Home
Search results “High yield bond rating”
How Bond Ratings Work
 
07:15
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: 2509 InformedTrades
What is HIGH YIELD DEBT? What does HIGH YIELD DEBT mean? HIGH YIELD DEBT meaning & explanation
 
06:21
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: 128 The Audiopedia
What is High Yield Bond? | Definition of High Yield Bond
 
11:28
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: 25 Free Audio Books
What is a Junk Bond?
 
01:33
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
Bond Ratings | Corporate Finance | CPA Exam BEC | CMA Exam | Chp 7 p 3
 
13:07
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.
Is Moody's WARNING Of A CRASH? - Massive Wave Of Junk Bond Defaults Ahead!
 
14:09
Josh Sigurdson talks with author and economic analyst John Sneisen about Moody's most recent warning as the credit rating agency claims there is likely a large wave of junk bond defaults ahead. We have seen the level of global non-financial companies rated as speculative or junk rise 58% since 2009, the largest proportion in history! We've also seen a 49% increase in debt for U.S. companies as well as the rise of share buybacks which are becoming more prevalent and more risky by the day. Moody's warnings should not be taken in stride. The agency only issues warnings when they absolutely have to and cannot put off the bad market sentiment any longer. They can only cover up so long until it becomes obvious. For their own good, they have to look like a serious credit rating agency when the markets tank, so they can say "I told you so." According to Moody's, the low interest rates and obsession with yield has lead to companies issuing mounds of debt that in comparison offer low levels of protection for investors. They warn that when economic conditions worsen, the outlook won't be so benign. We haven't seen this level of concern since 2008, and there's a reason for that. Nothing has changed since 2008. Well, actually scratch that... things have gotten WORSE since 2008. We never saw a recovery, we simply saw perpetuation. Putting off the crisis a bit longer, leading to far more pressure build-up and centralization run amok. Now, when it comes down, it'll come down that much harder and it'll be as if no one ever learned. If we want to stop the circular havoc, we as individuals need to support the individual's demand of their currency, the free market. Not bank and government centralization leading to massive downfalls. How many times do we need to go through this. Of course the fundamentals are off the table due to the level of manipulation in the monetary system as well as the markets, so we cannot put a date on the crash, but we know it has to happen inevitably and so we must prepare and understand the repeated problems. Self sustainability and individual responsibility are simply the most necessary ways to protect ourselves against this market and monetary calamity. Individuals must do their own due diligence and come out of this problem, strong and independent. Stay tuned for more from WAM! Video edited by Josh Sigurdson Featuring: Josh Sigurdson John Sneisen Graphics by Bryan Foerster and Josh Sigurdson Visit us at www.WorldAlternativeMedia.com LIKE us on Facebook here: https://www.facebook.com/LibertyShallPrevail/ Follow us on Twitter here: https://twitter.com/WorldAltMedia FIND US ON STEEMIT: https://steemit.com/@joshsigurdson BUY JOHN SNEISEN'S LATEST BOOK HERE: Paperback https://www.amazon.com/dp/1988497051/ref=zg_bs_tab_pd_bsnr_2?_encoding=UTF8&psc=1&refRID=ZBK6VTXQRA2F77RYZ602 Kindle https://www.amazon.ca/dp/B073V5R72H/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1500130568&sr=1-1 DONATE HERE: https://www.gofundme.com/w3e2es Help keep independent media alive! Pledge here! Just a dollar a month can help us stay on our feet as we face intense YouTube censorship! https://www.patreon.com/user?u=2652072&ty=h&u=2652072 BITCOIN ADDRESS: 18d1WEnYYhBRgZVbeyLr6UfiJhrQygcgNU https://anarchapulco.com/buy-your-tickets/ Use Promo Code: wam to save on your tickets! World Alternative Media 2018 "Find the truth, be the change!"
Rate hike impact on high yield bonds
 
02:45
Rate hike impact on high yield bonds
Views: 37 sagar reddy
Why Actively Managed High Yield Bond Funds Trump ETFs
 
03:37
Since the start of 2013, investors have poured nearly $9 billion into high-yield exchange traded funds. Gershon Distenfeld, director of high yield at AllianceBernstein, said it is clear that they should have opted for actively managed funds instead. 'The numbers tell the whole story. You don’t have to give fancy arguments. These things have been around for almost a decade and they have well underperformed the average active manager,' said Distenfeld. According to Distenfeld’s numbers, since the start of 2008, shortly after their inception, the two largest ETFs— HYG and JNK—delivered annualized returns of 6.2% and 6%, respectively, well short of the 8.3% annualized return for the Barclays US Corporate High-Yield Index. He adds that the top 20% of active high-yield mangers, as rated by Lipper, have also comfortably outperformed these two ETFs and have done it with lower volatility, as measured by risk-adjusted returns, and are not really much cheaper than active funds. 'The management fees are slightly lower. They are not the few basis points you find in the equity world. They are 40 and 50 basis point fees, but again, the numbers tell the whole story. Over eight years they have underperformed a high yield index by about 200 basis points and some of the top-tier managers by 300 or 400 basis points.' Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Rally In High Yield Bond Prices Pushed Yields Lower, Investors' Warning | Trading Nation | CNBC
 
01:27
Keep an eye on the high yield bond market. In recent months, the rally in high yield bond prices have pushed yields lower, close to levels not seen since the 2008 financial crisis. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC Rally In High Yield Bond Prices Pushed Yields Lower, Investors' Warning | Trading Nation | CNBC
Views: 422 CNBC
Day in the Life of a Credit Analyst | PIMCO
 
05:03
Christian Stracke, Global Head of Credit Research, offers an inside look at PIMCO’s intensive credit research process and how it led the firm to invest in pipeline companies as oil reached its 2016 low. For more information, visit http://pimco.com Follow us for insights on economies, markets and investing: Twitter: https://twitter.com/pimco LinkedIn: http://www.linkedin.com/company/pimco Facebook: http://www.facebook.com/pimco Blog: http://blog.pimco.com Terms and conditions: pimco.com/socialmedia
Views: 67799 PIMCO
Best Bonds for 2014? Europe, High Yield and a Barbell
 
