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How Are Bonds Rated?
 
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When investing in bonds, it may be beneficial to consider bond ratings. Learn about the three main ratings agencies and how they evaluate bond issuers. Questions or Comments? Have a question or topic you’d like to learn more about? Let us know: Twitter: @ZionsDirectTV Facebook: www.facebook.com/zionsdirect Or leave a comment on one of our videos. Open an Account: Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com Bid in our Auctions: Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com
Views: 15855 Zions TV
How Bond Ratings Work
 
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Trade bonds free for 60 days using TD Ameritrade: http://bit.ly/td-ameritrade Join us in the discussion on InformedTrades: http://www.informedtrades.com/2005065-intro-bond-ratings-how-use-them.html KEY POINTS 1. Bond ratings are a way to assess the default risk of a bond. Default risk is the risk that the bond issuer will not be able to pay back the full coupon and principal obligations of the bond they issued. 2. There are three agencies that collectively account for 90% of the market for credit ratings: Standard & Poor's, Moody's, and Fitch Ratings. Of the three, S&P and Moody's account for 40% each; Fitch is a minority player whose primarily role is to serve as the tie-breaker of sorts when S&P and Moody's issue conflicting ratings. 3. A bond is considered investment grade or IG if its credit rating is BBB- or higher by Standard & Poor's or Baa3 or higher by Moody's. Generally they are bonds that are judged by the rating agency as likely enough to meet payment obligations that banks are allowed to invest in them. A bond's yield is typically inversely related to its rating; in other words, bonds with lower ratings have higher yields. 4. Bond rating agencies have come under considerable criticism in the years since the financial crisis of 2008. Agencies collectively failed to identify credit securities that were at high default risk, and have been sued for their actions. That agencies derive their revenue from governments and corporations that pay them for ratings has also led many to question their integrity and objectivity. 5. In spite of the increase in skepticism regarding the objectivity and competence of the credit ratings agencies, changes in bond ratings can and do impact bond prices, often considerably. As such, investors may wish to factor in ratings into their analysis and portfolio decisions using bond screeners.
Views: 2461 InformedTrades
Investment Grade Bonds
 
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One asset class we use to help us manage risk is Investment-Grade Bonds. Bonds are debt instruments requiring borrowers to make periodic interest and principle payments over the life of the bond. Learn more about this asset class.
Views: 95 TCDRSChannel
Definition Of Investment Grade Bonds ✔ Stock Market
 
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Views: 1183 Larry
Bond Ratings | Corporate Finance | CPA Exam BEC | CMA Exam | Chp 7 p 3
 
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Firms frequently pay to have their debt rated. The two leading bond-rating firms are Moody’s and Standard & Poor’s (S&P). The debt ratings are an assessment of the creditworthiness of the corporate issuer. The definitions of creditworthiness used by Moody’s and S&P are based on how likely the firm is to default and the protection creditors have in the event of a default. It is important to recognize that bond ratings are concerned only with the possibility of default. Earlier, we discussed interest rate risk, which we defined as the risk of a change in the value of a bond resulting from a change in interest rates. Bond ratings do not address this issue. As a result, the price of a highly rated bond can still be quite volatile. The highest rating a firm’s debt can have is AAA or Aaa, and such debt is judged to be the best quality and to have the lowest degree of risk. For example, the 100-year BellSouth issue we discussed earlier was rated AAA. This rating is not awarded very often: As of 2014, only four nonfinancial U.S. companies had AAA ratings. AA or Aa ratings indicate very good quality debt and are much more common. A large part of corporate borrowing takes the form of low-grade, or “junk,” bonds. If these low-grade corporate bonds are rated at all, they are rated below investment grade by the major rating agencies. Investment-grade bonds are bonds rated at least BBB by S&P or Baa by Moody’s. Rating agencies don’t always agree. To illustrate, some bonds are known as “crossover” or “5B” bonds. The reason is that they are rated triple-B (or Baa) by one rating agency and double-B (or Ba) by another, a “split rating.” For example, in March 2014, real estate investment company Omega Healthcare Investors sold an issue of 10-year notes rated BBB– by S&P and Ba1 by Moody’s. A bond’s credit rating can change as the issuer’s financial strength improves or deteriorates. For example, in January 2014, Moody’s cut the bond rating on PlayStation 4 manufacturer Sony from Baa3 to Ba1, lowering the company’s bond rating from investment grade to junk bond status. Bonds that drop into junk territory like this are called fallen angels. Although sales of the new PS4 were a positive factor noted by Moody’s, the rating agency felt that the majority of Sony’s core business such as TVs, mobile phones, digital cameras, and personal computers faced difficult times ahead. Credit ratings are important because defaults really do occur, and when they do, investors can lose heavily. For example, in 2000, AmeriServe Food Distribution, Inc., which supplied restaurants such as Burger King with everything from burgers to giveaway toys, defaulted on $200 million in junk bonds. After the default, the bonds traded at just 18 cents on the dollar, leaving investors with a loss of more than $160 million. Even worse in AmeriServe’s case, the bonds had been issued only four months earlier, thereby making AmeriServe an NCAA champion. Although that might be a good thing for a college basketball team such as the University of Kentucky Wildcats, in the bond market it means “No Coupon At All,” and it’s not a good thing for investors.
Default Risk and Bond Rating - Finance - What is the Definition - Financial Dictionary
 
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Although bonds normally promise a fixed flow of income, this does not mean that they are riskless investments. Although U.S. government bonds are treated as risk-free, this is not the case for corporate bonds. If a company goes bankrupt then the bondholders will not receive the payments that they have been promised and therefore there is some uncertainty surrounding future bond payments. This uncertainty is called default risk. The default risk is measured by Moody's Investors Services, Standard & Poor's Corporation, and Fitch Investors Service. All three of these entities provide financial information on firms as well as well as ratings on corporate and municipal bonds. Investment Grade Bonds Bonds that are rated BBB or above by Standard & Poor's, or Baa or above by Moody's are called investment grade bonds. Speculative Grade or Junk Bonds Bonds that are rated BB or lower by Standard and Poor's, Ba or lower by Moody's, or bonds that are unrated are considered junk bonds or speculative grade bonds. Bond rating agencies use financial ratios to grade bonds. The key ratios used are show below as follows Coverage ratios Leverage ratio Liquidity ratios Profitability ratios Cash flow-to-debt ratio https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=7a7b8v6Mz7A
Views: 1964 Subjectmoney
Ratings agency Moody's affirms investment grade credit
 
