Spread to 2007 Levels on ThinkAdvisor.
Dan Crowley, head of distressed debt and Anthony Bugliari, head of US high-grade bond
trading, are to leave the bank.
"The high-grade bond
market feels satiated with paper," Bank of America Corp.
This is the kind of paper that can be recycled into high-grade bond
However, given that the tests focus on comparing low-grade with high-grade bond
fund returns, the relevant question is whether there is reason to believe there is a bias in the difference between the two returns.
In discussing his study of low-grade and high-grade bond
performance, Regan (1990) reports that the low-grade bond portfolio performed consistently well except during a recession, that junk bonds displayed the same seasonal pattern as second-tier stocks, including the "January effect;" that both low-grade stocks and low-grade bonds reflect the riskiness of the individual firm rather than changes in the general market, that the yield spread was not useful in timing business cycles, and that junk bonds behaved more like equities than like Treasury bonds.
Tucker said, 'The reopening of high-grade bond
markets has definitely been encouraging.
Yields on high-grade bonds
have risen half a percentage point since the start of 2018, pushing up the cost of debt financing and lowering issuance overall.
While Kazakhstan is unlikely to find itself in urgent need of the frozen money soon, the freeze may limit its ability to manage a large part of the fund's portfolio, which is mostly invested in high-grade bonds
New issuance of US high-grade bonds
could decline 17 per cent, while net supply drops 34 per cent.
"Our new product was designed to meet demand from financial institutions looking for high-grade fixed-income exposure [weighted average portfolio rating of 'A-' and above], with a higher yield than those offered by high-grade bonds
. The breadth and depth of the regional bond market has improved significantly over the past two years, thanks to a wider choice of regional sovereign investment-grade bonds, and investors are looking for more ways to access the market," said Al Hashemi.
Because interest rates on high-grade bonds
have been so low for so long, insurers have less investment income they can use to hold down premium costs.