02:23
Quantitative easing has created a rush into income-producing equity classes, so if you're looking for yield, consider CCC-rated high yield bonds in 2014, says Mark Cernicky, Managing Director at Principal Global Fixed Income. Cernicky also says investors should look to Europe as the "land of opportunity for credit" as the European high yield market has set consecutive years of record new issuance. It will be a bumpy road, however, as Cernicky expects increased interest-rate volatility through 2014. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
USMLE Biochemistry High Yield List, Biochem High Yield Rating
 
09:05
http://www.stomponstep1.com/usmle-biochemistry-high-yield-rating-biochem-for-step-1/ Biochem Material Listed By High Yield Rating: 8 – Kartagners Syndrome 7 – Tay-Sachs) 5 – I Cell Disease 4 – Osteogenesis Imperfecta 3 – Methanol Poisoning 3 – PKU 3 – Cytoskeleton Basics 3 – Marfan Synrome 3 – Collagen and Elastin Basics 2 – Alcohol Metabolism 2 – Fructose Disorder 2 – Galactose Disorder 2 – Chediak Higashi 2 – Ehlers Danlos 2 – Gaucher 2 – Von Gierkes 2 – McCardles 1 – Nieman-Pick 1 – Sorbitol 1 – OTC Deficiency 1 – Hurler 1 – Fabry 1 – Maple Syrup Urine Disease “No Yield” (HYR of 0): • The Biochemical Structures of Almost Anything • Ammonia Transport • Specifics about Lipid Transport • Hartnup Disease • Cori Disease • Pompe Disease • Cystinuria • Protein structure • Specific functions of most organelles • Specifics about cilia structure • Types of intermediate filaments & associated immunohistochemical stains • Cellular trafficking signals other than Mannose-6-Phosphate • Peroxisome & Proteasome • Smooth vs. rough endoplasmic reticulum • Cytoskeleton assembly and disassembly • Henderson Hasselbalch Eqn • Chemical Bonds • Thermodynamics • Michaelis-Menton Eqn • Specifics about most Laboratory Techniques
Views: 28954 Stomp On Step 1
Opportunities for high yield bonds
 
04:09
Present-day volatile markets offer opportunities for high yield bonds in sectors where we see a change in management behavior, e.g. in metals & mining and in financials.
Stocks & Bonds : What Are Junk Bonds?
 
01:25
Junk bonds, or high yield bonds, are bonds that have low credit ratings, and therefore include an inherent risk. Be aware of a bond's credit rating before making an investment with help from a portfolio manager in this free video on personal finance and money management. Expert: Gregory Bramwell-Smith Bio: Gregory Bramwell-Smith is the relationship and portfolio manager at Bramwell-Smith Associates. Filmmaker: David Pakman
Views: 2635 ehowfinance
Why High Yield Corporate Bonds?
 
02:16
In this week's Market Minute, CIO Terri Spath talks about High Yield Corporate Bonds. She reviews what they are, why she likes them, and how active management is a necessity for investing in this asset class.
EP Junk Bond Rating
 
00:22
East Providence's finances has been downgraded to junk bond status.
Views: 11 WPRI
Types of Bonds, Bond Ratings
 
02:28
Join the course on introduction to investments on http://symynd.com/. Topic covered: Interest Rates, Corporate Bonds, Government Bonds, Mortgage-Backed Securities, interest & repayment of principal, corporate bonds, municipal bonds, Federal government bonds (a.k.a. Treasury bonds, T-bonds, "Treasuries"), trust indenture (a.k.a. bond indenture, indenture), trustee, protective covenants, convertible bonds (more about convertibles later), inverse relationship of bond prices and interest rates, when interest rates fall, bond prices rise -- when interest rates rise, bond prices fall, bonds versus stocks, risks: interest rate risk, purchasing power risk, business / financial risk, liquidity risk, call risk (prepayment), nominal rate (a.k.a. "coupon rate") versus current yield versus yield to maturity, face value (a.k.a. par value, normally $1,000 denominations), maturity dates, term bonds versus serial bonds versus sinking fund, bonds versus notes, call provision, call premium, put provision (unusual), par value (a.k.a. "par") versus premium versus discount, Treasury Bonds & Notes (versus Treasury Bills), TIPs -- Treasury Inflation-Indexed Obligations, agency bonds (examples: Fannie Mae, Freddie Mac, Ginnie Mae, Sallie Mae), mortgage bonds (a.k.a. mortgage-backed bonds, mortgage-backed securities), collateralized mortgage obligations, municipal bonds (general obligation bonds -- "GO's", revenue bonds, special tax bonds), tax-exempt yield and taxable equivalent yield , corporate bonds, senior bonds versus junior bonds, debentures versus subordinated debentures, income bonds, zero-coupon bond, "junk bonds" (a.k.a. high yield bonds), foreign bonds, bond ratings, bond trading and bond quotes
Views: 1502 symynd
Why You Should Think Twice about High Yield Bonds | Common Sense Investing
 
05:17
In this episode of common sense investing I will tell you why you should think twice about owning high yield bonds. Alternative investments are a broad category, so I have split this topic up into multiple parts. In Part One, I will tell you why high yield bonds don’t quite yield enough to justify their risks. My name is Ben Felix of PWL Capital and this is Common Sense Investing. I’ll be talking about a lot more common sense investing topics in this series, so subscribe and click the bell for updates. I want these videos to help you to make smarter investment decisions, so feel free to send me any topics that you would like me to cover. ------------------ Visit PWL Capital: https://goo.gl/uPcXg7 Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIN: https://www.linkedin.com/company-beta/105673/ Follow Ben Felix on - Twitter: https://twitter.com/benjaminwfelix - LinkedIn: https://www.linkedin.com/in/benjaminwfelix/ ------------------ Video channel management, content strategy & production by Truly Inc. - Website: http://trulyinc.com - Twitter: https://twitter.com/trulyinc
Views: 7096 Ben Felix
Credit Rating Symbols in India - Explained | Ratings for Debt, SO & Mutual Fund Schemes
 