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Ratings agency Moody's affirmed South Africa's government bond long and short term ratings and assigned a negative outlook. The investment grade credit rating affirmation marks an end to the review period that started on 8 March 2016, when Moody's placed the country's ratings under review for possible downgrade. Moody's noted that South Africa is approaching a turning point after several years of falling growth and that the 2016/17 budget and medium term fiscal strategy, will likely stabilise and eventually reduce general government debt.
Views: 341 CGTN Africa
Ratings agency Moody's affirms investment grade credit
 
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Ratings agency Moody's affirmed South Africa's government bond long and short term ratings and assigned a negative outlook. The investment grade credit rating affirmation marks an end to the review period that started on 8 March 2016, when Moody's placed the country's ratings under review for possible downgrade. Moody's noted that South Africa is approaching a turning point after several years of falling growth and that the 2016/17 budget and medium term fiscal strategy, will likely stabilise and eventually reduce general government debt.
Views: 109 CGTN Africa
How to invest in bonds
 
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How to invest in bonds Bonds - funds vs. individual So now that we've looked at attributes of various bonds and other fixed income investments, let's see how you might go about actually investing in them. First, I'd recommend that you limit your fixed income investing to mutual funds, banks or insurance companies. With the exception of US Treasuries, buying individual bonds is generally not a good idea unless you have at least $50,000 to invest in a variety of bonds. Unless you have that much money to put into bonds, you'll lack the diversification necessary to reduce credit risk to a manageable level. Also, the secondary market in bonds for individuals is not very good, so you're better off sticking with mutual funds. You can, however, buy your own US Treasury bonds. You can buy them directly from the US government at little cost. But I'd stay away from US EE savings bonds. These offer poor yields and you can easily lose up to six months in interest if you aren't careful. EE Savings bonds have minor tax advantages, especially when it comes to paying for college, but the rules are complicated and limited to lower income people. Savings bonds just aren't great investments. Bond market is efficient - like a commodity If you decide to use a bond mutual fund for investing, remember that bond funds offer higher yields than banks, but the bond fund will complicate your taxes. See my tape on mutual funds for more information on fund taxation. Also, when investing in a bond fund, don't pay for a so-called hot manager who charges you high fees and justifies these fees by trying to beat the bond market. Bonds and other fixed income investments are largely commodity products. Consider, for example, the US Treasury market. The Treasury market is huge, and all the securities have the same, excellent credit rating. There's no reason to pay high fees for a US Treasury bond fund, yet some funds charge their investors over 2 percent in fees. These investors are simply wasting their money. With US Treasury bonds currently yielding about 7 percent, these investors are giving up almost a third of their income. They could just as easily shift to a US Treasury bond fund that has an expense ratio of only 0.3 percent. Watch out for temporary fee waivers However, especially with money market mutual funds, you need to be careful that the fund's current high yield isn't the product of a temporary fee waiver. To attract new investors, many funds waive their management fees for six months or so. This raises their reported yield, and new money pours in. After the fund has plenty of new investors, the fund raises its fees again back to its old levels. Maybe pay more for junk bond managers About the only time you might want to pay extra for a bond fund manager is in the area of junk bonds. Most investment grade bonds already are rated by independent rating agencies like Moody's or Standard & Poors, so it's doubtful that your bond fund manager can add value by picking out the good credit risks from the bad ones. But junk bond investing is trickier. Here it may pay to hire fund analysts who will dig deeply to discover a company's true ability to pay off its debt. In this case, it's more like trying to find a good stock. Still, you shouldn't pay more than 1 percent of assets to find a good junk bond fund. Copyright 1997 by David Luhman
Views: 318 MoneyHop.com
Chief Investment Officer Greg Davis on the 2018 bond outlook
 
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1/4/2018 Webcast: Our new leaders look ahead to 2018 Hear what the expectations are for bonds in today's market climate. Important information All investing is subject to risk, including possible loss of principal. Diversification does not ensure a profit or protect against a loss. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings. For more information about Vanguard funds, visit https://vgi.vg/2G1dTre to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. © 2018 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor of the Vanguard Funds.
Views: 5940 Vanguard
Session 07: Objective 3 - Bond Ratings (2016)
 
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The Finance Coach: Introduction to Corporate Finance with Greg Pierce Textbook: Fundamentals of Corporate Finance Ross, Westerfield, Jordan Chapter 7: Interest Rates and Bond Valuation Objective 3 - Key Concepts: Bond Ratings High Grade Bonds Low Grade Bonds Junk Bonds Risk More Information at: http://thefincoach.com/
Views: 1332 TheFinCoach
The U.S. Equities Rebound Hasn't Dampened Demand For Investment-Grade Bonds
 
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Although U.S. equities rebounded in February after a tough January, the reversal hasn't dampened investors' demand for investment-grade bonds. In this CreditMatters TV segment Standard & Poor's Director Nick Kraemer explains how equity and bond performance panned out last month.
JP Morgan Analyst Discusses REIT Debt Levels, Investment Grade Ratings
 
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Mark Streeter, managing director at JP Morgan Chase, joined REIT.com for a video interview during REITWise 2014: NAREIT's Law, Accounting and Finance Conference held in Boca Raton, Fla. Streeter was asked about appropriate debt levels for REITs and how the industry as a whole performs in this area. He noted that since the financial crisis, the REIT industry has been more focused on the metric of debt to earnings before interest, taxes, depreciation and amortization (EBITDA). "The debt-to-EBITDA metric is more comparable across sectors, and that's been driven in part by the desire by investors and the ratings agencies to really compare REITs to the broader market," Streeter said. He added that the right level of leverage is dependent on the asset class. "You really need to drill down to where the asset's valued on an equity basis" to determine the appropriate amount of leverage that the market valuation can support, Streeter said. Streeter also commented on the merits of obtaining an investment grade rating. "I think most of these REITs are focused on running now with investment grade credit ratings. We're up to 60 names that are actively issuing in the bond market right now and have pursued investment grade credit ratings, and there's still a pipeline of many more names that are looking to tap the market," Streeter observed. "Most REIT CFOs are very focused on having access to public and private capital, secured and unsecured, just like they're focused on having access to public and private equity... I think it's the most prudent strategy to have a rating," Streeter said. "We've seen many, many new names come to the market recently. There's been a whole host of new REITs to the market that have really benefitted from having that access and having that credit," he added. Streeter also said he is trying to keep investors focused on the fact that from a credit perspective, the REIT industry continues to perform well. "The bonds don't default. They're basically worth par. You have very protective covenants. It's a very unique asset class in the investment grade credit market," he pointed out. By Sarah Borchersen-Keto
Views: 372 Nareit1
PowerShares 1-5 Year Laddered Investment Grade Corporate Bond Index ETF (PSB)
 
