For fixed income investors who like this space due to higher yield investment grade credit, a word to the wise: a revamp of capital flows amid an economic slowdown may not be welcome by policymakers.
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For local currency bond holders, Brazil offers some of the best investment grade yield around.
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For one, liquidity remains strong in the corporate bond market, as spreads in both high yield and high grade corporates have remained relatively tight.
Bonds rated BBB (the lowest that qualify for investment grade) yield more, relative to government bonds, than at any time since 1932.
Investment-grade corporate bonds yield 3 percent and riskier "junk" bonds yield just under 6 percent.
Corporate bonds rated BBB are yielding 8%, while their below-investment-grade BB brethren yield 9%.
In seeking to achieve its investment objective, the Fund will invest in senior secured loans, high yield corporate bonds and investment grade-rated collateralized loan obligations.
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Rogge thinks investment-grade and high-yield corporate debt, for example, are attractively priced for a difficult environment.
Guggenheim Investments filled that gap with its BulletShares ETFs, a menu of investment-grade and high-yield corporate-bond funds.
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However, history tells us that various bonds, say high-yield bonds, Treasuries or Investment Grade Corporates, tend to move together.
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The multitudes of bond haters continue to screech about how overvalued Treasurys and investment-grade and high-yield corporate bonds are, but some split-rated bonds deserve to be in your portfolio.
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Specifically, an Obama victory will stoke fear of higher taxes on dividends and ordinary income, and drive a rotation out of investment grade and high-yield corporate bonds and into municipal bonds.
Despite the rather dour comments from Lockhart, the tide appears to be shifting in the corporate bond market as liquidity has begun to return and both investment-grade and high-yield premiums over Treasury yields have begun to narrow in recent sessions.
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Investors in American investment-grade bonds get the same yield as they would for junk in Japan.
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Corporate bonds followed along: the yield on long-term high-grade railroad bonds in the United States was 3.18% in 1900.
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The team thinks all of these factors present a catalyst for investors to enjoy the higher current income versus investment grade and potentially for the yield advantage to compress further leading to modest capital appreciation.
The other metric that we follow very closely is credit spreads, and this is the difference between the yield between the sub-investment-grade bonds and the ten-year Treasuries, where the recent monthly returns in the stock market is favorable, when credit spreads are normal, compared to when spreads are very wide.
There is the further issue of the quality of coal, since the majority of the world reserve is of lower thermal quality than the top-grade anthracitic coal, and will yield less energy per tonne either burned directly or in the form of syngas in ICGC plants.
Today's dividend yield is uncompetitive with municipal paper and low-grade corporates and is subject to cutbacks like GE's.
We looked back over the period stretching from January 1, 1997 to February 29, 2012 to see how movements of stocks, Treasuries and lower-grade fixed income investments like high-yield bonds and bank loans, related to each other.
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Even junk issues have been inhaled by investors desperate for any yield pick-up over puny Treasury and high-grade bond yields.
Low investment-grade paper still gets my money because the yield disparity with 10-year Treasuries, at least 300 basis points, is still attractive if you believe Treasury yields stick near 3% for a year or two.
The JPMorgan Domestic High Yield Index is an index composed of non-investment-grade corporate bonds.
Active managers in intermediate-term securities fared better than managers in long-term securities, and managers in investment grade bonds fared better than managers in high-yield securities.
The market now expects domestic Japanese Government Bond (JGB) holders to cash out and seek higher yield solace in U.S. Treasuries and other high-grade foreign bonds.
In the year to date, loans are running in the middle of the pack, trailing equities and high-yield bonds, while beating 10-year Treasuries and investment-grade corporate bonds.
Another bull on high-yield bond funds is Jack Bowers of Fidelity Monitor, who is recommending Fidelity Strategic Income (nasdaq: FSICX - news - people ), which has 40% in high-yield debt, tempered by 60% in foreign and U.S. investment grade and government issues.
Investment-grade corporate bonds, which carry only a sliver of default risk, now yield an average 1.8 percentage points more than Treasurys, up from 1.3 points in early 2000.
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