Profile image
By Global Economic Intersection
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

The Importance Of Quality In Diversification

Saturday, February 18, 2017 22:35
% of readers think this story is Fact. Add your two cents.

by Gene D. Balas

When investors diversify their equity portfolio by adding bonds, not all bonds are created equal in this regard. Certainly, corporate bonds, including both high yield and investment grade, do pay a yield premium over Treasuries. If you’re after income, that might be a worthwhile consideration, but if you’re focused on providing a means of diversification to stocks, you might want to emphasize quality. And that means Treasuries, as even AA-rated corporate bonds can impede levels of diversification vis-a-vis bonds that carry no credit risk, as we will see.


Read more …


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.