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Bad timing can hurt bond performance. PowerShares laddered corporate bond ETFs help reduce reinvestment risk, with potentially higher yields than similarly rated government debt.
Views: 59 InvescoCanada
Credit risk in bonds
 
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Credit risk in bonds I've tried to emphasize interest rate risk when you invest in bonds because many people don't understand this risk even though it's probably the biggest risk facing today's bond investor. But almost everyone understands credit risk. Credit risk is the risk that the issuing company or government can't meet the promised interest or principal payments. US Treasuries face least credit risk In this case, US Treasury bonds and mortgage securities called Ginnie Maes offer the highest credit ratings. These securities are backed by the "full faith and credit" of the US government. Government agency securities After US Treasuries and Ginnie Maes come debt issued by quasi-governmental agencies like the Federal Home Loan Mortgage Corporation also known as Freddie Mac. Although debt issued by these corporations does not carry the explicit backing of the US government, most bond traders believe the government will back up the companies if their bankruptcy is threatened. Blue chip corporations Next comes the debt of large, blue chip corporations like General Electric. This debt is normally called investment grade debt. Debt issued by large corporations is normally rated by independent companies like Moody's, and Standard & Poors. These companies do extensive research into the issuing company's ability to repay their bonds. Hierarchy of claims Before we jump further down into junk bonds, we should spend a little time talking about the hierarchy of claims on a company's assets and see what happens if a company files or is forced into bankruptcy. According to the US Constitution, bankruptcy proceedings are handled by federal law. US bankruptcy laws were rewritten in 1978 to change the traditional pecking order of those who can make claims against a bankrupt company. Lawyers and the IRS are highest Highest on the pecking order is the bankruptcy lawyers. Lawyers write the laws, so it shouldn't be too surprising that they want to get paid for their efforts as they try to dole out the company's assets. Next comes the IRS, then the firm's employees and their pension funds. After them come the company's secured creditors. These creditors have loaned the company money, but the loan is secured by a mortgage on a piece of real property like a building or heavy equipment. Most blue chip debt is unsecured Although secured debt is common for smaller companies, the majority of blue chip corporate debt is unsecured debentures. Here the lender only has the promise that the firm will honor its debt. This is similar to unsecured credit card debt that most consumers carry. However, there are several levels of unsecured debt. So-called senior debt holders are paid off before junior or subordinated debt holders. Unsecured creditors also include the suppliers who provided the company with merchandise. After the junior debt holders come the preferred stockholders. Finally, if there's any money left, the common stockholders receive compensation for their ownership in the company. Chapter 11 and 7 bankruptcy There are two forms of corporate bankruptcy, named for sections in the federal law which govern their policies. One is Chapter 11, and this type appears in the news most often. In this case, the company continues operation, but it receives a temporary reprieve from its creditors while it works out a debt repayment plan. The second is Chapter 7. In this more extreme case, the company is liquidated and assets are sold off to satisfy creditors. A company can be forced into bankruptcy by its creditors if the company fails to meet its obligations. The company also voluntarily can choose to file for bankruptcy. Once in bankruptcy, a federal court plays a major role in the handling of claims. Typical bankruptcy reorganization Although it's difficult to generalize about bankruptcy proceedings, if a company files for bankruptcy, and then later re-emerges as an operating company, the old creditors and shareholders have their claims shifted down one level in the claims hierarchy. For example, the old senior debt holders become junior creditors, the old junior debt holders become stockholders and the old stockholders lose everything or perhaps get some equity warrants. Ratio analysis for credit worthiness To avoid the unpleasantness of bankruptcy, bond investors and independent rating agencies analyze a company's financial condition. Typically, investors look at various ratios to see if the firm is a good risk. One of the most common ratios is the firm's current ratio. Current ratio Times interest earned ratio Debt to equity ratio Copyright 1997 by David Luhman
Views: 986 MoneyHop.com
Bond Investing 101: Understanding Interest Rate Risk and Credit Risk
 
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This video is one part of BondSavvy's 10-part video "The Crash Course on Corporate Bond Investing." The full Crash Course video is included with a subscription to BondSavvy https://www.bondsavvy.com/corporate-bond-investment-picks or can be bought on its own here https://www.bondsavvy.com/a-la-carte/corporate-bond-investing-101. This video explains the differences between interest rate risk and credit risk and how you can factor this into your next corporate bond investment. Many investors only invest in investment-grade bonds because they are afraid of the default risk of high-yield (or below investment grade) bonds. The challenge with this thinking is that investment-grade bonds often have longer durations (or time until maturity) and are therefore more sensitive to changes in interest rates. To alleviate these risks, it's important for investors to consider both investment-grade and non-investment-grade corporate bonds. You will learn the following by watching this video: * Difference between investment-grade corporate bonds and high-yield corporate bonds * Difference in default rates between investment-grade corporate bonds and high-yield corporate bonds * How bond prices are quoted * How owning high-yield corporate bonds can help reduce investors' interest rate risk * Why shorter-dated bonds are less sensitive to changes in interest rates * What happens to bond prices when interest rates increase?
Views: 216 BondSavvy
What is HIGH YIELD DEBT? What does HIGH YIELD DEBT mean? HIGH YIELD DEBT meaning & explanation
 
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What is HIGH YIELD DEBT? What does HIGH YIELD DEBT mean? HIGH YIELD DEBT meaning - HIGH YIELD DEBT definition - HIGH YIELD DEBT explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade. These bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better quality bonds in order to make them attractive to investors. Sometimes the company can provide new bonds as a part of yield which can only be redeemed after its expiry or maturity. The holder of any debt is subject to interest rate risk and credit risk, inflationary risk, currency risk, duration risk, convexity risk, repayment of principal risk, streaming income risk, liquidity risk, default risk, maturity risk, reinvestment risk, market risk, political risk, and taxation adjustment risk. Interest rate risk refers to the risk of the market value of a bond changing due to changes in the structure or level of interest rates or credit spreads or risk premiums. The credit risk of a high-yield bond refers to the probability and probable loss upon a credit event (i.e., the obligor defaults on scheduled payments or files for bankruptcy, or the bond is restructured), or a credit quality change is issued by a rating agency including Fitch, Moody's, or Standard & Poors. A credit rating agency attempts to describe the risk with a credit rating such as AAA. In North America, the five major agencies are Standard & Poor's, Moody's, Fitch Ratings, Dominion Bond Rating Service and A.M. Best. Bonds in other countries may be rated by US rating agencies or by local credit rating agencies. Rating scales vary; the most popular scale uses (in order of increasing risk) ratings of AAA, AA, A, BBB, BB, B, CCC, CC, C, with the additional rating D for debt already in arrears. Government bonds and bonds issued by government-sponsored enterprises (GSEs) are often considered to be in a zero-risk category above AAA; and categories like AA and A may sometimes be split into finer subdivisions like "AA-" or "AA+". Bonds rated BBB- and higher are called investment grade bonds. Bonds rated lower than investment grade on their date of issue are called speculative grade bonds, or colloquially as "junk" bonds. The lower-rated debt typically offers a higher yield, making speculative bonds attractive investment vehicles for certain types of portfolios and strategies. Many pension funds and other investors (banks, insurance companies), however, are prohibited in their by-laws from investing in bonds which have ratings below a particular level. As a result, the lower-rated securities have a different investor base than investment-grade bonds. The value of speculative bonds is affected to a higher degree than investment grade bonds by the possibility of default. For example, in a recession interest rates may drop, and the drop in interest rates tends to increase the value of investment grade bonds; however, a recession tends to increase the possibility of default in speculative-grade bonds.
Views: 121 The Audiopedia
Why Pfandbriefe are struggling | Short View
 
