Sentences with phrase «when bond payments»

Not exact matches

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.

When the U.S. payments deficit pumps dollars into foreign economies, these banks are being given little option except to buy U.S. Treasury bills and bonds which the Treasury spends on financing an enormous, hostile military build - up to encircle the major dollar - recyclers China, Japan and Arab OPEC oil producers.

If a bond issuer fails to make either a coupon or principal payment when they are due, or fails to meet some other provision of the bond indenture, it is said to be in default.

The payment cycle is not necessarily aligned to the calendar year; it begins on the «Dated Date,» which is either on or soon after the bond's issue date, and ends on the bond's maturity date, when the final coupon and return of principal payment are paid.

Bonds generally have a very low correlation to stocks (they zig when stocks zag) and they offer you income in the form of fixed cash flow payments.

Another view lets Matt review the schedule of when to expect interest payments and the return of principal — providing a view into the cash flow he could expect if he chooses to purchase the suggested bond ladder.

Also, the dividend payments are a useful source of income when bond yields are low.

Bonds» interest payments are calculated as a percentage of their principal, so when higher inflation pushes up TIPS» principal value, the bonds» interest payments rise as Bonds» interest payments are calculated as a percentage of their principal, so when higher inflation pushes up TIPS» principal value, the bonds» interest payments rise as bonds» interest payments rise as well.

The company pays interest payments, usually twice a year, until the maturity of the bond when it pays the face value of the bond to investors.

When you look at a bond it's very easy to tell what you get back, it says it right on the bond, it says when you get the interest payments and the princiWhen you look at a bond it's very easy to tell what you get back, it says it right on the bond, it says when you get the interest payments and the princiwhen you get the interest payments and the principal.

I started my zero coupon muni bond ladder in 1997 when I got a large insurance payment.

Even in the years after 2007, when the PILOT payments were used to pay off the mall's bonds, Destiny continued to collect property tax credits.

When we last tuned in to the seemingly endless conflict between New Paltz government and developers seeking to build student housing for the college, the town board had bonded with the village board in opposing any kind of payment in lieu of taxes (Pilot) agreement for the developer.

The law not only required the state to make any and all necessary payments for the next 25 years, but that requirement was made iron - clad when the language was added to the bond covenants the accompanied the bonds when they were sold to Wall Street investors.

«I know that schools need bond financing to build but why are we paying it out of our limited funds when we know we're going to get squeezed with higher CalPers contribution rates; with retiring medical payments,» he added.

When you buy an individual bond and hold it to maturity, the coupon payment you receive is constant during the life of the bond.

When an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments.

At the end of that period — when the bond matures — the interest payments stop and your initial investment is returned to you.

When you buy a bond, you give a government or corporation a sum of money in exchange for the promise of interest payments for a specified period.

Also, I know what the temptation is to mismark illiquid bond positions when incentive payments may be riding on the result (which is why we took the marking out of our hands at a prior firm).

When you divide the annual coupon payment by the bond's current price, you get its yield.

When a fund announces a dividend (or other distribution, such as an interest payment from a bond ETF), it will declare a record date and a payment date.

Corporate bond investors have a high expectation of full payment, but when default occurs, they lose 60 - 80 %.

This takes account of the annual coupon payments, the timing of those payments and the amount you will receive when the bond is redeemed.

The issuer of the bonds may not be able to meet interest or principal payments when the bonds come due.

Reinvestment risk is more likely when interest rates are declining and affects the yield to maturity of a bond, which is calculated on the premise that all future coupon payments will be reinvested at the interest rate in effect when the bond was first purchased.

Sometimes when a company's common stock continues to perform poorly, in a capital restructure, bonds may be converted to preferred shares, which gives bond holders continued income payments as dividends.

Investors in bonds benefit in receiving the interest payments and principal debt when the bond matures.

When you invest in a bond and hold it to maturity, you will get interest payments, usually twice a year, and receive the face value of the bond at maturity.

This means the borrower is not able to keep up its interest payments or even pay off the bonds when they mature.

This is a great question and one we'll answer in more detail on Thursday, but in short, the NAV of a bond fund that makes monthly or quarterly dividend payments will not drop when the fund makes an income distribution.

In fact, the ONLY example I can think of where a person can actually come out ahead by borrowing money is when public corporations issue bonds to investors on which they pay regular interest payments.

When the bond matures, investors will receive single payments equal to their initial investments plus the accrued interest.

Bonds do it in the form of coupons, which are the interest payments that the issuers bound themselves to make when they issued the paper.

The bond rating measures the financial strength of the company issuing the bond, and its ability to make interest payments and repay the principal of the bond, when due.

When buying a bond or debenture, you pay the transaction price plus the portion of the next interest payment that has accrued since the bond's last payment.

They are less volatile than stocks and the coupon payments are often higher than most dividends, so you don't have to place a good bet to make money on bonds, like you do when buying a company's stocks.

Credit risk occurs when the bond issuer's financial troubles negatively impact your payments.

Safe bond investment may offer low annual interest rate when compared to risky bonds and this is why many new bond investors tend to buy risky bonds and end up risking not only their interest payment but their principal amount as well.

The bond investment grade is assigned after assessing the potential of the bond and the bond issuer and depicts how likely and reputed the bond issuer is when it comes to the interest (coupon) payment and also the repayment of the principal face value amount once the bond maturity period is completed.

Her alternative is to hold the bond until it matures, possibly many years in the future, when she'd be repaid the original $ 1,000 she loaned Corp A, and collect all the interest payments along the way.

In sum, bond values on the secondary market change based mainly on the collective perception of investors about future inflation and the likelihood that the bond issuer will continue to make interest payments and repay bondholders when the bond matures.

Credit / Default risks — The possibility that a bond issuer will default means that the issuer will be unable to make interest or principal payments when they are due.

This is where you use only stock dividends, bond interest payments, and any other account interest when rebalancing the portfolio.

Quite the opposite, buy the smallest possible house to lead a happy, yet frugal lifestyle, but on that house get the maximum mortgage, never make additional payments until a few years before retirement when you like to raise the bond allocation.

When you issue millions (or billions) worth of bonds the difference in interest payments can be substantial between companies with different credit ratings.

When compared to stocks, bonds are a popular choice due to their perceived lower risk and anticipated payments.

To be clear, when the bond is issued, the coupons and final payment are known.

Because the coupons on existing bonds don't change when rates move, the interest payments you receive every month likely won't get any lower.

The issuer is obligated to pay the bondholder a specified amount, usually at specific intervals (interest payments) and to repay the principal amount when the bond matures.