Readers of my blog will know by now of my preference for short-term, high-quality bonds.
If credit conditions deteriorated, active investors could move to very high quality bonds, including Treasurys.
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The larger segment is attractive and highly resilient, composed of higher quality bonds with strong credit profiles.
Maintain exposure to assets that can benefit from both deflationary (high credit quality bonds) and inflationary (equities, commodities) pressures.
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This is particularly valuable when dealing with lower-quality bonds issued by smaller companies.
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Higher yields are attainable by investing in lower-credit-quality bonds and foreign bonds, but as yields rise, so do the risks.
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Insurers price the product with the expectation they will earn substantial investment income, primarily in high-quality bonds, in the intervening years.
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Meanwhile, the fraction of respondents that favor commodities and high quality bonds over other asset classes fell further to 7% and 10%, respectively.
"Structurally this could become a technical tailwind for Asian credit, " and high-quality bonds are likely to be the first beneficiary, he said in a recent report.
While municipals have undergone significant changes, with some added risks, since the financial meltdown of 2008, massive defaults on quality bonds are not going to happen.
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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.
Make a top-level asset allocation of 40% to short term, high quality bonds the balance to a diversified global equity portfolio of perhaps 10 to 12 asset classes.
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And the new bonds creditors received in the restructuring are only a small part of a package that includes high-quality bonds issued by the euro zone's bailout fund.
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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Mr. Gross has shifted gears in recent months by buying Treasury bonds, mortgage-backed securities and some other high-quality bonds, essentially a bet the Federal Reserve's monetary stimulus will keep yields low.
It provides high current income, and therefore is probably best thought of as a high-income asset class, perhaps a substitute or something that would go along with an investment in high dividend equities and obviously more high-quality bonds.
That is, only buy high quality municipal bonds and sell the low quality munis you own.
This means making sure high-quality government bonds, say, are not needlessly tied up as collateral for trades where lower-quality assets would be acceptable.
Then as you age, migrate your assets out of stocks and into funds that own high-quality corporate bonds and government-issued Treasuries.
Gary Jenkins of Deutsche Bank points out that, historically, investors have been overpaid for the default risk on high-quality corporate bonds.
First is pension liabilities: under the new rules, a company's future obligations will be calculated using the yield on high-quality corporate bonds.
These oxymoronic high-quality junk bonds provide good yields with less downside risk.
Joslin is tapping on the brakes, going for a riskless deflation hedge in the form of U.S. Treasury securities and high-quality corporate bonds.
The culprit is extremely low interest rates on high-quality corporate bonds, which play a critical role in assumptions for calculating pension plan obligations.
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After the crash, invest in 30-year Treasuries and quality corporate bonds.
Investors have been chasing after high-quality corporate bonds despite low yields.
Even good-quality corporate bonds are offering meager interest rates these days.
If bond prices continue to fall, the enthusiasm to take on more risk in equity will wane as investors seek similar returns in the higher credit quality treasury bonds.
Same with lower-yielding but higher-quality corporate bonds.
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