Sentences with phrase «because bonds offer»

Because bonds offer a fixed - rate of interest, holders can more easily compare potential gains (or losses) due to interest rate environment fluctuations.

Because bonds offer fixed interest payments at regular intervals, they may be appropriate if you want regular income from your investments.

Not exact matches

Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.

Advisors should give fixed indexed annuities (FIAs) a serious look because FIAs offer a compelling story in an era of low bond yields, according to Roger G. Ibbotson, one of the most recognizable names in finance.

Because they are considered to have low credit or default risk, they generally offer lower yields relative to other bonds.

Because of these features, convertible bonds offer some of the potential upside of holding equities, combined with some of the downside protection of owning bonds.

Higher yielding fixed income offers those higher yields because the issuers of the bonds have a better chance of defaulting on their debt.

Because Treasuries are safe, they offer a lower return than riskier debt instruments, such as corporate bonds.

Start - up costs are the one drawback to bonds because individual bonds are generally more expensive than individual shares of stock and financing is not usually offered.

This is because, as I write in my new Market Perspectives piece, «Removing the Constraints: Understanding the Risks and Opportunities of Unconstrained Bond Funds,» unconstrained funds offer the potential to mitigate some of the challenges enumerated above.

The rise in Canada has been a bit more muted — at about 60 - 70 basis points — says Gulati, because Canadian bonds were offering better returns to begin with and «the U.S. has more upward room to go.»

Money market accounts offer higher yields because they are linked to low - risk bonds and other relatively liquid instruments.

It therefore makes sense for financial institutions» bonds to offer less yield than before because their business is considerably less exposed to leverage and risks.

But premium bonds could actually offer a good deal because they may come with higher coupon rates and greater yield in the long run.

Dividends, the share of profits that some companies distribute to investors, have been increasingly important because bonds still offer relatively low interest payments and stock prices have been flat.

Many dad or other male caregivers are interested in using baby carriers both because it's convenient and because it offers a wonderful opportunity to bond with baby.

Because even dads that aren't breastfeeding right, they get bonding with their babies but it is kind of extra special that you are able to do that above and beyond what most people even know is even available so I think that's so wonderful that you were able to offer that as an option for you and your baby.

But nursing is also really good for baby's emotional development, both because of the close physical bond baby forms with Mom, but also because it offers baby a healthy «home base» to return to when he is tired, fussy, or begins adventuring past Mom's arms, getting boo - boos, etc..

Because Teens Just Want To Have Fun Designed exclusively for young spa - goers and families, Ginger Lily offers the perfect opportunity for special one - on - one bonding with your tween or teen.

Many pediatricians, encouraged by such grass - roots groups as La Leche League, now believe the breast is better than the bottle because it offers baby greater immunity, better regulates weight and allows for deeper bonding with the mother.

Because of the lack of competing bond offerings, he said, the Erie County control board, which was borrowing money on the hospital's behalf, received an excellent interest rate.

It is harder for molecules to stick permanently to a smooth than to a rough surface, because a smooth surface offers fewer sites where a new molecule can bond to several of the present surface molecules at once.

This is because, as I write in my new Market Perspectives piece, «Removing the Constraints: Understanding the Risks and Opportunities of Unconstrained Bond Funds,» unconstrained funds offer the potential to mitigate some of the challenges enumerated above.

Though municipal bonds generally offer lower interest payments compared with taxable bonds, their overall return may be higher because of their tax - reduced (or tax - free) status.

Because of this added flexibility, convertible bonds generally offer lower interest rates than similar nonconvertible corporate bonds.

Because bonds with longer maturities have a greater level of risk due to changes in interest rates, they generally offer higher yields so they're more attractive to potential buyers.

Because municipal bonds seek to provide tax - free income, they have generally offered higher yields than their taxable counterparts.

Managed futures strategies have the potential to deliver positive returns in both rising and falling markets, and may offer diversification benefits because of their historically low correlation to stocks and bonds.

(Bond funds, for example, are called index funds simply because they offer the low management costs commonly associated with index funds.)

But their interest - rate sensitivity can be lower because they typically offer higher yields than many other types of bonds.

While bonds offer holders a creditor stake because they are lenders for the company, stockholders have an equity stake, meaning they are owners.

They offer low - risk inflation protection because the bond's coupon payments increase with inflation, as measured by the Consumer Price Index.

Because the bonds carry less risk, they offer lower interest rates than unsecured bonds.

Long term bonds usually offer a higher interest rate because of the unpredictability of the future.

When bond prices decline, the interest rate increases because the bond costs less, but the interest rate remains the same as its initial offering.

Although these bonds offer a lower interest rate than corporate bonds, because of tax - exempt advantages, munis could bring in an after - tax return higher than a corporate bond.

It is invested primarily in the credit market, not so much in government bonds because government bond yields are so low, but we're looking for absolute returns even if interest rates go up, so some of the portfolio, a significant piece of it actually, is floating rate, so if interest rates go up, you just get higher cash flows, which will support higher returns, and the rest of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.

High - yield bonds (sometimes referred to as junk bonds) typically offer above - market coupon rates and yields because their issuers have credit ratings that are below investment grade: BB or lower from Standard & Poor's; Ba or lower from Moody's.

A regular IRA, on the other hand, offers the potential to earn much higher returns because you can invest those funds in stocks, bonds, mutual funds, and more.

The concern here is that ultra low yielding bonds can't decline sustainably below 0 % and are therefore unlikely to provide much downside protection in the future whereas environments like the 2008 financial crisis and before offered investors far more protection because yields were higher.

Of course, because bonds carry less risk, they also offer less reward in the form of how much you can earn on an investment in them.

Advisors should give fixed indexed annuities (FIAs) a serious look because FIAs offer a compelling story in an era of low bond yields, according to Roger G. Ibbotson, one of the most recognizable names in finance.

I've learnt recently (thanks to Investing Intelligently and Efficient Market Canada) that bond investors should keep fund duration as short as possible because longer - term bonds offer little extra return for taking a higher interest - rate risk.

Because yield curves have historically offered good indications for economic changes, reflecting the bond market's consensus opinion of future economic activity, levels of inflation and interest rates, they can help investors make a wide range of financial decisions.

Known as «high yield» because of the rewards offered to those who are willing to take on the additional risks of a lower - quality bond.

One more question re: your 401k... You mentioned you max it out and use the Target 2045 fund — is this because VTSAX is not offered through your plan, or do you prefer to use it since it has a bond allocation and will progressively get more conservative over time?

Because we offer an array of bonds from leading providers, the tools, and on call support — at low prices.

Because of these features, convertible bonds offer some of the potential upside of holding equities, combined with some of the downside protection of owning bonds.

This is significantly less than the interest rates of bonds, although stocks offer, in average, better returns, because they are more volatile and investors demand a premium in exchange for that uncertainty.

However, because it is Fidelity, they do offer a full range of investment options, from commission free ETFs, to mutual funds, stocks, bonds, and more.