Ads
related to: what are high quality bonds with intermediate maturities different
Search results
Results From The WOW.Com Content Network
To understand the types of risks associated with bonds, it helps to know that bonds are often placed into two main categories: investment-grade and high-yield bonds. Investment-grade bonds are ...
In a bond ladder, an investor buys bonds with staggered maturities – say, one year, two years, three years and so on – and when a bond matures, the principal is reinvested at the top of the ...
This bond ETF gives investors exposure to bonds across the spectrum of maturities – short, intermediate and long. ... ETFs with lower-quality bonds, such as high-yield bonds. ... bit different ...
An important property of bond funds is the rating of the bonds they own. Funds may be rated from high to low credit quality. The quality of a fund is the average of the bonds owned by the fund. Funds that pay higher yields typically own lower quality bonds. Like stocks, the price of high-yield bonds is subject to fashion.
The Bloomberg US Aggregate Bond Index, or the Agg, is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States. Investors frequently use the index as a stand-in for measuring the performance of the US bond market .
Market sector measured: indices can be composed of government bonds, municipal bonds, investment grade corporate bonds, below-investment-grade (high-yield bonds), mortgage-backed securities, syndicated or leveraged loans. Indices may also consist of bonds within a certain range of maturities, e.g. long term, intermediate term, etc.
The Vanguard High-Yield Corporate Fund invests in medium and lower-quality corporate bonds. The fund managers invest in what they consider to be higher-rated junk bonds.
There is a time dimension to the analysis of bond values. A 10-year bond at purchase becomes a 9-year bond a year later, and the year after it becomes an 8-year bond, etc. Each year the bond moves incrementally closer to maturity, resulting in lower volatility and shorter duration and demanding a lower interest rate when the yield curve is rising.