Sentences with phrase «when trading bonds»

When trading bonds, you may buy them at par, at a premium or at a discount.

Not exact matches

Cut in compensation of about 10 % came in a year when the bank's profit nearly halved due to higher legal costs and a slump in bond trading.
Dalio explained that a so - called capital war, when a country uses its asset holdings such as bonds to inflict pain on its adversary, could be even worse than a trade war.
«He walked me through the challenges he inherited at Salomon Brothers and how he handled them,» says Sloan, referring to the time when Buffett stepped in to rescue the Wall Street firm during a bond - trading scandal in the 1990s.
The «arbitrage» community also plays a role in these loops, especially when quoted bond «prices» don't reflect the reality of where the bonds would trade.
If Brexit - like sentiment in other nations leads to restrictions on the flow of trade and labor, he adds, «that is going to create greater uncertainty and volatility» — at a time when some commentators believe that global stock and bond prices are overdue for a tumble.
It used the FSR to report that traders and investors in Canada say that it is taking longer to complete trades in fixed - income markets and that larger trades that used to go through easily now must be broken up into smaller bites, especially when moving corporate bonds.
This strategy includes a broad range of investment options including stocks, bonds, mutual funds, exchange - traded funds (ETFs), and separately managed accounts (SMAs) when appropriate.
But panelist Daniel Greenhaus, chief global strategist at institutional trading brokerage BTIG, who makes appearances on Bloomberg TV and works with clients in the hedge fund world, said that hedgies take a longer view and avoid the noise in the blogosphere: «If you talk to George Soros, all he wants is the big picture view of QE tapering: «When will the Fed stop buying back bonds?
For US Treasury securities, the estimated price impact rose sharply when markets were stressed in late 2008, underscoring how costly it was to execute trades even in one of the most liquid bond markets (Graph 1, right - hand panel).
for equities: 9:30 a.m. to 4:00 p.m. ET when U.S. markets and exchanges (e.g., NASDAQ and NYSE) are generally open for trading; for bonds: 8:00 a.m. to 5:00 p.m. ET, when over-the-counter markets are open for trading (bond trading hours may vary based on marketplace participation)
The Fear Trade, of course, is driven by low to negative real interest rates — when inflation erodes away at government bond yields — deficit spending, a weaker U.S. dollar and geopolitical uncertainty.
This makes bonds a relatively heterogeneous asset class in which many securities are thinly traded.3 At the same time, institutional investors often hold assets to maturity and, when they do trade, do so in large amounts.
When JPMorgan first started to talk about the botched trades — some of which are still open positions they are trying to unwind — the bank said that they had grown out of hedges aimed at protecting the bank against losses on the bank's large bond portfolio.
I noted that the Italian BOND FUTURES Monday were trading above the June 27 close when ECB President Mario Draghi roiled global credit markets with his Sintra, Portugal speech, which suggested that the removal of a deflationary scare would allow the ECB to begin tapering its QE program.
Different brokers have vastly different trading platforms and rules when it comes to trading bonds.
For example, Overseas Shipholding Group (equity ticker OSG) is a deeply junk rated oil tanker company that has seen its bonds drop from trading around par (par means 100 cents on the dollar when comparing the market price to the face amount of the bonds) to distressed levels between 60 and 70 cents on the dollar.
Also exempted from the ban are cases when a bank underwrites a securities offering, and for trading in U.S. government, state and local bonds.
Publicly traded securities (e.g. shares, bonds, mutual funds) can also be designated as your gift and are exempt from capital gains tax when bequeathed to the Foundation.
This means there is not much work to be done on your part when selecting bonds because there is not much likelihood that any bonds trade for a huge discount to their fair value.
«GEM (Local)» is when foreign investors trade permanently on their local stock exchange using currency - hedged ETFs for both equity and bond trades.
When I became a professional bond investor at the ripe old age of 38 in 1998, it was the opposite — almost all bonds traded at premiums, and had relatively high coupons.
However, when I consider how stocks, bonds and the dollar are trading in relation to each other, I see a more subtle shift in markets occurring.
Swedroe: Battle Of New Factor Models Swedroe: The Carry Trade Defies Theory Swedroe: When Bonds Act Like Stocks 3 ETF Predictions For Rest Of 2015
CORPORATE FINANCING NEWS High - yield corporate bond issuance and trading have slowed considerably in the face of uncertainty about Federal Reserve monetary policy, at a time when chairman Ben Bernanke is about to hand over the reins to Janet Yellen,...
Trade: Buy the 10 - year US Treasury note when the consensus lowers its estimate of year - ahead growth and inflation, suggesting interest rates will go down and bond prices will go up.
Investors still face a trade - off between risk and return when investing in bonds.
Trade: Sell U.S. government bonds when credit appetite is high, as signaled by the CAI being more than one standard deviation above its 50 - day moving average, and buy when it is low, or more than one standard deviation below its 50 - day moving average.
Trade: Buy bonds when the ratio is more than half a standard deviation below its long - run moving average (bonds are cheap relative to stocks) sell when it's more than half a standard deviation above its long - run moving average (stocks are cheap relative to bonds).
Historically, stocks do tend to trade at higher valuations when bond yields are lower.
But things changed in 2007 when banks severely restricted their bond trading.
Also, when everyone and their grandmother sees a trade as a slam - dunk (in this case shorting bonds), the market will surely take its time in cooperating.
When I was a bond manager, I was more flexible with trading, but any position I brought on had to conform to one of the three buckets.
When our merger closed on 9/30, was began a massive down - in - credit trade, buying bonds in sectors most affected by the disaster.
Interest rates have been trending down for years, and bonds issued when rates were higher now trade at a premium.
When managing bonds, one boss of mine would say, «Primary market levels validate trading levels in the secondary market.»
You don't have to become a day trading pro when you're trying to balance a full course load, but you should learn the difference between a stock and a bond, even if you're not an econ major.
Most bonds these days trade at a premium (higher than their par value), because they were issued when interest rates were higher.
If you bought a GIC maturing in 3 years and paying 3 % a year, it wouldn't go down in value when interest rates rise — as GICs don't trade on the open markets like bonds — and you would earn your 3 % per year through maturity.
If you own a bond mutual fund or ETF (exchange - traded fund), you'll need to calculate the amount of income you earned from the fund's government bond holdings (if any) in order to take advantage of this exemption when you file your taxes — it won't be reflected on the tax forms issued by your investment company.
For example, when it comes to fixed income instruments, I much prefer buying US denominated corporate bonds which trade electronically and offer better pricing than Canadian bonds which trade via Canada's dealer network and are subject to large markups by the various financial institution.
The reason is that virtually all bonds now trade at a premium: they were issued when interest rates were higher, so they're priced above face value.
When I was an institutional bond manager, I would watch the results of trading on the slow days, because it would give a clue to what the «big guys» were doing.
When we're talking about Asset Allocation and we say «stock and bonds,» we're also including mutual funds and exchange - traded funds (ETFs) that hold those securities.
We live in a world where there are countless options when it comes to investing, from individual stocks and bonds to exchange traded funds (ETFs) and more.
Looking to the present, CST is now trading it's bond portfolio but only when it is advantageous to the fund.
Bonds do offer some advantages, such as the potential for better returns and easier trading when it comes time to rebalance.
It begins when John Gutfreund, Salomon's chairman, walks out onto the bond trading floor to have a few words with John Meriwether, one of his top bond traders.
In the bond market, when an investor buys or sells a bond, the counterparty to the trade is almost always a bank or securities firm acting as a dealer.
When an ETF acquires a bond, it may have a 5 percent coupon, but the current yield may be 3 percent due to where the bond is currently trading.
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