Sentences with phrase «mortgage bond debt»

Mortgage bond debt typically falls under the «good» debt category because it helps you maintain a strong credit history and there are tax benefits for your investment, which can be tax - deductible.

Not exact matches

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.
Government bonds are a straightforward security, unlike, say, synthetic collateralized debt obligations stuffed with sub-prime mortgages.
Back in 2010 it paid $ 550 million to settle charges brought by the Securities and Exchange Commission that it mislead investors into buying a so - called synthetic collateralized debt obligation named Abacus, which was made up of a bundle of financial instruments tied to subprime mortgage bonds, many of which plummeted in value shortly after the deal was sold.
These include emerging market bonds, high yield debt, corporate bonds and mortgage bonds.
The Federal Reserve pumps money into the banking system by purchasing bonds and, when the system breaks down, makes enormous bailout payments to cover the bad debts run up by banks and other institutions to mortgage borrowers, businesses and consumers.
The Barclays U.S. Aggregate Bond Index is a market value — weighted index of investment - grade fixed - rate debt issues, including government, corporate, asset - backed, and mortgage - backed securities, with maturities of one year or more.
I'm actively looking at my debt and determining if it makes more sense to pay down mortgages (locking in a guaranteed ~ 4 % return) or investing in bonds (~ 1 % returns if held to maturity) or stocks (uncertain, but I just wrote an article about the current PE ratio and the inevitable reversion to the mean and I believe we are likely headed for 10 years of low single digit returns).
NexPoint Strategic Opportunities Fund (NHF) is a closed end fund that seeks current income with capital appreciation through investment in floating and fixed rate loans, bonds, debt obligations, mortgage backed and asset backed securities, collateralized debt obligations and equities.
It's easier for them simply to swap their junk mortgages to the Treasury or Federal Reserve for full - value U.S. Treasury bonds, and make the government take the loss — and presumably levy taxes to cover the interest charges on the augmented debt!
NexPoint Strategic Opportunity Fund (NHF) is a closed end fund that seeks current income with capital appreciation through investment in floating and fixed rate loans, bonds, debt obligations, mortgage backed and asset backed securities, collateralized debt obligations and equities.
The Obama Administration's Wall Street managers have kept the debt overhead in place — toxic mortgage debt, junk bonds, and most seriously, the novel web of collateralized debt obligations (CDO), credit default swaps (almost monopolized by A.I.G.) and kindred financial derivatives of a basically mathematical character that have developed in the 1990s and early 2000s.
Debt securities include government and corporate bonds, certificates of deposit (CDs), promissory notes, debentures, preferred stock and collateralized securities (such as collateralized debt obligation (CDOs) and collateralized mortgage obligation (CMOs)-RDebt securities include government and corporate bonds, certificates of deposit (CDs), promissory notes, debentures, preferred stock and collateralized securities (such as collateralized debt obligation (CDOs) and collateralized mortgage obligation (CMOs)-Rdebt obligation (CDOs) and collateralized mortgage obligation (CMOs)-RRB-.
I don't understand why people invest in bonds but keep mortgage debt on the books.
Is there any reason why someone with an outstanding mortgage should buy bonds rather than service their own more expensive debt?
Personally I think mortgage debt is the only good debt, but I'm not sure I'd use it to buy low - yielding bonds.
Investors have taken note and reduced their demand for Canadian debt securities, pushing up bond yields and, consequently, mortgage rates.
The unit, the chief investment office (CIO), has been the biggest buyer of European mortgage - backed bonds and other complex debt securities such as collateralized loan obligations in all markets for more than three years... The unit made a deliberate move out of safer assets such as US Treasuries in 2009 in an effort to increase returns and diversify investments.»
A bond fund is typically comprised of debt instruments, such as bonds and mortgage - backed securities.
To do this, we trimmed several positions including: corporate bonds, emerging market debt, mortgage REITs and U.S. REITs.
The Fed's go - to move is tweaking its target for the federal funds rate, which is what banks charge one another for loans and the benchmark for our rates on mortgages, credit cards and other debts, as well as savings accounts, CDs and Treasury bonds.
Hartford Funds» new ETF joins two other already listed active fixed income ETFs sub-advised by Wellington (Hartford Corporate Bond ETF (NYSE: HCOR), an ETF focused on investment - grade corporate bonds, and Hartford Quality Bond ETF (NYSE: HQBD), a core bond ETF focused on investment grade debt, including mortgage - backed securities and US government securitiBond ETF (NYSE: HCOR), an ETF focused on investment - grade corporate bonds, and Hartford Quality Bond ETF (NYSE: HQBD), a core bond ETF focused on investment grade debt, including mortgage - backed securities and US government securitiBond ETF (NYSE: HQBD), a core bond ETF focused on investment grade debt, including mortgage - backed securities and US government securitibond ETF focused on investment grade debt, including mortgage - backed securities and US government securities).
