Sentences with phrase «if bond rates»

If bond rates are currently set at 10 percent, that means -LSB-...]

Not exact matches

He says that if you can get only a 2 % return on bonds — rates we're seeing today — and 5.5 % yields on blue - chip stocks like BCE, it makes sense to overweight stocks, no matter what your age.

If interest rates rise and push that risk - free rate of return higher, then those dividend stocks and high - yield bonds are vulnerable.

Ultimately these green bonds will only truly be successful if they allow the province to finance transit projects at a lower interest rate than would otherwise be the case.

If you invest at all in stocks and bonds, even if you just have a 401 (k), this Fed rate hike will be important to you and your portfoliIf you invest at all in stocks and bonds, even if you just have a 401 (k), this Fed rate hike will be important to you and your portfoliif you just have a 401 (k), this Fed rate hike will be important to you and your portfolio.

As Poloz indicated in Toronto, if something went terribly wrong tomorrow, he could cut the benchmark interest rate by a full percentage point before trying something else, such as creating money to purchase bonds.

While investors will have to find stocks with higher yields, pay more for them and take on more risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal for retirement income.

(If I owned, for example, $ 1,000,000 of «AAA» - rated bonds from a large US company I could very easily sell them at market price right now.

And so what Marks is saying is that it does not matter if your portfolio holds a bunch of, say, «AAA» - rated corporate bonds and highly - rated government bonds like US Treasuries, which are, in theory, highly liquid assets.

If this all occurs while rates are rising, which of course means bond prices are moving in the opposite direction, we could surely see a very sloppy bond market over the next year or two.

However, if rates are about to head higher for an extended period of time, investors may want to consider shortening up the maturities in their bond portfolios.

Japan has already lost its AAA status, and Fitch Ratings recently warned it might downgrade the country's sovereign debt if it issued more than the planned ¥ 44 trillion in bonds next year.

Others have noted that if the Fed continues raising short - term rates while long - term rates remain stalled, it could turn the shape of the bond yield curve upside down, a typical signal of recession.

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.

These corporate fixed - income instruments pay a dividend that is taxed at a more favourable rate than regular bond interest, but you only benefit from this if they are held outside of a registered account.

If Yellen's Fed fails to convince Wall Street about the policy path, a rate increase could trigger financial turmoil of the sort seen in 2013, when investors were caught off guard by the central bank signaling an end to its bond - buying program.

Chair Janet Yellen and others have indicated that the balance sheet runoff should not be disruptive to markets, though some fear that it could push up rates if demand for the bonds isn't strong.

Investors are set to snap up the bonds with an interest rate of less than 3.4 %, the Financial Times reported on Thursday, or about half the rate Sprint would have had to pay if it issued the bonds without any backing.

«In a bond mutual fund, you're invested in a pool of bonds with no set maturity date, which means more risk if interest rates rise.»

If interest rates do increase, which punishes dividend stocks, the funds can shift to bonds.

If at this point we found that using an interest rate of 6.8 % in our calculations did not yield the exact bond price, we would have to continue our trials and test interest rates increasing in 0.01 % increments.

A carry trade is typically based on borrowing in a low - interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest or deploying proceeds into assets — such as stocks, commodities, bonds, or real estate — that are denominated in the second currency.

They likely worried that rates would rise even more, and jeopardize the economy, if they reduced the bond - buying.

If interest rates rise, market prices of existing bonds will typically decline, despite the lack of change in both the coupon rate and maturity.

In our terms, there are value investors for Treasuries 10: There are lots of natural buyers and sellers of interest rates, and if Treasury bonds crash dramatically someone will step in to buy them.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled.

If the government can guarantee certain savings in bank accounts through the F.D.I.C., why not establish a program that would require that every employee own a regulated block of stock (Retirement Account) made up of stock in the company the employee works for and, so the employee will not have all his retirement eggs in one basket, include in this retirement basket high rated bonds and stocks from other non-competing employee - owned companies?

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close

Tell me if you have heard this one before: When interest rates go up, bond prices go down.

If you are invested in bonds or bond funds, make sure that the objectives, maturity length, yield and credit ratings make sense for your particular goals and circumstances.

For example, if you hold a bond paying 5 % interest and market rates rise to 6 %, investors would need to pay less for your bond to be compensated for the lower than market rate.

If you're in for the long haul and want a guaranteed rate of return with no value loss from an investment, a T - bond might be a perfect solution.

Therefore, if rates rise, investors in the bond funds and ETFs will experience price declines commensurate with the funds» durations.

If interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returneIf interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returneif you hold the bond nothing (other than the scenario of a default) happens & your principle is returned.

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

That is, it can go out, issue bonds at rock - bottom rates, then lend money to its own subsidiaries at rates the subsidiaries couldn't get if they were stand - alone enterprises.

If you try to redeem your bond to take advantage of rising rates you won't get as much for it.

And when the Fed eventually does allow rates to rise to more normal levels — even if that really isn't until 2014 — bond prices will fall significantly.

Loading the Fed up with bonds creates the danger of big losses for the central bank if interest rates rise (which causes bond prices to fall).

Since 2013, many investors have shunned this bond index, believing the Agg's higher duration or interest rate risk left portfolios exposed to large losses if interest rates shot up.

If long bond inflation concerns are indeed correct (which I believe they are), the Fed will have to ratchet short term rates at a faster pace which may re-invert the yield curve.

If rates start to rise, bond volatility will be exacerbated by higher durations.

So if you own a mutual fund full of 30 year bonds, if interest rates go up one percent, your investment will lose 20 % in value.

We assumed that in each period a 30 - year bond is issued at prevailing interest rates (long - term government bond plus 1 %) and that amount is invested for the next 30 years in a portfolio of large - cap stocks while paying off the bond as an amortized loan (as if it were a mortgage).

Anecdotally I can confirm that investors are indeed worried about how bonds and bond funds will behave if rates continue to rise.

So if investors expect short - term rates to be zero for another 4 years, it would be reasonable for stocks and bonds to be about 16 % higher than historical valuation norms.

DeMarco: Next year may be challenging for bond investors if rates rise and inflation picks up as we expect.

But if you're holding Bond ETFs such as iShares XBB (mid-term maturities) or XSB (short - term maturities), then the prices of these ETFs will fall when rates go up.

That will be important to private investors, because if the central bank held itself out as a privileged bondholder, effectively passing more risk on to other bond holders, other buyers might undermine the stimulus program by demanding higher interest rates.