06:58
Credit Rating Symbols - Long Term Debt Instruments - AAA Highest Degree of Safety AA High Degree of Safety A Adequate Degree of Safety BBB Moderate Degree of Safety BB Moderate risk of default B High Risk of Default C Very High Risk of default D Default or expected to be in default soon Short Term Debt Instruments - A1 Very strong degree of safety. Lowest Credit Risk A2 Strong degree of safety. Low credit risk. A3 Moderate degree of safety & carry higher credit risk A4 Minimal degree of safety. Very high credit risk & susceptible to default A5 default or expected to be in default on maturity Long term & Short term structured finance instruments - Long term & Short Term Debt mutual fund schemes
Views: 440 MODELEXAM
Fund Analyst Rating: Neuberger Berman High Yield Bond Fund
 
02:57
REAFFIRMED RATINGS: Morningstar's Jonathan Miller on the Neuberger Berman High Yield Bond Fund, T. Rowe Price Continental European and Allianz China Equity. Morningstar Guest: Jonathan Miller, Director of Manager Research, UK, Morningstar http://www.morningstar.co.uk -~-~~-~~~-~~-~- Please watch: "Should You Be Worried About the Economy?" https://www.youtube.com/watch?v=WUzqTPeI9IM -~-~~-~~~-~~-~-
Views: 382 Morningstar UK
Growing Economy Will Support High Yield Bonds
 
03:56
High yield bond funds may not be shooting the lights out so far in 2015, but they are still a good place to be with the domestic economy growing 'modestly,' said Andy Toburen, senior portfolio manager at Chartwell Investment Partners. 'Default rates are in the 2% to 3% range which is low by historical standards and in an environment with a solid economy, reasonably low default rates and pretty good valuations, we like high yield right now,' said Toburen. The SPDR Barclays High Yield Bond ETF (JNK), which yields just under 6%, is down slightly over 1% year-to-date and over 7% in the past 12 months. The entire high yield sector suffered in the fourth quarter of 2014 as lower oil prices dragged down the value of energy related paper. Toburen remains watchful of that particular sector. 'Certainly the lower quality, triple C rated and distressed paper, some of that is in energy and some in metals and mining, that’s an area where we would be very cautious,' said Toburen. On the flip side, lower gasoline prices have acted like a tax cut for consumers and that is why Toburen is constructive on sectors which rely on Americans opening their wallets. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Fund Analyst Rating: Neuberger Berman High Yield Bond
 
02:57
REAFFIRMED RATINGS: Why analysts positively rate funds by Neuberger Berman, Polar Capital and Loomis Sayles Studio Guest: Jonathan Miller - Director of Manager Research, UK, Morningstar http://www.morningstar.co.uk
Views: 648 Morningstar UK
Bond Investing 101: Understanding Interest Rate Risk and Credit Risk
 
05:23
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: 261 BondSavvy
What is CORPORATE BOND? What does CORPORATE BOND mean? CORPORATE BOND meaning & explanation
 
07:21
What is CORPORATE BOND? What does CORPORATE BOND mean? CORPORATE BOND meaning - CORPORATE BOND definition - CORPORATE BOND explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, M&A, or to expand business. The term is usually applied to longer-term debt instruments, with maturity of at least one year. Corporate debt instruments with maturity shorter than one year are referred to as commercial paper. The term "corporate bond" is not strictly defined. Sometimes, the term is used to include all bonds except those issued by governments in their own currencies. In this case governments issuing in other currencies (such as the country of Mexico issuing in US dollars) will be included. The term sometimes also encompasses bonds issued by supranational organizations (such as European Bank for Reconstruction and Development). Strictly speaking, however, it only applies to those issued by corporations. The bonds of local authorities (municipal bonds) are not included. Corporate bonds trade in decentralized, dealer-based, over-the-counter markets. In over-the-counter trading dealers act as intermediaries between buyers and sellers. Corporate bonds are sometimes listed on exchanges (these are called "listed" bonds) and ECNs. However, vast majority of trading volume happens over-the-counter. By far the largest market for corporate bonds is in corporate bonds denominated in US Dollars. US Dollar corporate bond market is the oldest, largest, and most developed. As the term corporate bond is not well defined, the size of the market varies according to who is doing the counting, but it is in the $5 to $6 trillion range. The second largest market is in Euro denominated corporate bonds. Other markets tend to be small by comparison and are usually not well developed, with low trading volumes. Many corporations from other countries issue in either US Dollars or Euros. Foreign corporates issuing bonds in the US Dollar market are called Yankees and their bonds are Yankee bonds. Corporate bonds are divided into two main categories High Grade (also called Investment Grade) and High Yield (also called Non-Investment Grade, Speculative Grade, or Junk Bonds) according to their credit rating. Bonds rated AAA, AA, A, and BBB are High Grade, while bonds rated BB and below are High Yield. This is a significant distinction as High Grade and High Yield bonds are traded by different trading desks and held by different investors. For example, many pension funds and insurance companies are prohibited from holding more than a token amount of High Yield bonds (by internal rules or government regulation). The distinction between High Grade and High Yield is also common to most corporate bond markets. The coupon (i.e. interest payment) is usually taxable for the investor. It is tax deductible for the corporation paying it. For US Dollar corporates, the coupon is almost always semi annual, while Euro denominated corporates pay coupon quarterly. The coupon can be zero. In this case the bond, a zero-coupon bond, is sold at a discount (i.e. a $100 face value bond sold initially for $80). The investor benefits by paying $80, but collecting $100 at maturity. The $20 gain (ignoring time value of money) is in lieu of the regular coupon. However, this is rare for corporate bonds. Some corporate bonds have an embedded call option that allows the issuer to redeem the debt before its maturity date. These are called callable bonds. A less common feature is an embedded put option that allows investors to put the bond back to the issuer before its maturity date. These are called putable bonds. Both of these features are common to the High Yield market. High Grade bonds rarely have embedded options. A straight bond that is neither callable nor putable is called a bullet bond.
Views: 1579 The Audiopedia
Edward Altman on Corporate Defaults, Junk Bond Market, and Spreading Risks
 