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As an asset-backed debt instrument with an investment-grade rating, German covered bonds seem like a great deal for investors, yet issuance has plummeted. The FT's Jonathan Eley explains why their yields are likely to remain low. ► Subscribe to FT.com here: http://bit.ly/2r8RJzM ► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs For more video content from the Financial Times, visit http://www.FT.com/video Twitter https://twitter.com/ftvideo Facebook https://www.facebook.com/financialtimes
Views: 1206 Financial Times
Investment Grade Bonds - Finance - What is the definition? - Financial Dictionary
 
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Investment Grade Bonds Bonds that are rated BBB or above by Standard & Poor's, or Baa or above by Moody's are called investment grade bonds.
Views: 678 Subjectmoney
What is a Junk Bond?
 
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Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is a “Junk Bond” A junk bond is exactly the same as a regular bond. Junk bonds are an IOU from a corporation or organization or country that states the amount it will pay you back called the principal, the date it will pay you back known as the maturity date and the interest it will pay you on the borrowed money. Junk bonds differ because of their issuers' credit quality. All bonds are characterized according to this credit quality and therefore fall into one of two bond categories, investment grade and junk. These are the bonds that pay high yield to bondholders because the borrowers don't have any other option. Their credit ratings are less than pristine, making it difficult for them to acquire capital at an inexpensive cost. Junk bonds are typically rated 'BB' or lower by Standard & Poor's and 'Ba' or lower by Moody's. Junk bonds are risky investments, but have speculative appeal because they offer much higher yields than safer bonds. Companies that issue junk bonds typically have less-than-stellar credit ratings, and investors demand these higher yields as compensation for the risk of investing in them. A junk bond issued from a company that manages to turn its performance around for the better and has its credit rating upgraded will generally have a substantial price appreciation. By Barry Norman, Investors Trading Academy
A Silver-Rated Vanguard Fund for Long-Term Bond Investors
 
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Vanguard Long-Term Investment-Grade Fund has performed well, but it is one of the most interest-rate-sensitive taxable bond funds. For all Morningstar videos: http://www.morningstar.com/cover/videocenter.aspx
Views: 336 Morningstar, Inc.
Outlook 2019: Which type of bonds offer great value?
 
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Where does Fidelity's Sajiv Vaid see value in the bond market in 2019? And is the 30 year bond bull market over? For more MoneyTalk content visit: http://ow.ly/ot3n30n0LcF
Views: 26685 Fidelity UK
How To Invest in Corporate Bonds
 
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BondSavvy founder Steve Shaw shows viewers how he achieves high returns investing in undervalued corporate bonds that can appreciate in value. Few people invest in corporate bonds, but Steve wants to show you how to do it successfully. He discusses his unique approach to bond investing, the 5 myths of corporate bond investing that keep many investors in underperforming mutual funds, and a recent corporate bond investment recommendation. TOC: Time Summary 0:00 Kick-Off 0:56 Achieve Equity Upside Without the Equity Downside 2:04 The Unremarkable Returns of Mega Bond Funds 3:06 My Recent Bond Investment Returns 3:47 How I Think Differently About Bond Investing 10:32 My Goal for This Presentation 11:01 Agenda 12:17 Disclaimer 13:34 Importance of Becoming a Strong Corporate Bond Investor 16:23 Current Investor Asset Allocation 17:59 My Bond Returns vs. iShares AGG ETF 18:59 Why Own Actual Bonds Rather Than Funds? 20:50 Five Myths of Corporate Bond Investing 21:44 Myths #1 & #2: An Opaque Market for the Super-Rich 24:27 Are You Getting a Fair Price? 29:47 Myth #3: You Can’t Beat Low-Cost Funds 31:28 Myth #4: Low After-Tax Returns Given Low-Rate Environment. Also, a review of a 54% bond investment return 35:33 Interest Rates Are NOT the Primary Driver of Bond Prices 38:17 An 8.94% After-Tax Return on a Microsoft Bond 39:57 Myth #5: You’ll Get Ripped Off if You Sell 43:46 Review of Depth of Book 44:07 Advantages of Individual Bonds vs. Bond Funds 47:22 BondSavvy’s Value Add 48:18 Narrowing Down Bond Search Results 50:34 Review of Recent Investment Recommendation 54:19 Financial Analysis of Recommended Bond 1:03:13 Before you invest… 1:05:04 Closing Remarks
Views: 6715 BondSavvy
An Introduction to the Purpose Tactical Investment Grade Bond Fund
 
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Maximize the return/risk opportunity of an investment grade corporate bond portfolio by enhancing yield while managing duration risk.
Views: 384 Purpose Investments
Stronger Returns On U.S. Investment-Grade Bonds Continue In April
 
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U.S. investment-grade bonds posted another month of gains in April, besting the returns on speculative-grade bonds and equities. Standard & Poor's expects the corporate bond market to continue to yield positive returns in the near term. In this CreditMatters TV segment, Senior Director Nick Kraemer summarizes the corporate bond breakouts in April and year to date.
Views: 58 S&P Global Ratings
Investment-Grade Corporate Bonds Yield Strong Returns Despi
 
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Bond returns on investment-grade heavy industrial sectors in the U.S. have performed quite well despite continued uncertainty in the financial markets. In this CreditMatters TV segment, Standard & Poor's Director Nick Kraemer discusses historical performance and risk dynamics at the sector level. Topics include quarterly bond returns, borrowing costs, and default rates.
Views: 219 S&P Global Ratings
BUS123 Chapter 09 - Types of Bonds, Bonds Ratings - Slides 25 to 41 - Spring 2017
 
