- To generate sufficient investment income in today’s low-yield world, you may need to look at new sources of income.
- Many corporations are currently awash in cash and offer investment opportunities across the capital structure.
- Floating rate loans, corporate bonds, convertible securities and dividend-paying stocks each offer specific advantages.
In today’s low-yield world, advisors and investors alike are looking for income. And while the need for income hasn’t changed, where to look for new income sources has undoubtedly expanded. One of the most compelling sources of income currently is on the balance sheets of cash-rich corporations. To help get the income you need, tap into the strong balance sheets of corporations by investing across the full spectrum of the corporate capital structure.
Investing across the corporate capital structure
Take a new approach to income investing
Not all income investments are the same. Floating rate loans, corporate bonds, convertible securities and dividend-paying stocks each offer specific advantages to help deliver the income you need. To learn more, explore the resources below and return to this blog for ongoing insights into the financial markets, global and economic issues and investor needs and trends.
Related reading: Follow the money
*Securities rated below investment grade (commonly called “high-yield” or “junk” bonds) carry a rating of BB or lower by public rating agencies.
Investing involves risk including the risk of loss of principal.
In general, equity securities tend to have greater price volatility than debt securities. The market value of securities may fall, fail to rise or fluctuate, sometimes rapidly and unpredictably. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole.
There are risks associated with fixed-income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is more pronounced for longer term securities.