08:27
Feb 12 – Edward Altman, named as one of the 100 most influential people in finance and considered a leading authority on the high yield and distressed debt market, says we are seeing the peaking of a benign credit cycle in the US. He discusses what that... http://www.financialsense.com/subscribe
Views: 1444 Financial Sense
Corporate Bond Market
 
05:58
Professor Amir Alizadeh-Masoodian introduces this session with a description of a Corporate Bond and the types and forms of such bonds, including medium terms notes, high yield and serials bonds. The session then moves on to explain the associated risks and the role of credit rating agencies and the 'grading' of companies and the credit rating of corporate bonds. Professor Amir ends the lecture with a very informative explanation of the credit rating systems on the Corporate Debt and Corporate Bond innovations. To view the full video, visit our Academy page. https://www.bassetgold.co.uk/academy
Views: 19 Basset & Gold
NYSSA TV Presents with Vinny Catalano: High Yield Bonds
 
09:03
NYSSA's 24th Annual High Yield Bond Conference takes attendees inside the trillion-dollar market in speculative grade debt. Experts from asset management, investment banking, and rating agencies provide the outlook for default rates, returns, and new issuance. Join Vinny Catalano as he interviews High Yield Bond expert Martin Fridson and they discuss the dynamics and future direction of the high yield market.
John Rubino: What Blows-Up First? ‘Almost Junk’ Bonds
 
04:52
Hundreds of US companies are about to have their bond ratings cut to junk. Here’s why that’s a major problem for the markets and the economy… The key insight of the Austrian School of Economics (maybe the key insight of ALL economics) is that the amount you borrow matters, but so does the use to which you put the money. A case in point is US corporate debt, which has changed structurally lately in very scary ways. The short version of the story is that after the US cut interest rates to historically low levels to keep the Great Recession from swapping it’s capital R for a capital D, public companies figured out that they could borrow money for less than their stocks’ dividend yield, use the proceeds to buy back their outstanding shares, and generate free cash flow in the process. And – a nice added perk – the increased demand pushed their share price up and landed their CEOs even bigger year-end bonuses. So that’s what they did, on an epic scale. But – recall the Austrian School insight – the result was soaring debt without any new productive assets to offset the cost. Generally speaking, debt rising faster than operating income equals diminished creditworthiness. So all that borrowing has produced several trillion dollars of debt that’s just one step above junk. Here’s an excerpt from money manager Louis Gave’s take on the subject. Louis Gave at Gavekal Research says the greatest source of potential instability in the years ahead lies with the massive growth of the U.S. corporate debt market, particularly at the BBB-rated (near junk) level. Gave recently told FS Insider that it has far outpaced the economy and could be due for a reset during the next downturn, which is increasingly becoming a concern by other strategists.
Views: 57 Breaking News TV
High Yield Downgrades Outpace Upgrages
 
01:51
In July, more companies with junk ratings were downgraded than upgraded according to Standard & Poor's
Views: 20 anotherfp
The Most Important High-yield Bond ETFs
 
07:41
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do High-yield or junk bonds are those offered by issuers with credit ratings below investment grade. These bonds pay out higher returns or yields which is where they get their name. However, they also face a higher chance of default which is why they were originally referred to as junk bonds. The specific credit rating of issuers whose bonds are considered junk, is rated 'BB' or below with Standard&Poor's, and 'Ba' or below with Moody’s. High-yield ETFs are ETFs composed completely of non-investment grade securities like these. ETFs have also developed as a way for investors to minimize the risk such high-yield offerings inherently carry through diversification. This helps them avoid an all-or-nothing scenario that comes with investing all your capital in a single junk bond or merely a small basket of securities. According to C. Murphy (2016), the falling oil prices seen in 2015 caused non-investment grade bond ETFs to hit a multiyear low in response to fears that such price drops would lead to an increase in defaults. These trends have recently appeared to reverse course enough to legitimately allow investors to turn to high-yield bond ETFs as a viable investment tool once again. In the following, we provide a brief overview of some of the most important junk bond ETFs in the current market environment. The following four high yield bond ETFs (HYG, JNK, BKLN and SJNK) are the largest in the U.S. with regard to the total assets. HYG - The iShares iBoxx $ High Yield Corporate Bond The first major player to make a move in the high-yield bond market was HYG. According to ETF.com (2016), HYG, and JNK – a serious rival, has been among the largest and most liquid high-yield ETFs for years. It has a solid tracking on its core iBoxx index exposure, as it covers the junk bond market's most liquid parts of the U.S. high yield universe. The HYG ETF replicates the overall high-yield market’s performance. Compared to the competition of peer ETFs, HYG’s fees are slightly higher. It’s difficult to make any sort of direct cost analysis between HYG and its competition as HYGs index includes transaction costs while the industry standards others adhere to do not. No doubt, HYG holds an anchor position within the ETF junk bond market. As of the end of February 2016, the HYG US ETF has total assets of around 15,500 USD (mil). The inception date of this ETF was the 11th of April 2007, and its expense ratio is 0.50. (Bloomberg databases). A fund’s expense ratio is determined by dividing its annual operating expenses by the average value of the assets it manages. Any operating expenses incurred are deducted from the fund’s assets and thus from the return investors can expect. JNK - SPDR Barclays High Yield Bond According to ETF.com (2016), JNK is another widely popular, very liquid, high-yield bond fund. Its portfolio is and has been among the largest in the segment for years. JNK’s duration, yield, and credit risk al
Views: 27 ETFs
Investment Grade Bonds
 
03:21
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: 114 TCDRSChannel
Rising High-Yield Issuance Leads To Lower Spreads And Bond
 
03:03
The Global Fixed Income Research group calculates proprietary, daily U.S. composite credit spreads across ratings and industries. As more investors have turned toward high-yield assets for greater returns, the high-yield corporate bond issuance in the U.S. has rebounded handsomely, increasing every month since June and resulting in a total of $34.9 billion in September. However, the greater demand for high-yield assets has resulted in a decrease in yields and spreads. In this CreditMatters TV segment, Associate Gregg Moskowitz reviews the key trends and data points.
Views: 72 S&P Global Ratings
J is for Junk Bonds - The Elite Investor Club's A - Z Guide of Investing
 