In order to stimulate the economy further, the central bank has engaged in quantitative easing (QE) or the purchase of U.S. treasury bonds and mortgage debt in order to drive down long - term interest rates as well.
@blip yeah from the actual reference used - $ 80 million in bond debt secured by the property - thats not the same as a mortgage.
Alistair Darling has explained to parliament the Bank of England's plan to swap mortgage debts for government bonds.
One can still trade the mortgage - backed securities that helped derail the global economy or corporate debt repackaged as bonds.
If the film were described as a tutorial on MBS (Mortgage - backed Securities), CDO (Collateralized Debt Obligations), Credit Default Swaps, Tranches, Bond Ratings, and Sub-Prime ARMs, most people's eyes would glaze over and they would keep skimming for showtimes of other new movie releases.
«If schools aren't willing to pay the mortgage on debt on their bonds why should we?
For example, in response to the financial crisis, the Federal Reserve took the unusual step of embarking on a quantitative easing program in which it bought up mortgage - backed securities and government debt in the form of Treasury bonds.
The index will rank U.S. Treasuries, U.S. investment grade corporate bonds, U.S. investment grade mortgage backed securities, U.S. high yield debt and U.S. dollar denominated debt of emerging market issuer according to their momentum / trend scores.
FGIC and other bond insurance companies have been hobbled by their expansion into guaranteeing risky collateralized debt obligations (CDOs) and asset backed bonds, markets that have been hammered by rising mortgage losses.
HSBC Mortgage Fund HSBC Canadian Bond Fund HSBC Emerging Markets Debt Fund HSBC Monthly Income Fund HSBC U.S. Dollar Monthly Income Fund HSBC Global Corporate Bond Fund
In our opinion, the so - called «spread sectors,» from high - yield bonds to non-agency mortgages and emerging - market debt (EMD), currently offer attractive levels of credit, prepayment, and liquidity risks, particularly for investors who know how to analyze these risks.
SUPPOSE YOU HAVE $ 200,000 in bonds — and you also have $ 200,000 in mortgage and other debt.
Mortgage bonds offer the investor a great deal of protection in that the principal is secured by a valuable asset that could theoretically be sold off to cover the debt.
Other bonds offer collateral (such as mortgage debts) to secure their debt offering.
Those include domestic and international sovereign and corporate debt, municipal bonds, mortgage - and asset - backed debt securities, convertible bonds and preferred stock.
In the United States, repos are typically done in conjunction with U.S. Treasury bonds, mortgage securities, corporate bonds or other forms of debt agreed upon by the counterparties to the agreement.
Returns from investments in «junk» bonds, government guaranteed mortgage securities and even some battered euro - zone debt are plunging in the wake of global central bank policies intended to suppress borrowing costs.
Benjamin Graham, the father of value investing, was known to hold common stocks, preferred stocks, convertible preferred stocks, mortgage bonds, subordinated debt and convertible bonds.
A collateralized debt obligation is named for the pooled assets — such as mortgages, bonds and loans — that are essentially debt obligations that serve as collateral for the CDO.
Mortgage - backed investments, unlike traditional debt investments, are also subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise.
The Fund pursues its investment objective by investing primarily in fixed income securities, such as U.S. Treasury bonds, notes and bills, Treasury inflation - protected securities, U.S. Treasury Strips, U.S. Government agency securities (primarily mortgage - backed securities), and investment grade corporate debt rated BBB or higher by Standard & Poor's Global Ratings or Baa or higher by Moody's Investors Service, Inc., or having an equivalent rating from another independent rating organization.
My sense is that when the Fed stops its purchases of mortgage bonds in the next few months, the longer - dated debt markets will cease to be so friendly, and rates will rise.
After the program of MBS and debt accumulation by the Fed ended, they were still «recycling» inbound proceeds from maturing and refinanced mortgages to purchase replacement bonds for a number of years.
Even the very bad «acronym bonds» like CDOs (Collateralized Debt Obligations) and CMBS (Commercial Mortgage Backed Securities) are back in vogue.
High - interest preferred shares were replaced with lower coupon bonds and mortgage debt, for example.
Bond funds that invest in U.S. Treasuries, corporate bonds, mortgage - backed securities, municipal bonds and other debt securities pay monthly dividends, usually at a higher rate of return than money market mutual funds.
The Fund seeks to achieve this by investing primarily in the following categories of securities and instruments of corporations and other business entities: (i) secured and unsecured floating and fixed rate loans; (ii) bonds and other debt obligations; (iii) debt obligations of stressed, distressed and bankrupt issuers; (iv) structured products, including but not limited to, mortgage - backed and other asset - backed securities and collateralized debt obligations; (v) equities; (vi) other investment companies, including business development companies; and (vii) real estate investment trusts.
Most loans from financial institutions and certain high - grade debt securities such as mortgage bonds are senior debt.
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