Questions tagged [high-yield]

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Credit Investing - Best Metric To Compare Spread / Yield Per Unit of Risk

Do people investing in credit (leveraged loans / high yield) that want to compare different industries / different valued businesses ever look at spread per turn of LTV (or the inverse, 1/LTV = asset ...
aethiogo's user avatar
11 votes
5 answers
7k views

How are the banks behind high yield savings accounts able to pay such high rates?

How are the banks behind high yield savings accounts able to pay such high rates? Where does their yield come from? Do they invest in just high yielding treasuries or junk bonds, or other high ...
Katsu's user avatar
  • 515
2 votes
1 answer
68 views

Bond Chart Prices and Very High Yields [closed]

Two questions on bonds: Why is finding stock prices and charts so easy whereas for corporate bonds is so hard? Do you know a good website like TradingView that does the same for corporate bonds (a ...
98418's user avatar
  • 21
-1 votes
1 answer
157 views

How to find higher yield investments if I'm 20+ years from retirement? [closed]

I am 37 and don't plan on using any of this money until I'm at least 50. Currently I'm using RobinHood and have mimicked Warren Buffet's top stock picks. I'm currently looking into hedge funds day-...
Jacksonkr's user avatar
  • 943
0 votes
0 answers
50 views

How is it not illegal and more importantly ethical for Additional Tier-1 bonds to be written off in case of rescue or liquidation of the company?

Additional Tier-1 (AT-1) bonds issued in India, as I understand is regulated by RBI, the central bank in the country. It seems if the company faces severe losses,the RBI can then activate a Point of ...
schizoid_man's user avatar
0 votes
2 answers
194 views

Short-term Corporate Bond has Higher Yield than Long-term. Why is This?

I looked at the past yields of Sears Holdings (before chapter 11) and the Yield to Maturity (YTM) were all as I would expect. I look at current yields of JCP and they are pretty much as one would ...
user170226's user avatar
2 votes
5 answers
597 views

Frequently Moving Money Between Checking and Savings

I'm currently carrying a balance in my checking account, much of which I feel is going to waste, since its not being "invested". The overall total balance in my checking account isn't growing much if ...
roger21's user avatar
  • 23
4 votes
1 answer
354 views

Bonds near maturity better than 3-month CDs? Need help explaining Bond stats

I have a ton of money in a checking account earning 0% interest. I thought about buying 3-month CDs with 2.25% interest (or 0.56% per 3 months), something short term so my money isn't locked up for ...
peppy's user avatar
  • 53
0 votes
2 answers
514 views

Do Junk Bonds have higher coupon rates then investment grade/treasury bonds

I'm trying to understand how junk bonds would incite investors to purchase them, did they offer higher coupon rates then the prevailing market or were they simple priced cheaply in order to ensure a ...
user5246445's user avatar
3 votes
1 answer
160 views

Are High Yield Bonds issued at a premium or discount?

Will the demand for a higher yielding security cause the high yield bond to be issued at a premium, or will the risk of default and other risks cause the bonds to be issued at a discount to face value?...
Skrrrrrtttt's user avatar
7 votes
1 answer
119 views

Is it clever to balance a portfolio across different account types?

I thought about how to balance my portfolio between low-risk and high-risk investments and at the same time between IRA, IRA Roth, and normal investment accounts. (This question is not about how to ...
Aganju's user avatar
  • 37.7k
2 votes
1 answer
87 views

How is P/E ratio of a bond fund calculated?

According to the Google search of NYSEARCA: HYG, that fund has a P/E ratio of 20.89. Which makes no sense, since bonds have yields (this one currently returns 5.04%), not earnings. So, what does ...
RonJohn's user avatar
  • 50.7k
2 votes
2 answers
335 views

Which spot Treasury bond is used to calculate this high-yield spread?

The link below shows the BofA Merrill Lynch US High Yield Option-Adjusted Spread. I am trying to have a better understanding of high-yield bonds before I invest in them. https://fred.stlouisfed.org/...
curious's user avatar
  • 2,167
0 votes
1 answer
276 views

High risk investment [closed]

I have a spare £500 I do not mind losing too much. But, I do not just want to throw it away. I have found high risk investments like this one from JP Morgan Chase, and over the past few years all has ...
k1308517's user avatar
  • 209
4 votes
1 answer
353 views

Why is the bond market tanking? [closed]

Bond spreads have moved up significantly this year, with a sell-off this past week. Some of the underlying factors seem to be well-known in the market for a while. Why the sell-off now?
Phenicemenace's user avatar
3 votes
2 answers
179 views

Considering investing in CHN as a dividend stock

I've been looking at investing in another dividend stock, and I have been using dividata.com to do some research. I have found several stocks that I am interested in that have a roughly 9% or 10% ...
David's user avatar
  • 131
2 votes
1 answer
1k views

Automating high- bank or credit union requirements (e.g. X debit card transactions per month)

Banks (and credit unions, etc.) that offer high interest typically require the customer to take some kind of action every month, such as performing 10 debit card purchases. I'm wondering if people ...
user541686's user avatar
  • 3,369
4 votes
2 answers
1k views

What is the risk to a high-yield corporate bond fund versus an investment-grade corporate bond fund?

The yield for HYG, a high-yield (i.e. junk) corporate bond ETF, is currently 5.72% versus 3.56% for LQD, an investment-grade corporate bond ETF. Of course, higher yield generally means higher risk. ...
Craig W's user avatar
  • 15.9k
8 votes
3 answers
1k views

What factors affect the yield and "trade value" on an exchange of a junk bond ETF?

In an effort to further my grasp of financial derivatives available for speculation and losing money, I realize I need further understanding of how "high-yield corporate", aka junk bond ETF's, "work" ...
Glorified Plumber's user avatar
7 votes
2 answers
560 views

Stocks vs. High-yield Bonds: Risk-Reward, Taxes?

Assuming one is looking for a fairly high-risk, high-reward investment, what are the advantages and disadvantages of a diversified stock portfolio (e.g. an S&P 500 index fund) vs. a diversifed ...
dsimcha's user avatar
  • 747
3 votes
1 answer
1k views

Anything wrong with American Express "Personal High Yield Savings" account?

I got a letter through the mail from American Express offering me a sweet 1.3% interest rate with an FDIC-insured savings account. I currently have a business savings account with a princely 0.35% ...
Colen's user avatar
  • 537
2 votes
3 answers
138 views

What are a few sites that make it easy to invest in high interest rate mutual funds?

What are a few sites that make it easy to invest in high interest rate mutual funds? (12%+)
Tyler Gillies's user avatar