04:39
We’ve already reached the tenth letter of our investor alphabet – well done for sticking with me this far! Today we’re going to look at an asset class that has an unappealing name but which could provide returns that are very attractive. J is for junk bonds. We’ve already established that a bond is simply a loan to a government or a company. So what do we mean by a junk bond? It’s a term that came to be used in the nineteen eighties and will forever be associated with one of its pioneers, Michael Milken. One of the risks of being a pioneer is that you get arrows in your back. Ask Milken – he went to jail over junk bonds. But that’s a story for another time.. A junk bond is issued by a company which usually has a not too brilliant credit rating from the official rating agencies who measure these things. The specific definition is a rating of BB or lower from Standard and Poors or BA or below from Moodys. Because they are deemed to be high risk companies, historically they’ve had to offer much higher rates of interest than bonds issued by companies judged to be safe. So they can appeal to investors looking to diversify their portfolio and willing to accept higher risk for higher returns with at least some of their savings. I say historically because in recent years one of the strangest phenomena that I’ve seen is the massive reduction in this so called risk premium. Just like its amazing that Spain or Portugal can borrow money for not much more than Germany or Switzerland, so it is bizarre that many junk bonds now offer only marginally better returns than A rated companies. The biggest attraction for the more sophisticated investor is to find junk bonds issued by a company at the start of a major business turnaround. For example if a new management team is put in place or a new product is launched around the time that the bond is issued. Not only do you lock in a good return, but if the turnaround leads to a re-rating by the credit agencies then the value of the bond can sky rocket in a matter of days. In the junk bond peak of the nineteen eighties companies with few assets would use this paper as a means of acquiring other businesses. Then they’d use the real assets of the acquired business to pay off the debt they took on to fund the acquisition! But as they became more widely used, so the quality of the companies declined and the rate of defaults increased. Many investors got a bloody nose and the junk bond craze died out. But, memories are short. Investors who don’t learn the lessons of history are doomed to repeat them. And that’s what they’re doing right now. If the main bond markets are at risk of a sharp correction when interest rates start to rise again, I can only imagine the scorched earth that will ensue in the junk bond market. And don’t imagine that this is a tiny niche market. Over ninety five per cent of American companies with revenue over thirty five million dollars a year have their bonds rated as junk. They include household names like Delta airlines and US steel. The US junk bond market alone is worth half a trillion dollars. But this is definitely a market for sophisticated investors only. You should only invest money you can afford to lose and no more than the top five or ten per cent of your portfolio. There’s nothing wrong with allocating some of your savings to high risk high return assets. Just make sure you do some due diligence otherwise you might just as well throw darts at the Financial Times…
Views: 1021 Elite Investor TV
Indian high yield bond issues surge to record highs
 
01:08
Easy global liquidity conditions, juxtaposed with optimism surrounding the India story, is allowing a larger number of Indian companies, many of them rated below investment grade, to raise capital in the international bond markets.
Views: 103 Mint
Default Risk and Bond Rating - Finance - What is the Definition - Financial Dictionary
 
02:30
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: 1991 Subjectmoney
RIM - High Yield Strategy
 
03:13
The High Yield strategy seeks to provide current income. Capital appreciation is a secondary objective. The goal of the strategy is to maximize long-term risk adjusted returns relative to the market with an emphasis on minimizing downside risk. The strategy is diversified and invests principally in high-yield corporate bonds rated below investment-grade. The portfolio is managed against the Bank of America Merrill Lynch High Yield Master II Index. http://rainierfunds.com/Strategies/HighYield/Pages/Home.aspx
Debt securities Explained | Bond , Debentures, Muni Bond, Credit rating | Banking Awareness
 
45:56
In this video i am explaining Debt securities in which you will learn about Bond , Debentures, Muni Bond, Credit rating , Bond yield to maturity , face value , discounted bond , premium bond etc. Join Telegram Channel : https://t.me/studysmartbychandrahas Like Our Facebook Page: https://goo.gl/s4l4ZO Follow us on Twitter: https://goo.gl/rvVpDL Join Our Facebook Group : https://goo.gl/fGDu1d ****************************************************** Word Power Made Easy Series : https://goo.gl/6siIR5 Coding- Decoding New Pattern: https://goo.gl/SnrS6M Economics Lectures: https://goo.gl/XUYM30 Reasoning for SBI PO: https://goo.gl/61e9mi Syllogism New Pattern: https://goo.gl/KvzfbJ English New Pattern : https://goo.gl/Ci290c Data Sufficiency: https://goo.gl/NSxIUa All Reasoning Ability Videos : https://goo.gl/o4BwxS All Quantitative Aptitude Videos: https://goo.gl/p8jorg Binary Coding : https://goo.gl/Y2NN5Z Coding Decoding : https://goo.gl/TfxEsy Spotting Error : https://goo.gl/Xdll51 Order and Ranking : https://goo.gl/yM9tYu Static Gk : https://goo.gl/uEIPSL Alphanumeric Series : https://goo.gl/UKOEJF Mensuration : https://goo.gl/WcrD0U Direction Sense : https://goo.gl/3z1qGU Computer Awareness Videos : https://goo.gl/OccvRS Average Aptitude Tricks : https://goo.gl/t84F1l Reasoning puzzle tricks : https://goo.gl/eKnb8C Ratio and Proportion Tricks: https://goo.gl/Zepp2L Partnership Problems Tricks For IBPS PO :https://goo.gl/0pUwqn Time And Work Problems Shortcuts and Tricks: https://goo.gl/qn15Tp Percentage Problems Tricks and Shortcuts: https://goo.gl/krGtAe Time Speed and Distance : https://goo.gl/unELgn Probability : https://goo.gl/FswNBm Mixture and Alligation Tricks : https://goo.gl/TBqbEN Blood Relation Tricks : https://goo.gl/yAOE2C Permutations and Combinations Tricks : https://goo.gl/gSALX0 Quadratic Equations Tricks : https://goo.gl/ZDyDkW Profit and Loss Tricks: https://goo.gl/NOO6p6 Number Series Tricks: https://goo.gl/qcvqej Banking Awareness (Static) : https://goo.gl/JelscL Inequalities Short tricks: https://goo.gl/qQo2kc Speed Maths video : https://goo.gl/7er1OQ Simplification And Approximation:https://goo.gl/KO0ifm Simple & Compound Interest tricks : https://goo.gl/EpK2vf Data Interpretation All Parts : https://goo.gl/x6Xxeo Syllogism All Parts : https://goo.gl/ZwF9LF Complex Circular Arrangement: https://goo.gl/1hPLnN English Important Videos : https://goo.gl/tz0aQs English Vocabulary : https://goo.gl/mzZwRA Reasoning Puzzles : https://goo.gl/xPaatc Machine Input Output Reasoning Tricks :https://goo.gl/1G35uB View All Videos Chapterwise: https://goo.gl/UDGKv0 ************************************************************************************ Download the App: https://goo.gl/mXWbo6 Subscribe : https://goo.gl/p124ci Follow me on Facebook: https://goo.gl/f64AYb Follow me on Google+ : https://goo.gl/FoIvEh Thank You Chandrahas
Views: 37418 Study Smart
What is a Convertible Bond? How Do Convertible Bonds Work?
 
