe, or into the upper reaches of high - yield / non-investment-grade spectrum.»

The yield of a global portfolio is about as low as its ever been from a cyclically adjusted P / E, credit spread, and nominal interest rate standpoint, while the global economy is more likely to be in the later (than early) stages of the business cycle.

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 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 portfolios.

For investors willing to accept an incrementally higher level of credit risk with a portfolio of one - to three - year investment - grade bonds, CSJ offers a yield advantage of 56 basis points over SHY.

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 creditCredit Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield than comparable all - Treasury funds, but it does have a marginally higher creditcredit risk.

In the construction of the S&P U.S. High Yield Low Volatility Corporate Bond Index, an individual bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation 1).

The two corporate bond ETFs might appeal to fixed - income investors who want a little more yield in exchange for credit and interest rate risk but personally, I prefer to take risk with the equity portion of the portfolio especially since corporate bonds are highly correlated with stocks.

Filed Under: Investing Tagged With: Bond, Bond Fund, Bond Funds Performance, Bond Portfolio, Yield To Maturity Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

I definitely agree that getting rid of 6 % debt is the functional equivalent of getting a 6 % return and paying off the credit card, at that interest rate, beats the yield I'm getting in my portfolio.

We also employ sector, credit, and yield curve analysis designed to benefit portfolios from rate shifts and spread changes without resorting to excessive swapping to capture tiny price fluctuations.

But then we have shorts and are positioned more yield - sensitive and are generally less credit - sensitive than most balanced portfolios.

The Arrow Dynamic Income Fund's returns are derived from three core portfolio strategies across distinct market segments: high yield, credit default, and long — term bonds.

Institutional investors aren't selling their bond funds carrying more credit risk, according to Monaghan, who runs high - yield bond portfolios for pension funds, endowments and foundations.

Kyle is a Vice President of SSGA and a Portfolio Manager in the Fixed Income Beta Solutions group where he manages high yield and investment grade credit ETFs and separate accounts.

For example, investors or portfolio managers dissatisfied with low returns may reach for yield by taking on more credit risk, duration risk, or leverage.