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In this session, we slog through the major types of bonds including Treasuries, mortgage-backed and asset-backed bonds (issued through a process called securitization), municipal bonds (a.k.a. munis), corporate secured and unsecured bonds (a.k.a. debentures), non-investment grade bonds (a.k.a. junk bonds, high-yield bonds, distressed bonds), and foreign bonds. We finish with a discussion of bond ratings and the ratings agencies, bond quotes, and bond trading.
Views: 103 WonderProfessor
What is High Yield Bond? | Definition of High Yield Bond
 
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What is High Yield Bond? | Definition of High Yield Bond: In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade. These bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better quality bonds in order to make them attractive to investors. Sometimes the company can provide new bonds as a part of yield which can only be redeemed after its expiry or maturity. Risk: The holder of any debt is subject to interest rate risk and credit risk, inflationary risk, currency risk, duration risk, convexity risk, repayment of principal risk, streaming income risk, liquidity risk, default risk, maturity risk, reinvestment risk, market risk, political risk, and taxation adjustment risk. Interest rate risk refers to the risk of the market value of a bond changing due to changes in the structure or level of interest rates or credit spreads or risk premiums. The credit risk of a high-yield bond refers to the probability and probable loss upon a credit event (i.e., the obligor defaults on scheduled payments or files for bankruptcy, or the bond is restructured), or a credit quality change is issued by a rating agency including Fitch, Moody's, or Standard & Poors. A credit rating agency attempts to describe the risk with a credit rating such as AAA. In North America, the five major agencies are Standard & Poor's, Moody's, Fitch Ratings, Dominion Bond Rating Service and A.M. Best. Bonds in other countries may be rated by US rating agencies or by local credit rating agencies. Rating scales vary; the most popular scale uses (in order of increasing risk) ratings of AAA, AA, A, BBB, BB, B, CCC, CC, C, with the additional rating D for debt already in arrears. Government bonds and bonds issued by government-sponsored enterprises (GSEs) are often considered to be in a zero-risk category above AAA; and categories like AA and A may sometimes be split into finer subdivisions like "AA−" or "AA+". ………………………………………………………………………………….. Sources: Text: Text of this video has been taken from Wikipedia, which is available under the Creative Commons Attribution-ShareAlike License Background Music: Evgeny Teilor, https://www.jamendo.com/track/1176656/oceans The Lounge: http://www.bensound.com/royalty-free-music/jazz Images: www.pixabay.com www.openclipart.com
Views: 22 Free Audio Books
Are Municipal Bonds a Safe Investment?
 
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GMS GROUP President and CEO, Paul Konsig, answers the question “how safe are municipal bonds?” A municipal bond specialist can assess these ratings while also understanding the needs of the client. Ratings are important benchmarks to gauge the safety of municipal bond investments. They reflect a professional assessment of the issuer’s ability to repay the bond’s face value at maturity. Generally, BBB-rated municipal bonds or Baa (Moody’s) or better are considered to be “Investment Grade” or suitable for safe preservation of municipal bond investment capital. Prior to making an investment, speak with our team to fully understand the risk associated with municipal bonds. Visit: http://ow.ly/AN1t8 for more information on municipal bond safety.
Views: 902 THE GMS GROUP
What is Credit Rating of a Bond? - Term Buster - Franklin Templeton India
 
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What is credit rating of a bond? What is the importance of a AAA rating? What does it mean to have a good credit rating for your bonds? Find answers to these question here. Valuation of bonds are based on many parameters, bond rating being one amongst them. It shows the likelihood of getting the interest and principle on the bond in time. Lower rating would mean risky instrument, AAA rating being the highest grade for a bond. Knowing what is credit rating will help you make better investment decisions in addition to helping you in valuation of bonds. Watch our “Term Busters” series and de-complicate investments. Visit Investor Education Section of our website - https://www.franklintempletonindia.com/investor/investor-education/new-to-investing Watch more, and we’ll help you learn about different types of funds offered by Franklin Templeton. https://www.youtube.com/playlist?list=PLpDLpRd877mTfptx_2dTYyY8g6nfa-Qk6 You can also write to us with your feedback ([email protected]) View more such videos in the playlist Franklin Templeton Academy: https://www.youtube.com/playlist?list=PLpDLpRd877mSF4p7DIh5OMhS6zktFJ4IP Invest in Mutual Funds with Franklin Templeton. Official Website: https://www.franklintempletonindia.com/ Facebook: https://www.facebook.com/FranklinTempletonIndia/ LinkedIn: https://www.linkedin.com/company/franklin-templeton-investments Instagram: https://www.instagram.com/ftiindia/?hl=en Twitter: https://twitter.com/ftiindia?lang=en
Views: 326 TempletonIndia
Getting junked  Who rates countries' debt and why it matters !
 
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A major ratings agency has downgraded Greek debt to junk status, further damaging the country's efforts to avoid default and raising doubt over the overall health of the euro. France 24 explains how credit rating agencies work and why they matter. Greek debt is currently worth "junk", the major ratings agency Standard and Poor's told investors on Tuesday. The agency also downgraded Portugal's rating to A-. The financial slur marked the first time a eurozone member lost investment-grade rating since the currency's 1999 debut.Greece cried foul at the downgrade, saying the S&P's move did not correspond with the real data. But few investors were listening to Athens. A dip in market confidence led European and then Asian stocks to plunge Tuesday and Wednesday and sent the euro to one-year lows against the dollar. While Portuguese bonds are still investment grade, some market observers think a junk rating will soon infect Portugal. "Contagion will spread to Portugal, to Spain and to other countries and may lead to a second dip in the world recession," warned Ali Fatemi, a professor at the American Graduate School of Business and Economy in Paris. While a rating expresses one opinion about the quality of a credit issuer, the reaction to the Greek downgrade is evidence that ratings can have sweeping consequences for local and global economies. So who are these agencies and why do their opinions matter so much? Making the grade A credit rating agency, or CRA, is a company that gives its opinion about an institution's ability to pay back loans. The largest and most important CRA's are the US-based companies Standard and Poor's, Fitch and Moody's, which are overseen by the Securities and Exchange Commission in their assignment of credit ratings. The institutions they rate include corporations, local governments and states that issue debt-like securities, such as bonds. The CRA's assign credit ratings, based on tiers that are meant to reflect a company or government's creditworthiness. The junk rating refers to the BB+ rating by S&P. This is the highest speculative grade (the best of risky investments) in S&P's letter-rating system. The highest rating, AAA, reflects an "extremely strong capacity to meet financial commitments", according to S&P, while the lowest D rating is issued for institutions that fail to pay their financial commitments. Greece's current BB+ grade is six notches below the AAA grade. S&P's downgrading of Greece and Portugal tells investors what they might expect if they are holding bonds issued by these counties. A lower rating does not automatically trigger a sell-off of bonds, since investors look at many aspects of a company or country's investment potential. And a high rating does not guarantee that a company or country it will not default on loans. The US-dominated CRA's have been criticized for making high ratings based on the willingness to incorporate US ideas of best business practices and for the lack of transparency in their ratings. But countries can do little to curb their power. Downgrades have the inevitable effect of making potential bond buyers put away their wallets or for bond owners to trade them. This effect is a significant blow to a country like Greece, which will face added pressure from the EU and IMF to balance its budget as a condition for receiving a critical financial aid package. By Luke SHRAGO (video) FRANCE 24 (text)
Credit Ratings, Lecture 009, Securities Investment 101, Video 00011
 