03:08
What is a Convertible Bond? How Do Convertible Bonds Work? - Please take a moment to Like, Subscribe, and Comment on this video! View Our Channel To See More Helpful Finance Videos - https://www.youtube.com/user/FinanceWisdomForYou convertible bond etf convertible bond arbitrage convertible bond funds convertible bond calculator convertible bond definition convertible bonds list convertable bonds reverse convertible bonds convertible bond parity convertable bond convertible bonds definition define convertible bond municipal bonds bonds convertible bond pricing bearer bonds bond market corporate bonds junk bonds what are bonds government bonds treasury bonds zero coupon bonds high yield bonds convertible bond fund what are mutual funds stocks and bonds what is a bond bonds definition investing in bonds corporate bond best convertible bond funds muni bonds treasury bond what is a mutual fund debenture bonds mutual funds municipal bond what are convertible bonds junk bond investment grade bonds savings bonds contingent convertible bonds convertible preferred stock corporate bond rates mutual fund what is my car worth t bills short term bonds convertible bond premium mutual funds definition buying bonds common stock bond fund bond funds bond investing bond trading bond ratings callable bonds what is diversity surety bond mandatory convertible bond bond pricing what is equity bond calculator types of bonds what is culture high yield bond discount bond government bond buy bonds exchange traded funds what is standard deviation how to invest in bonds mutual fund companies t bonds tax exempt bonds saving bonds bonds for dummies convertible securities convertible bond mutual funds bond trader pricing convertible bonds convertible bond etf convertible bond arbitrage convertible bond funds convertible bond calculator convertible bond definition convertible bonds list convertable bonds reverse convertible bonds convertible bond parity convertable bond convertible bonds definition define convertible bond municipal bonds bonds convertible bond pricing bearer bonds bond market corporate bonds junk bonds what are bonds government bonds treasury bonds zero coupon bonds high yield bonds convertible bond fund what are mutual funds stocks and bonds what is a bond bonds definition investing in bonds corporate bond best convertible bond funds muni bonds treasury bond what is a mutual fund debenture bonds mutual funds municipal bond what are convertible bonds junk bond investment grade bonds savings bonds contingent convertible bonds convertible preferred stock corporate bond rates mutual fund what is my car worth t bills short term bonds convertible bond premium mutual funds definition buying bonds common stock bond fund bond funds bond investing bond trading bond ratings callable bonds what is diversity surety bond mandatory convertible bond bond pricing what is equity bond calculator types of bonds what is culture high yield bond discount bond government bond buy bonds exchange traded funds what is standard deviation how to invest in bonds mutual fund companies t bonds tax exempt bonds saving bonds bonds for dummies convertible securities convertible bond mutual funds bond trader pricing convertible bonds What is a Convertible Bond? How Do Convertible Bonds Work? Finance Wisdom For You Finance Wisdom For You A convertible bond issue, like that of other bonds, will state the maturity and the coupon on the bond. A convertible bond also has information about the conversion option, or how many shares will be received for the bond if it is converted. For example, take a convertible bond that sells for $1,000. It has an annual coupon of 7% and can be converted into 100 shares at any time. Each year, the bondholder will receive What is a Convertible Bond? How Do Convertible Bonds Work? Gain the Financial Knowledge You Need to Succeed. Investopedia’s FREE Term of the Day helps you gain a better understanding of all things financial with technical and easy-to-understand explanations What is a Convertible Bond? How Do Convertible Bonds Work?
Yield to Maturity Formula - Approximation
 
