Sentences with phrase «if government bonds»

But if government bonds rose to four per cent, prospective buyers who take on more risk and workload than a bond buyer would demand a higher ROI or cap rate.

PPF rate will go down over the long term if the Government bonds yields go down slide the long term.

If government bonds carried risks similar to stocks, then there would likely be more reasons to hold bonds as funds rather than individually.

«If government bonds are not going to be the thing that drives your return and are not necessarily the bastion of diversification - where do you go next?

But if that government bond goes to 10 %, it changes the value of this equity bond that, in effect, you're buying... when you buy an interest in... anything, you are buying something that, over time, is going to return cash to you... And those are the coupons.

We want a significantly higher return than from a government bond — that's the yardstick, but not if government bond rates are 2 - 3 %.

Not exact matches

«If they do target aggressively the 2 percent inflation target, and undertake a significant amount of QE, that may have an impact on underlying JGB (Japanese government bond) yields as investors become concerned over Japan's debt,» he said.

«If the BOJ were to ease policy, it would therefore be most natural for it to increase government debt purchases and target longer - dated bonds,» Kuroda said in a confirmation hearing in the lower house of parliament.

If the Central Bank creates money to refinance the bonds, then it will, effectively, be printing money to fund the government's budget deficit.

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.

In essence, if correct, this means there is less price risk in government debt securities than corporate fixed income issues, and therefore the extra 10 % should largely be made up of government bonds rather than corporates and preferred shares.

If policymakers, however, resolve to have no government involvement at all, the bond market will price it out for you, but the likely outcome is a residential mortgage market that is smaller, more expensive, and less liquid.

Classical economist David Ricardo posited that if citizens observed their government issuing more bonds, they'd reduce spending in anticipation of higher subsequent taxes when those bonds had to be repaid.

If the funds are obtained through increased government borrowing, then the purchasers of this increased supply of government bonds will be curtailing their lending to other borrowers / spenders or will curtail their own spending in order to purchase the government bonds.

In addition, housing and the economy should get a lift from the plunge in 10 - year U.S. government bond yields to 3 %, and, if the economy needs it, a new round of quantitative easing from the Federal Reserve.

If the government «prints» anything you could say they print Treasury Bonds, which are securities, not money.

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?

If you purchase directly from the government, you must place bids for the bonds you want — these are noncompetitive bids because you know and agree to the price you will be paying.

According to Griesa (uniquely), this means that if any creditor or vulture fund refuses to participate in a debt writedown, no such agreement can be reached and the sovereign government can not pay any bondholders anywhere in the world, regardless of what foreign jurisdiction the bonds were issued under.

Remember, if the government gives us a tax cut they'll still have to make up the budget shortfall somehow, chiefly by selling more bonds to American citizens (who happen to be the same people getting the tax cut) or foreigners (who will raise the money by selling us more of their goods and services, or buying less of ours).

If you bought long - term government bonds in 1940, forty years later, your dollar was worth $ 0.37, and you weren't made whole until 1991!

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).

Kidney describes that if governments start to provide guarantees and regulatory support for green bonds, these bonds will obtain a lower risk - profile and will then be able to compete with brown economic assets such as oil and gas.

It helps the economy more, for example, if they put the money toward productive new companies than if they invest in government bonds.

If China runs a capital account deficit and the US a capital account surplus, and these are roughly equal to net purchases by the PBoC and other Chinese government entities of US government bonds and US assets, China will run a current account surplus exactly equal to its capital account deficit.

If the government did stop paying interest on its outstanding bonds, those bonds would most likely become less attractive.

Bond yields would be back at 6 percent in 24 hours if the Hungarian government enacted the right policies.

The BofA Merrill Lynch high - yield index is trading at roughly 600 basis points versus government bonds, but if energy, metals and mining is excluded, it's about 80 basis points less in terms of spread.

And if you're retired and relying on government bond funds, the decline since July has wiped out several years worth of income.

But long - term government bond yields fell to record lows for many euro area countries after a speech by ECB President Draghi on 21 November, which stressed that the ECB will do what is required to raise inflation and inflation expectation by adjusting the size, pace and composition of asset purchases, if the currently announced policies prove to be insufficient.

Today, however, EE Government Savings Bonds only pay 3.5 % if you hold them for 20 years.

I personally believe that the above are good enough reasons to add pressure to Treasuries, but if we want more food for thought, we can not forget that China is the largest holder of US government bonds after the Fed and if the rhetoric around a trade war escalates we can assume that this point would most likely be touched by Chinese counterparties.

If there's not a single buyer that will take on both the assets and liabilities without the government assuming private default risk, Bear's assets should be put out for bid, Bear's bonds should go into default, and by the unfortunate reality of how equities work, Bear's shareholders shouldn't get $ 2 - they should get nothing.

So if your horizon is 10 years, buy 10 - year maturity government bonds, and so on.

If you want minimum risk, buy UK government bonds with a time to maturity that suits your time horizon.

It's very difficult to manage inflation just by determining whether government liabilities take the form of cash or government bonds (which is what the Fed does) if you can't control the explosion of government liabilities itself (which only Congress and the executive branch can do).

If governments and central banks are intensely working to levitate bonds, fiat currencies, and stock markets, and are working equally intensely to suppress commodity prices, what do they have to hide?

Government Bond Index Fund as I'm not sure how they will be affected when / if we leave the EU.

If an investor wants to protect his or her savings above all else, the ideal investment would be U.S. Government paper — Treasury bills, bonds, notes, TIPs, and the like.

Well, if I could borrow at a rate around that of the Federal Government, I'd probably borrow, too (Apple's 2025 bonds yield 2.6 %, compared to 10 - Year treasury of 2.29 %).

If the banks can borrow at less than 1 % in the short - term inter-bank market, and get nearly 4 % on Treasuries, or 5 % on government - guaranteed mortgage bonds, why should they ever bother doing anything else?

If you think about it, if you are long government bonds that yield less than 1 % (or negative), you are massively short optionalitIf you think about it, if you are long government bonds that yield less than 1 % (or negative), you are massively short optionalitif you are long government bonds that yield less than 1 % (or negative), you are massively short optionality.

The bottom line of Draghi's answers was that the ECB would only buy government bonds rated lower than investment grade if the countries are in a bailout programme and the programme is not in a review period.

Well, if they leave all their money in bank deposits and Canadian government bonds, they'll be very safe but they won't make very much,» said Darrell Duffie, a Canadian economist at California's Stanford University.

But I hope it's clear that if yields do rise sharply, a fall in the value of your government bond fund could be your least concern.

If the Spanish government requested a formal bailout from the European Central Bank, it would enable the ECB to buy up some of the government's bonds.

And if most governments in the world have been financing their budgets with debt, the minute the debt deflation hit, that's essentially the bond market saying, «hold on now it's going to cost you a lot more if you want to continue financing your budget».

Savings could also be realized if the government eliminated its retail debt program, primarily Canada Savings Bonds, as has been recommended in the past as it is a very costly program to administer.

As you can see from looking at this last chart, if you can invest across 10,000 independent Lotto Shares, you can effectively turn your Lotto Share investment into a normal government bond investment — a risk - free payout.

I did an analys of the 2008 crash and discovered that even if you are living off the fund and are forced to withdraw annual expenses at the bottom of the crash, the S&P 500 beat the government bonds (that didn't crash) within a few years.