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In this lecture we discuss credit ratings and credit rating agencies, particularly as they relate to bond sales, credit risk, and default risk. We explain what credit risk is and what the ratings actually mean in terms of the risk of an organisation failing to meet its bond payment obligations. Along the way, we briefly mention commercial paper, liquidation rankings, the relationship of preference shares to bonds, and several more jargon terms used in the credit ratings arena. Previous: http://www.youtube.com/watch?v=G_jbOJn_JLg Next: https://www.youtube.com/watch?v=TxkGQ_QmuRs For financial education from London to Singapore and beyond, please contact MithrilMoney via the following website: http://mithrilmoney.com/ This MithrilMoney lecture was delivered by Andy Duncan, CQF. Please read our disclaimer: http://mithrilmoney.com/disclaimer/
Views: 12803 MithrilMoney
Municipal Bond Investment
 
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http://www.profitableinvestingtips.com/bond-investing/municipal-bond-investment Municipal Bond Investment By www.ProfitableInvestingTips.com Municipal bond investment may be an attractive option for investors in the coming year. When the Fed eventually cuts its quantitative easing stimulus plan rates will go up. That will make bonds attractive. However, with higher interest rates come higher taxes. Municipal bonds have the advantage of not carrying a Federal Tax burden. Municipal bond investment may be a good conservative version of today's value investing. Municipal Bonds A municipal bond is issued by a municipality. That is local government or government agencies, not the state or federal government. Issuers can include school districts, airports, utilities, and more. The bonds can be a general obligation of the municipality to repay or may be tied to an income stream such as taxes assessed at an airport, or property tax assessed to support a school district. What makes municipal bonds attractive to those in high tax brackets is that their interest is typically exempt from federal taxes and often free of state or local taxes as well. When an investor looks at the return from taxable corporate bonds or dividends on dividend stocks he or she will calculate the return on investment after taxes when comparing the investment to a municipal bond investment. Safety of Municipal Bond Investment Municipal bond investment is historically pretty safe. That should be said as the headlines are full of news on huge state and local deficits. However, over the last decades the default rate on municipal bonds has been less than 1% while the default rate on corporate bonds has been over 10%. Nevertheless, municipal bond investment in more than one municipality in order to balance risk is not a bad idea. A fundamental analysis of municipal bonds should include a number of specifics. Not all municipal bonds are tax exempt! A bond offering will typically come with certification by a law firm that the bonds are tax exempt and to what degree. If you as the investor do not live in the municipality or state where the bonds are issued you will probably not be eligible for a local or state tax exempt status, if it is part of the bond. Bonds are rated by agencies such as Moody's or Standard and Poor's. To the extent that there is a risk of default it will be wise to make sure that the bonds have an investment grade rating. As of 2008 there had never been a default on a Moody's or Standard and Poor's Aaa/AAA municipal bond or a Standard and Poor's AA rated bond. Investment grade municipals in general have a historic rate of default of less than a fifth of a percent. As with all investments the investor should sit down with paper and pencil (or at the computer) and calculate the return on investment of municipal bonds versus other investments considering the relatively low level of risk involved. Depending upon if the stimulus program goes away rates may or may not rise. If so municipal bond investment may be an attractive vehicle for those soon to be paying higher taxes. http://youtu.be/x4jjzIC7gIs
Views: 486 InvestingTip
Warren Buffett on the Financial & Housing Crisis and Credit Rating Agencies (2010)
 
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A credit rating agency (CRA) is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves. In some cases, the servicers of the underlying debt are also given ratings. More on Buffett: https://www.amazon.com/gp/search?ie=UTF8&tag=tra0c7-20&linkCode=ur2&linkId=22f3a19f1003df6e04ad734879f32fb7&camp=1789&creative=9325&index=books&keywords=warren%20buffett In most cases, the issuers of securities are companies, special purpose entities, state and local governments, non-profit organizations, or national governments issuing debt-like securities (i.e., bonds) that can be traded on a secondary market. A credit rating for an issuer takes into consideration the issuer's credit worthiness (i.e., its ability to pay back a loan), and affects the interest rate applied to the particular security being issued. The value of such security ratings has been widely questioned after the 2007--09 financial crisis. In 2003, the U.S. Securities and Exchange Commission submitted a report to Congress detailing plans to launch an investigation into the anti-competitive practices of credit rating agencies and issues including conflicts of interest. More recently, ratings downgrades during the European sovereign debt crisis of 2010--11 have drawn criticism from the EU and individual countries. A company that issues credit scores for individual credit-worthiness is generally called a credit bureau (US) or consumer credit reporting agency (UK). Credit rating agencies have been subject to the following criticisms: Credit rating agencies do not downgrade companies promptly enough. For example, Enron's rating remained at investment grade four days before the company went bankrupt, despite the fact that credit rating agencies had been aware of the company's problems for months. Or, for example, Moody's gave Freddie Mac's preferred stock the top rating until Warren Buffett talked about Freddie on CNBC and on the next day Moody's downgraded Freddie to one tick above junk bonds. Some empirical studies have documented that yield spreads of corporate bonds start to expand as credit quality deteriorates but before a rating downgrade, implying that the market often leads a downgrade and questioning the informational value of credit ratings. This has led to suggestions that, rather than rely on CRA ratings in financial regulation, financial regulators should instead require banks, broker-dealers and insurance firms (among others) to use credit spreads when calculating the risk in their portfolio. Large corporate rating agencies have been criticized for having too familiar a relationship with company management, possibly opening themselves to undue influence or the vulnerability of being misled. These agencies meet frequently in person with the management of many companies, and advise on actions the company should take to maintain a certain rating. Furthermore, because information about ratings changes from the larger CRAs can spread so quickly (by word of mouth, email, etc.), the larger CRAs charge debt issuers, rather than investors, for their ratings. This has led to accusations that these CRAs are plagued by conflicts of interest that might inhibit them from providing accurate and honest ratings. At the same time, more generally, the largest agencies (Moody's and Standard & Poor's) are often seen as promoting a narrow-minded focus on credit ratings, possibly at the expense of employees, the environment, or long-term research and development. These accusations are not entirely consistent: on one hand, the larger CRAs are accused of being too cozy with the companies they rate, and on the other hand they are accused of being too focused on a company's "bottom line" and unwilling to listen to a company's explanations for its actions. While often accused of being too close to company management of their existing clients, CRAs have also been accused of engaging in heavy-handed "blackmail" tactics in order to solicit business from new clients, and lowering ratings for those firms . For instance, Moody's published an "unsolicited" rating of Hannover Re, with a subsequent letter to the insurance firm indicating that "it looked forward to the day Hannover would be willing to pay". When Hannover management refused, Moody's continued to give Hannover Re ratings, which were downgraded over successive years, all while making payment requests that the insurer rebuffed. In 2004, Moody's cut Hannover's debt to junk status, and even though the insurer's other rating agencies gave it strong marks, shareholders were shocked by the downgrade and Hannover lost $175 million USD in market capitalization. http://en.wikipedia.org/wiki/Credit_rating_agency
Views: 12965 The Film Archives
Bond Futures: How to Trade Bond Futures | Bond Futures Trading Strategies tutorial - Jonathan Rose
 