18:10
In this tutorial, you’ll learn how to approximate the Yield to Maturity (YTM) of a bond, including how you might modify it to cover Yield to Call and Yield to Put as well as real-life scenarios with debt investing. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:14 Part 1: The Yield to Maturity (YTM) and What It Means 5:27 Part 2: How to Quickly Approximate YTM 10:19 Part 3: How to Extend the Formula to Yield to Call and Yield to Put 13:32 Part 4: How to Use This Approximation in Real Life 16:27 Recap and Summary Part 1: The Yield to Maturity (YTM) and What It Means Yield to Maturity is the internal rate of return (IRR) from buying the bond at its current market price and holding it to maturity. Assumption #1: You hold the bond until maturity. Assumption #2: The issuer pays all the coupon and principal payments, in full, on the scheduled dates. Assumption #3: You reinvest the coupons at the same rate. Intuition: What’s the *average* annual interest rate % + capital gain or loss % you earn from the bond? You can use the YIELD function to calculate this in Excel: =YIELD(Settlement Date, Maturity Date, Coupon Rate, Bond Price % Par Value Out of the Number 100, 100, Coupon Frequency) For example, if you buy a 5% bond for 96.23% of its par value on December 31, 2014, and hold it until its maturity on December 31, 2024, you could enter: =YIELD(“12/31/2014”, “12/31/2024”, 5%, 96.23, 100.00, 1) = 5.500% You could also project the cash flows from the bond and use the IRR function to calculate YTM, but this will work only for annual periods and annual coupons. Part 2: How to Quickly Approximate YTM Approximate YTM = (Annual Interest + (Par Value – Bond Price) / # Years to Maturity) / (Par Value + Bond Price) / 2 Intuition: Each year, you earn interest PLUS an annualized gain on the bond price if it’s purchased at a discount (or a loss if it’s purchased at a premium). And you earn that amount on the “average” between the initial bond price and the amount you get back upon maturity. For example, on a 10-year $1,000 bond with a price of $900 and coupon of 5%: Annual Interest = 5% * $1,000 = $50 Par Value – Bond Price = $1,000 – $900 = $100 (Par Value + Bond Price) / 2 = ($1,000 + $900) / 2 = $950 Approximate YTM = ($50 + $100 / 10) / $950 = $60 / $950 = ~6.3% There are a few limitations: the approximation doesn’t work as well with big discounts or premiums to par value, nor does it work as well with different settlement and maturity days. It also will not handle floating interest rates since it assumes a fixed coupon. Part 3: How to Extend the Formula to Yield to Call and Yield to Put Call options on bonds let companies redeem a bond early when interest rates have fallen, or its credit rating has improved, meaning it can refinance at a lower rate. Usually, the company has to pay a premium to par value to call the bond early. Put options are the opposite, and let investors force early redemption (usually when interest rates have risen, or the company’s credit rating has fallen). Approximate Yield to Call or Yield to Put = (Annual Interest + (Redemption Price – Bond Price) / # Years to Maturity) / ((Redemption Price + Bond Price) / 2) For example, to calculate the Yield to Call on a 10-year $1,000 bond with a price of $900, coupon of 5%, and a call date 3 years from now at a redemption price of 103: Approximate YTC = ($50 + ($1,030 – $900) / 3) / (($1,030 + $900) / 2) Approximate YTC = ($50 + $43) / $965 = $93 /$965 = ~9.7%, which you can estimate as “just under 10%” Part 4: How to Use This Approximation in Real Life Example: You’re at a credit fund that targets a 10% IRR on investments in high-yield debt. JC Penney has a 4-year 7.950% bond that’s currently trading at 91.75 (as in, 91.75% of par value). This seems like an easy “yes”: you get around 8% interest per year + an 8% discount / 4, and ~10% / average price of 96% results in a yield just above 10%. BUT will a distressed company be able to repay the bond principal upon maturity? What if its financial situation worsens? You estimate that in the best-case scenario, you’ll get 65% of the principal back upon maturity (65% “recovery percentage”). The recovery percentage will be 47% and 13% in more pessimistic cases. Scenario 1 Approximate YTM: (8% – 27% / 4) / 78.5% = 1.6% Scenario 2 Approximate YTM: (8% – 45% / 4) / 69.5% = -4.7% So this is almost certainly a “No Invest” decision if these recovery percentages are accurate – even in the Upside Case, we’re far below 10%. RESOURCES: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Yield-to-Maturity-Formula-Slides.pdf https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Yield-to-Maturity-Formula.xlsx
Session 07: Objective 3 - Bond Ratings (2016)
 
01:39
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: 1352 TheFinCoach
Chris Ingram What Are High Yied Bonds  | Ingram Financial Solutions |  661-347-2920
 
04:30
Jump into high-yield bonds. Let's start off with the basics because I know a lot of shows like to talk big and then you're like "I don't even know what that means" then I'd have a context of what the heck you're talking about. Let's just start with basics of what a high-yield bond is and why somebody should care. Okay. Also known as junk bonds. Ahh. We've all heard that before. This is a higher-yielding bond than what you would get from investment-grade bonds, treasuries, or municipals. The difference ... They're not the ones people are throwing away. That's not why they're called junk bonds. No, no, you definitely want to hold on to them. A bond, just backtracking even a little bit further, is I am giving money to a corporation. That corporation is going to sell me a bond and they're going to pay me interest for borrowing my money over a designated time period and at the end of that time period, they're going to give me my money back. I give them $10,000, they're going to agree to pay me 6% a year, and then at the end of let's call it 10 years, they give me my $10,000 back. That's pretty simple. Higher-yielding, or a high-yield bond, because of the lower credit rating of that company, and in this case the S&P ranks bonds and ratings of companies and if they're below a triple B rating, they're considered high-yield or junk bonds. So higher risk. Higher risk, so what you're getting with these lower credit-ratings is a company like S&P, they're coming in and basically saying there's a higher chance of default by that company on this bond. Therefore, by you assuming that higher level of risk, that company is willing to pay you a higher interest rate for your investment. Because they need your money. They need your money, yeah. Ultimately a bond is a loan. It's a loan to the corporation because they couldn't raise capital any other way as a capital risk. Exactly. Got it. Exactly and on average, typical is somewhere between 150 basis points to 300 basis points over what you would get from an investment-grade corporate bond, so in layman's terms that's 1-1/2% to 3% above what you would receive from an investment-grade corporate bond. GE's bond may be paying you 3%, you'll probably get somewhere around 4-1/2 to 6% on a high-yield bond. Okay, so it could be really interesting. It could definitely ... Do you believe that this belongs in people's portfolios so they could pick up a little extra yield here and there by taking a little extra risk. Pretty much every single client I have, if they have a fixed income allocation, or a bond allocation in their portfolio, have some form of high-yield in there. Typically, let's say a client has 40% of their portfolio that is in fixed income, we may have 5 - 10% of that potentially, depending on the client, that would be in high-yield and then the other 35 - 30% would be allocated into investment-grade corporate bonds, short-term bonds, international bonds, different things like that. Yeah and let's be clear. It sounds bad when you call them junk bonds but it's something that you're willing to take a 4, 5, or 6% return on, it probably isn't that risky. No. In the big scheme of things. It's still a bond so yeah, it's not as risky and the other thing is a lot of the way to invest, or the most common way to invest in the high-yield market is to purchase high-yield bond mutual fund, or a high-yield bond exchange traded fund. Now you're investing in this mutual fund but this mutual fund owns 200 different high-yield bonds, so ... You're not going to "Hey, hey Guido, I want a high-yield bond." Yeah, I'm taking a shot on that one company. You're putting all your eggs in that one basket so if you own 200 companies and a couple of them default, it's not going to kill the overall performance of the portfolio and you're going to be able to benefit from the higher yields over ... Ingram Financial Solutions 23734 Valencia Blvd., Ste. 301-A Valencia, CA 91355 USA (661) 347-2920
Financial Markets and Institutions - Lecture 14
 
