Sentences with phrase «so bond prices»

When the market is bad, demand for safe money increases, so bond prices rise and yields fall.

So bond prices fall until buyers can be found.

So bond prices fall until buyers can be found.

Not exact matches

The bonds of iHeartMedia have long been in the basket of «distressed debt,» meaning their prices have fallen so far to where their yields are at least 10 percentage points higher than equivalent Treasury yields.

And so again, Marks notes that what matters is what price you'll be able to get for those bonds if you're forced to sell them quickly.

Timmer: Yeah, so last August which was a key inflection point for the market — because at that point, nobody was expecting tax cuts anymore and the 10 - year Treasury had fallen to 2 %, and the bond market which of course is always pricing in the potential future, was pricing in only one more rate hike over the subsequent two years.

Fortunately, 6.8 % corresponds precisely to our bond price, so no further calculations are required.

so now the issue is whether the bond market (or macro hedge funds) eased too much thinking the Fed would choke off liquidity and now is staring at still a weaker dollar and high commodity prices indicating an elevated level of excess liquidity.

So far the old «rates up, bond prices down» axiom seems to be holding.

So here's the thumb rule: For every 1 % change in interest rates, the price of the bond will decline by (approximately) its duration, in percent.

Yields have an inverse relationship to bond prices and fall when investors flock to a so - called safe haven asset.

Income earned on bonds is so low that it's difficult to offset the price declines when rates rise (remember interest rates and bond prices are inversely related, so as one rises the other falls).

The economy would «borrow its way out of debt,» re-inflating asset prices for real estate, stocks and bonds so as to deter home foreclosures and the ensuing wipeout of collateral on bank balance sheets.

These bonds are fairly illiquid, so prices may have farther to fall if redemptions continue.

If bond prices drop, it means so has demand for Treasurys.

So in addition, the Fund periodically hedges its exposure to those market fluctuations, based primarily on the status of valuations and market action (price behavior, trading volume, breadth, industry action, and other asset types such as bonds, commodities, and so forthSo in addition, the Fund periodically hedges its exposure to those market fluctuations, based primarily on the status of valuations and market action (price behavior, trading volume, breadth, industry action, and other asset types such as bonds, commodities, and so forthso forth).

Bonds that will mature in a couple of years will give investors the opportunity to reinvest their money in new bonds at higher rates so prices do not react quiet so negatively to higher rBonds that will mature in a couple of years will give investors the opportunity to reinvest their money in new bonds at higher rates so prices do not react quiet so negatively to higher rbonds at higher rates so prices do not react quiet so negatively to higher rates.

Their cost of capital is a function partly of low interest rates and part of the implicit share price is a function of the fact that investors have looked at equities for dividends rather than bonds for yield because the bond market is so expensive.

The prices listed for bonds are for recent trades, usually for the previous day, so keep in mind that prices fluctuate and market conditions may change quickly.

Yet by setting yields so low and bond prices so high, markets are sending a clear signal that they want more, not less, government debt.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

So we have to wonder, is it possible that Saudi Arabia is preparing to weaken the dollar by liquidating their US government bond holdings, boosting the price of oil before their IPO?

The joint venture will take up closed - ended municipal - bond funds in the next year or so that when the predicted bond market collapse comes, it will drive fund prices down to as little as 40 % of net asset value.

So it seems that bonds are already priced with the expectation for the economy to slow substantially.

The market will do so by increasing the price of the high quality, long duration bonds that we currently favor to levels that no longer offer a compelling return and margin of safety.

If so, increasing the supply of bonds should have a significant depressing impact on asset prices and the economy.

So now bond and stock prices move opposite of each other.

So while low and negative interest rates across the globe has inspired flows into stocks, emerging market bonds and corporate credit in search of higher yields, keep in mind the high correlations of these assets to oil prices and the advantages of holding actual diversifiers in your portfolio to smooth the ride.

Interviews earlier this year with nearly 60 global bond investors found that more than expected - 29 % - either currently make prices in the corporate bond market or plan ton do so in the next 12 months.

Rising stock and bond prices made pension funds pay more to purchase a retirement income — so «pension fund capitalism» was coming undone.

Investors, both in stocks and in bonds, have impounded the Goldilocks thesis into prices, so there's a lot riding on the next couple of months of data.

These stimulus measures have driven bond yields in Europe and Japan lower and bond prices there higher, and could continue to do so (source: Bloomberg).

There is sticker shock when they see bond prices down so much so quickly.

Moreover, during the course of such drastic sellout, the price for US bonds will most likely drop temporarily, so the seller would suffer additional losses.

So for example, a $ 1 bond that pays out $ 2 in 1 year would actually be worth less than its purchase price if the inflation of dollars is over 100 % that year.

The price of the dating event apparently includes a cocktail, so I assume there is a stop, however I doubt this stop would be without further toilet - based information, so I think the only real opportunity singletons would have to bond would be at the end, away from the tour, as The Fresh Prince and I did (though at least the tour gives you an ice breaker to laugh about!)

So if an investor expects market interest rates to go down, they want a long - duration bond portfolio because it will maximize the increase in price.

When interest rates rise, bond prices fall and so does your NAV.

Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions.

The recent steep decline in yields have pushed bond prices up resulting in Puerto Rico out performing the rest of the municipal bond market and other bond market segments so far this year.

In general, bond prices are inversely correlated with market interest rates — so if I'm holding a bond portfolio and market interest rates go up, then my portfolio will decrease in value assuming all else is held equal.

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

So you have to look at it, and I'm sure a lot of you've heard through the media and everything else, as interest rates go up, bond prices go down.

Once we own the bond, we've locked in the high yield, so we hope for high prices (lower interest rates).

So interest rates go up, bond prices go down.

So if an investor were calculating YTM on a bond priced below par, he or she would solve the equation by plugging in various annual interest rates that were higher than the coupon rate until finding a bond price close to the price of the bond in question.

Fortunately, 6.8 % corresponds precisely to our bond price, so no further calculations are required.

I'm guessing it's easier to find buyers for a corporate bond on the secondary market, so I could probably get a better price.

Many bonds only have a small number of holders, so it gets easier to guess who the big traders might b, thus affecting the market price $ $ Nov 06, 2013