Questions tagged [high-yield]

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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 yielding things?
Katsu
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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" as they say. The examples I have in mind are JNK…
Glorified Plumber
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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 get money into or out of IRA and IRA Roth - assume…
Aganju
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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 high-yield (junk) bond portfolio? The most important…
dsimcha
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Does it matter which high-Interest savings option I chose?

There are many, many options for high interest savings banks. I am saving up for a house and do not want to put my money into anything besides something extremely safe. My cash is just sitting in my bank. I search for "High Interest Savings…
Phil
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Why is the bond market tanking?

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?
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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. But don't these yields already take into account…
Craig W
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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 long in case I need it. However, I found high-yield…
peppy
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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
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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% rate which is apparently the best Wells Fargo…
Colen
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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% dividend yield. I also found The China Fund (NYSE:…
David
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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 that stat mean?
RonJohn
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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…
curious
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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 have found any way to automate the satisfaction of…
user541686
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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%+)
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