36:49
automated bond system, bond system, credit risk, default risk, partial default, creditworthiness, credit rating, credit ratings agencies, credit quality, split rating, speculative bond, junk bond, high-risk bond, high-yield bond, investment-grade bond, developing country, developing bond, emerging market, emerging bond, bond index, risk-free yield, investment-grade yield, spread, credit spread, junk spread, international syndicate, international diversification, Eurobond, foreign bond, sovereign bond,
Views: 2214 Krassimir Petrov
Junk Bonds Feed a Hungry Market
 
04:32
U.S. companies with junk credit ratings are piling into the debt markets at a record pace, seizing on some of the lowest borrowing costs in history and strong demand from investors craving higher returns. Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
Views: 169 Wall Street Journal
Gundlach On The High-Yield Market
 
02:23
When it comes to the high-yield bond market, Gundlach says we are all "summer insects" because it has only existed during a secular decline in interest rates. What will the default environment be like when companies have to roll over their debt loads at higher interest rates? --- The fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus, if available, contains this and other important information about the investment company, and it may be obtained by calling 1-800-960-0188, or visiting www.mastersfunds.com. Read it carefully before investing. Mutual fund investing involves risk. Principal loss is possible. Past performance does not guarantee future results. Diversification does not assure a profit nor protect against loss in a declining market. The Litman Gregory Masters Funds are distributed by ALPS Distributors, Inc.
Views: 2962 MastersFunds
WHO Issues Bonds And Why?
 
00:45
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: 95 Pan Pan 1
Definition Of Investment Grade Bonds ✔ Stock Market
 
01:32
Trading Profits of $760 in just 72 seconds! TOP SECRET Formula! Click Here Now! http://tiny.cc/Profits-Auto-Pilot You've probably heard a lot about the brand new ABS software this week, but if not, here's what you're missing: http://tiny.cc/Profits-Auto-Pilot With AutoBinarySignals, you can: 1) Get started in just a few minutes from right now. 2) Can be used by Beginners. 3) Super-Accurate '80-100%' Leading Signals! 4) Uses a Risk/Reward Stabilizing System 5) Take revenge on the brokers who have happily taken all your cash for months. 6) Unqiue MPMIS - Multi-Indicator System 7) Use's a sepcialist Supply/Demand Price Predictor. 8) Auto-Adaptive Profit-Trade Technology™ 9) Earn a reputation as the binary trader "in the know". It is not important if you're just looking to just take a cheap $799 weekend cruise or your trying to create a livelihood from trading and want to earn $5,341.55 a week or even up to $9,711.09 in a day. With ABS, anything is possible for you. Retire With Penny Stocks. Penny Stocks Can Make You Rich! Click Here Now! http://tiny.cc/Penny-Stocks
Views: 1199 Larry
Stock Market Basics: How Bonds Work
 
14:23
If you want to understand the global financial markets you will need to understand how bonds work and their importance. I go over the very basics of bonds, bond ratings, and how bond yields and movements have an effect on the economy. More so, I go over what the moves in bonds can imply about the economy and overall market. Like I said, this is just the basics and I go over everything in very basic detail. Bonds are much more complex and there is a lot to it, however this should give you an idea of what bonds are and how you can use this information to trade off of and build a trading strategy! FREE STOCK TRADING COURSE & CHATROOM!: https://www.ttfrealestate.com/p/free-stock-trading-bootcamp SUBSCRIBE & LIKE for more videos COMMENT below if you have any questions and I will respond or make a video! If you haven't done so follow me on social media! I am most active on Instagram Instagram: http://www.instagram.com/thetradingfraternity Facebook: http://www.facebook.com/tradingfraternity Twitter: http://www.twitter.com/joshanswers If you want to get your real estate license and/or learn how to flip/wholesale you can do so below by joining our state approved course that will qualify you for the real estate test in your state and provide you with the exact training we give to everyone who works with us! Create another source of passive income to fund your trading account! http://www.TTFrealestate.com
Views: 1646 Trading Fraternity
High-yield debt
 
06:41
High-yield debt 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 Contents 1 Risk 2 Usage 21 Corporate debt 22 Debt repackaging and subprime crisis 3 High-yield bond indices 4 EU Member-State Debt Crisis 5 See also 6 References 7 External links 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 o High-yield debt Click for more; https://www.turkaramamotoru.com/en/high-yield-debt-11178.html There are excerpts from wikipedia on this article and video
Views: 9 Search Engine
Fallen Angel ETF Flies High Against Rival Bond Funds
 
01:29
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: 40 VanEck
S&P downgrades South Africa to junk status BB+ from BBB-
 
04:37
S&P Global Ratings has downgraded South Africa's sovereign credit rating to BB+ from BBB-. A rating under triple B by S&P is considered junk and high risk to invest in. The Agency cites the recent firing of its internationally respected finance minister as posing a risk to fiscal policy. The rand fell by as much 2 percent to the dollar in response to the news of the downgrade, while government bonds also weakened sharply. S&P assigned South Africa a negative outlook, saying this reflected its view that political risks will remain high this year. A downgrade to junk would increase South Africa's debt-servicing costs, seen at 11 billion dollars in the 2016/17 fiscal year.
Views: 618 CGTN Africa

Strattera 40 mg beipackzettel yaz
Micardis 40 mg tabletta
Wwe raw 10 november 2019 men's health
Menciona 3 virus de computadora gusano
Nolvadex 10 mg tablets apple