Sentences with phrase «keep bond maturities»

Keep bond maturities under five years.

Not exact matches

As older bonds mature, newer bonds are purchased and the portfolio manager of the fund generally tries to keep the average maturity in the range that is stated in the fund's objective.

As we get further along in the business cycle, I tend to keep the maturities in my corporate bond exposure a little shorter than I would earlier in the cycle.

But bond buyers know that if they keep the bond until the maturity date, they can get their money back.

The yield is the calculated real interest rate of the bond, if it is bought at today's bid price and kept until maturity.

As for bonds, you want to own both government and high - quality corporate issues in a range of maturities (although, to protect yourself against the possibility of rising rates, you'll want to keep the average maturity of your overall holdings in the short - to intermediate - term range).

Our investment advice: When it comes to choosing between stock or bonds and you're reluctant to hold a 100 % - stocks portfolio — and many people are — then one alternative to consider is to keep a portion of your investment funds in relatively short - term fixed - return investments, with maturity dates of a few months to no more than two to three years in the future.

This rate of return does not alter as long as you keep the bond to maturity.

If the bond you choose is selling at a premium because its coupon is higher than the prevailing interest rates, keep in mind that the amount you receive at maturity will be less than the amount you pay for the bond.

Our only hope is to wait the multiple years until maturity or keep buying to lessen the increasing yield impact to original bond price paid when interest rates were lower.

As time goes by and bonds get closer to their maturity dates, the portfolio manager will replace some of the shorter - term bonds with longer - term ones in order to keep the average within the stated range.

Of course, even if rates climb from 2 % to 10 %, assuming that you keep the bond to maturity and assuming that there is no applicable credit event, it will still pay out the same $ 1000 at maturity and the same $ 20 / year (2 % of nominal value $ 1000, p.a.).

Keep your long term bonds to maturity, this is the only solution to keep your yield sKeep your long term bonds to maturity, this is the only solution to keep your yield skeep your yield safe.

This year investors who followed the MFIP were led to shorten maturities (therefore lowering their interest - rate risk) and also to use higher - yielding corporate bonds rather than Treasuries or mortgage - backed securities (thereby keeping lower duration and less interest - rate risk).

In general, the funds keep maturities between one and five years, and they stick to the highest - quality bonds — no high - yield junk.

Also, if you bought the underlying and held them to maturity, then your potfolio would start out with a long duration and grow shorter over time (Unless you keep buying bonds the same way the mutual fund manager does).

So if you're investing in bonds in today's climate, it's probably best to keep maturities short (1 - to - 3 years).

I keep the time to maturity fairly short — originally 6 months, but now 12 as the Great Recession has eased — to minimize the likelihood that something goes horribly wrong with the economy or the bond issuer before my bond is redeemed.

The low Fed Funds rate keeps all high quality short - term bond yields very low and pushes investors into longer maturity bonds.

The Fed's commitment to keep the Fed Funds rate low for an «extended period» also supports the shift into longer bonds as it gives investors the added confidence to switch into longer maturity bonds.