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Let me show the Correct Way to Trade Bond Futures Learn how to Trade Bond Futures. DONT MISS YOUR FREE WEEK https://goo.gl/RXhLnY .This is Bond Futures Trading Strategies tutorial. What is Bond Futures? Although the stock market is the first place in which many people think to invest, the U.S. Treasury bond markets arguably have the greatest impact on the economy and are watched the world over. Unfortunately, just because they are influential, doesn't make them any easier to understand, and they can be downright bewildering to the uninitiated. At the most basic level, a bond is a loan. Just as people obtain a loan from the bank, governments and companies borrow money from citizens in the form of bonds. A bond really is nothing more than a loan issued by you, the investor, to the government or company, the issuer. For the privilege of using your money, the bond issuer pays something extra in the form of interest payments that are made at a predetermined rate and schedule. The interest rate often is referred to as the coupon, and the date on which the issuer must repay the amount borrowed, or face value, is called the maturity date. One wrinkle in the equation, though, is that not all debt is created equal with some issuers being more likely to default on their obligation. As such, credit rating agencies evaluate companies and governments to give them a grade on how likely they are to repay the debt (see "Good, better, best"). Benji Baily and Delmar King, fixed income investment managers at Everence Financial, say ratings generally can be classified as investment grade or junk. "Anything that's considered to be an investment grade, you would have a fairly high probability that you're going to get your money back at maturity," King says. "Of course, the lower you go down the credit spectrum, the more risk there is of default and the possibility that you could have losses. Therefore, the lower the security grade you have, the more yield compensation you should have for taking that default risk." So, if you purchased a 30-year U.S. Treasury bond (currently AA+ from S&P and AAA from Moody's and Fitch) for $100,000 with a coupon rate of 6%, then you could expect to receive $6,000 a year for the duration of the bond and then receive the face value of $100,000 back. At least, that's how a bond would work if you held it to maturity. Rather than hold a bond to maturity, they also can be traded. But, as a bond is traded, interest rates can change, so the overall value of the bond can change. "If you bought a bond that has a 10% coupon and the rest of the market is fine with owning a 1% coupon, then someone is going to love to have that 10% coupon until maturity," Baily says. "Conversely, if you have a 1% bond and everyone else is expecting that the market in general will be at 10%, then you're going to need to pay someone a lot of money to take that 1% bond instead of buying a new 10% bond." Because coupon rates generally are fixed, to adjust for future expectations the price of the bond or note has to move up or down. If yields, the interest or dividends received on a security, go up, the price will fall to accommodate that higher yield; if yields go down, then price has to go up. GRAB YOUR FREE WEEK HERE https://goo.gl/RXhLnY Nayeem Talukder, [15.01.18 06:29] 5 Secret Tips Options Trading: How To Trade Stock Options: https://www.youtube.com/watch?v=-2v-LrBoFWA 5 Secret Tips to Trade Stock Options During Earnings Season - options for beginners https://www.youtube.com/watch?v=awbh33LxYXk How to trade stock options Playlist: https://www.youtube.com/watch?v=awbh33LxYXk&list=PLR_XM0ZsTUySgd3JmlvNv0xosYVz5iAcr SUBSCRIBE FOR STOCK OPTION EDUCATION AND TRADE IDEAS! https://www.youtube.com/channel/UCa5hPmX8-q03fxDYLi9XM7w SUBSCRIBE TO OUR EMAIL LIST http://activedaytrader.com LETS CONNECT http://facebook.com/activedaytrader Email me anytime: [email protected] analysis options for beginners technical analysis options strategies Tending search on youtube: #stockOptions #howtotradestockoptions #tradingStrategies #tradingOptions #BondFutures #BondFuturesStrategies pairs trading jonathan rose
Views: 6918 Jonathan Rose
What is Junk?
 
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Junk refers to an asset, such as a stock or bond when rating drops below investment grade. Once a credit rating drops below the BBB level, it is "sub-investment" grade and is commonly referred to as junk. Companies with a low credit rating generally pay a much higher interest rate on their debt, and may find it difficult to sell new bonds. By Barry Norman, Investors Trading Academy.
Fitch explains investment grade rating on Philippines
 
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The Philippines remains at investment grade, with a possible outlook, meaning an upgrade is likely if certain conditions are met, according to debt watcher Fitch Ratings. Subscribe to the ABS-CBN News channel! - http://bit.ly/TheABSCBNNews Visit our website at http://news.abs-cbn.com Facebook: https://www.facebook.com/abscbnNEWS Twitter: https://twitter.com/abscbnnews
Views: 1036 ABS-CBN News
Peter Kwaak (Robeco) on Robeco Investment Grade Corporate Bonds
 
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Interview with Peter Kwaak, fundmanager Robeco, on the new product Robeco Investment Grade Corporate Bonds
Stock Market 101: Investing in mutual funds
 
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MANILA -- With the country's strong economy and recent investment-grade rating recognition, how does one cash in gains in equities and bonds through mutual funds?
Views: 12500 ABS-CBN News
BUS123 Chapter 09 - Types of Bonds, Bonds Ratings and Quotes - Slides 25 to 41
 
