Fixed Income

Investment Grade Bonds

Fixed Income instruments with Investment Grade credit rating can include Treasuries, Agencies, Municipals, Corporates, Floaters, Convertibles and Perpetual bonds.

Foreign currency denominated Bonds

Bonds issued either inside or outside the United States by domestic or foreign entities in a currency other than US dollars.

Emerging Market Bonds

Sovereign bonds and fixed income securities, denominated in local or foreign currencies, issued by private and public companies in emerging market nations. Yields and risk are generally higher than comparable securities in developed nations.

High Yield Bonds

Securities rated below Baa by Moody’s or BBB by S&P that are considered speculative. High yield bonds, also known as junk bonds, do not qualify as investment grade due to their higher probability of default.

Disclosure: Interest rate risk is common to all bonds, even U.S. Treasury Bonds. A bond’s maturity and coupon rate generally affect how much its price will change as a result of changes in market interest rates. A principle of bond investing is that market interest rates and bond prices generally move in opposite directions.  “When market interest rates rise, prices of fixed-rate bonds falls”