Put another way, a poor quality bank bond that no one wants because the bank is in trouble is suddenly high quality debt if the Fed is prepared to swap it for a Treasury bond.
Michael Milken argues persuasively that today's low-quality bond is tomorrow's prime risk and vice versa.
In the bond sector, quality beat junk and Treasuries beat munis, but not tax adjusted.
Low rates are also pressuring life-insurance companies, which rely in part on returns from high-quality bond investments to pay their obligations.
There is no magic that insurance companies can do to enhance long term returns on a bond portfolio, and given the costs involved most investors would be far better served to invest in a short-term, high quality bond index fund.
He believes that worldwide structural changes (increased mobility of capital and labour, the greater credibility of central bankers as inflation-fighters, the preference of ageing baby-boomers for fixed-income securities) have altered the equation, and that top-quality bond yields are, if anything, headed down.
Just take a look at what happened to the SPDR Barclays High Yield bond ETF ( JNK) compared to the high-quality Vanguard Total Bond ETF ( BND) during the heart of the last recession.
Of late, however, credit quality in the bond market has been declining.
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But even if you are willing to accept a higher degree of risk, cushion your downside by including some quality bonds or bond funds in the mix.
The prospect of downgrades have also wracked the companies' stocks because a bond insurer without the highest-quality rating would have trouble winning new business.
In practice, plans use a rate based on high-quality long-term corporate bond yields, currently just above 6%.
The best strategy is simply to diversify your bond holdings while paying attention to the quality of what you are investing in.
Since the cut, according to Martin Fridson of Merrill Lynch, the corporate-bond market has reopened for better-quality borrowers, though it is not yet clear whether money is available for those who most need it.
At the same time dozens of deals like the Chrysler and Alliance Boots loans, have been postponed or canceled in the weeks since investors started getting spooked about credit quality concerns in the mortgage bond markets.
Of course, second-lien debt is a niche product for issuers that require higher leverage than is usually available in the first-lien market, but that in many cases are locked out of the regular-way high-yield bond market because of size, credit quality, or complexity.
Guillaume would have been a bond of union, he always had a quality of keeping people together, and now that he was gone everybody ceased to be friends.
The PIMCO Total Return Exchange-Traded Fund (BOND) is a diversified portfolio of high quality bonds that is actively managed in an effort to maximize return in a risk-controlled framework.
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Over the past year, as interest rates have inched up and there have been concerns about credit quality, the price of some bond funds has declined as these risks all reared their heads.
The bond comes from the individuals in the relationship and the quality of their relationship.
Lisa Goldstein, the head of health care bond ratings at Moody's, argues that better quality control can improve hospitals' financial performance.
In these four periods of rising rates, managers had the acumen to navigate troubled waters by various techniques of managing bond types, sector allocation, duration, maturity, credit quality, country, and currency.
Rates fell this week, and high-quality issuers were able to raise finance in municipal-bond markets.
The report also compares the U.S. perspective with that of other countries that have adopted or are in the process of adopting IFRS. For example, a previous ACCA study of IFRS adoption in Europe found that the benefits of adoption were greatest in countries with high institutional quality and where stock markets are more important to finance than bond markets or banking.
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But for all the undoubted ability of players like Scott Styris, Jacob Oram and Shane Bond, New Zealand are a side which relies more on hard work than star quality.
As hospitals bond together in ever larger networks, their negotiating leverage rises much more quickly than their quality of care.
Perhaps the big goal line stand had to do with the dollar or bond yields rising here in the U.S. (signaling that there was no panicked flight to quality occurring).
Then we have the inverse snobbery, the one that praises popularity and disdains quality, where the book ceases to be literature and becomes simply a cultural artefact over which people bond, either in love or hatred.
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