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In this session, we slog through the major types of bonds including Treasuries, mortgage-backed and asset-backed bonds (issued through a process called securitization), municipal bonds (a.k.a. munis), corporate secured and unsecured bonds (a.k.a. debentures), non-investment grade bonds (a.k.a. junk bonds, high-yield bonds, distressed bonds), and foreign bonds. We finish with a discussion of bond ratings and the ratings agencies, bond quotes, and bond trading.
Views: 77 WonderProfessor
Snack Pack: Gold, Dollar, Investment Grade Bonds
 
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Dec. 7 (Bloomberg) -- Bloomberg's Stephanie Ruhle, Dominic Chu, Sara Eisen and Adam Johnson update the top trading stories of the day. They speak on Bloomberg Television's "Lunch Money."
Views: 383 Bloomberg
Investment grade still elusive for Greek bonds, Eleftheria Kourtali | Kathimerini
 
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Investment grade still elusive for Greek bonds, Eleftheria Kourtali | Kathimerini Though Greece’s credit rating has enjoyed gradual upgrades by rating agencies in recent months, reaching the coveted investment grade that will attract investors to the country’s bonds will not be easy, according to analysts and banking groups examining Greece’s position. The country is currently rated BB- by Fitch, B+ by S&P and B3 by Moody’s, all of which are below investment grade and (highly) speculative. If other countries that completed bailout programs are anything to go by, Athens may st... ----------------------------- Don't forget Subscribe: https://www.youtube.com/channel/UC1ReW40NAEs6fVFk6Av97sQ?sub_confirmation=1
Views: 1 GR News
Rand remains steady after rating downgrade by Moody's
 
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The rand was relatively composed on Monday morning, suggesting that a credit rating downgrade by Moody's on Friday had been largely priced. As expected, Moody's downgraded South Africa's debt rating by one notch, meaning the country's investment grade credit rating was still intact, at least for now. However, Moody's outlook was kept at negative, implying that the agency could still downgrade the rating to sub-investment grade, which would probably trigger bond outflows and cause the rand to weaken. For now, bond inflows have bailed out of the rand, which in turn has helped to keep a lid on inflation, which has returned to within the Reserve Bank's 3%-6% target range. Investors would also keep a close watch on the US Federal Reserve, which is expected to lift the repurchase later this week by at least 25 basis points. Subscribe to us on YouTube: http://ow.ly/Zvqj30aIsgY Follow us on: Facebook: https://www.facebook.com/cgtnafrica/ Twitter: https://twitter.com/cgtnafrica
Views: 276 CGTN Africa
Moody's expected to keep SA's rating above sub-investment grade
 
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Rating agency Moody's is expected to keep its rating of the country at one notch above sub-investment grade when it releases its review tomorrow. But analysts say our growth forecast has worsened since the downgrades earlier this year, and squabbles over the Reserve Bank's mandate won't help. For more news, visit: http://www.sabc.co.za/news
Views: 220 SABC Digital News
Understanding and managing the risk of bonds
 
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This whiteboard video outlines why might it be risky for income investors to allocate too much of their portfolio to traditional income investments like government and investment grade bonds.
WHO Issues Bonds And Why?
 
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Nervous investors often flock to default risk issue bonds, they may be unable obtain an investment grade bond credit rating. What are high yield corporate bonds? Sec. Who issues bonds and why? Cameron hume. The positive economist trax who issues bonds? . It stands to reason then that the bodies issue them are borrowing money. Sthe issuance decision hedging risk management, cost incentives to issue in foreign currency, and bond market characteristics that motivate offshore such 13 apr 2016 corporate bonds are a financial tool corporation uses raise funding. Banks' much vaunted issuance of their own bonds still costs them so dearly that government backed debt for a bond issue to be success, the issuer needs ensure characteristics itself meet both its requirements and targeted. Why issue bonds offshore? Bank for international settlements. The primary market refers to those issuers that borrow most and have the greatest number of bonds in issue are governments related institutions, such as world bank, european investment bank us agencies fannie mae freddie mac finance, a bond is an instrument indebtedness issuer holders. Private placement involves the 13 aug 2016 longest dated bond issued by uk will be paid back on 22 july 2068. You can issue corporate bonds or sell shares of stock without taking a city may to raise money build bridge, while the federal government issues finance its spiraling debts. Asp url? Q webcache. Bond (finance) wikipediawhy do corporations issue bonds? Mount holyoke college. Investopedia investopedia why companies issue bonds. The interest rate companies pay bond investors is often less than the they would be required to obtain a bank loan 13 jun 2012 now that you know why want buy bonds, and what influences return can bring you, not have look at other number of different kinds entity issue bonds. Chapter 1 requirements to issue bonds world bank treasury. The uk 24 jun 2015 the different types of institutions that issue these bonds are states, towns, cities, counties, school districts, hospitals, transportation authorities, corporations have two options when it comes to raising money without taking out a loan. Why corporations issue bonds rather than stocks what is a bond? Personal finance wsj. Issue bonds why companies issue. Bonds should not be issued by companies who already carry large amounts of debt, as a bond issuance simply increases debt and makes an unstable company more so. Googleusercontent search. The most bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. These include companies, public authorities and supra national institutions. Like people, companies can borrow from banks, but issuing bonds is often a more attractive proposition. Govbanks issue bonds, but government backing is key bond issuance the questions. Bonds in america investing bonds. How to issue corporate bonds (with pictures) wikihowworld news how do municipal work? Learn t
Views: 90 Pan Pan 1
Fallen Angel ETF Flies High Against Rival Bond Funds
 
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The ETF industry has something for everyone: the VanEck Vectors Fallen Angel High Yield Bond ETF (ticker: ANGL) tracks below investment grade corporate bonds that were rated investment grade at time of issuance. In this week's "There's an ETF for That," Bloomberg's Scarlet Fu explains the ins and outs of ANGL. Learn more: https://www.vaneck.com/videos/bloomberg-etf-angl-flies-high/
Views: 32 VanEck
PowerShares 1-10 Year Laddered Investment Grade Corporate Bond Index ETF (PIB)
 
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Bad timing can hurt bond performance. PowerShares laddered corporate bond ETFs help reduce reinvestment risk, with potentially higher yields than similarly rated government debt.
Views: 23 InvescoCanada
Investing Basics: Bonds
 
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Bonds are one of the most common investments, but to many investors they’re still a mystery. In this video you’ll learn the basics of bonds and how they might be used by traders looking to preserve capital and pursue extra income.
Views: 137143 TDAmeritrade