Sentences with phrase «as bonds mature»

Ultimately, as those bonds mature and proceeds are reinvested in lower - yielding bonds, the portfolio's long - term return is lower than it would have been under the first two scenarios, because the reinvestments are in lower - yielding bonds.

As bonds mature, a proportional weight will be held as cash until final maturity of the Index in 2016.

In a bond ladder, the bonds» maturity dates are evenly spaced across several months or several years so that the proceeds are reinvested at regular intervals as the bonds mature.

As these bonds mature or get sold, the fund will incur a steady trickle of small capital losses.

The principal can be reinvested as the bonds mature, or they can move some of it to a cash account and reinvest the rest.

As bonds mature during the year leading up to the termination date, the proceeds will be reinvested in cash and cash - equivalents and when the ETF terminates, it will make a cash distribution to unit holders equivalent to the ETF's Net Asset Value.

Over time, as bonds mature and if they are reinvested at higher interest rates, their ability to generate income can increase.

During times that stress retirement portfolios, you are at least as well off by starting with a large bond (i.e., TIPS and / or Ibonds) allocation (around 80 %) and gradually buying stocks (about 2 % to 4 % of your initial portfolio amount plus inflation annually) as bonds mature.

It has also maintained a policy where, as those bonds mature, the principal amount is reinvested in new mortgage - backed securities.

As each bond matures, the investor «rolls» the proceeds into a new bond at the far end of the maturity ladder time frame.

As each bond matures, the principal from the bond could be reinvested into a new bond.

Not exact matches

In his subsequent press conference, Draghi avoided answering directly whether the ECB would go from $ 30 billion to zero, saying «we don't stop suddenly,» but also stressing that the ECB will continue buying new bonds as its old holdings mature.

According to Rogers, China could reduce its $ 1.12 trillion of U.S. debt holdings by allowing the bonds to roll off as they mature.

The company's lone outstanding junk bond, worth $ 1.8 billion and maturing in 2025, briefly dropped two points to as low as 85 cents...

The company's lone outstanding junk bond, worth $ 1.8 billion and maturing in 2025, briefly dropped two points to as low as 85 cents on the dollar for a yield of around 8 percent on Monday, according to MarketAxess data.

China could take a more measured approach, said Reinhart, and not buy new bonds as old ones mature.

It is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature

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.

For example, if you're early on in your career, most of your money will be held in growth oriented stocks with a small percentage in bonds, and as you mature, your assets will slowly shift to more stable stocks and a greater percentage in bonds to help reduce volatility.

Also, as the owner of an individual bond, you are entitled to a 100 % principal repayment when the bond matures.

I would be interested if you could compare your 60/40 mix to a 60/40 mix using 5 - year bonds that are laddered so that they can be held to maturity and used when needed as they mature, and therefore never need to be sold at a loss.

This way, if a bear market occurs, you have a year of cash becoming available at the maturity date so that you do not have to sell stocks, and in a bull market you can buy new bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high quality bonds give versus cash or CDs.

It issued a further 1.949 billion euros in bonds maturing in 2018 as the cut - off rate declined to 4.033 percent from 4.769 percent in a tender held in November.

The government also needs to refinance a 1 billion - euro bond maturing in November and a smaller yen note due in July, according to data on the website of the debt - management agency, known as AKK.

But as newer bond holdings would get added to the index at the now higher interest rates as older bonds matured the performance would play catch - up.

That's because many of the benefits of bond ladders — such as an income plan and managing interest rate and credit risk — are based on the idea that you keep your bonds in your portfolio until they mature.

Matt's expected cash flows appear to decrease over time, as successive rungs of bonds mature, but he may be able to extend that income by reinvesting the returned principal each time one of the bonds matures.

State oil company Petroleos de Venezuela, commonly known as PDVSA, on Sept. 26 sweetened terms of a debt swap, offering to exchange more bonds maturing in 2020 for $ 5.3 billion worth that mature in 2017 after investors balked at an earlier $ 7.1 billion one - for - one proposal.

Instead, the Fed may let their $ 75B monthly T - bond purchases stop in late June (as planned) but continue to use the $ 20 - 25B monthly proceeds of maturing bonds to buy more T - bonds.

The financing needs coming due in the first quarter «imply that euro area banks will not have extra money as a result of the three - year auction to purchase European sovereign bonds, using a carry - trade strategy, because the amount of fresh cash is less than the amount of bank debt that will mature during the quarter», Powell wrote recently.

High - yield bonds, those from companies with weak financial positions and poor credit, are offering rates as high as 9 % for 30 - year terms but also offer the risk of bankruptcy before the bond matures.

This is also a popular strategy for people that need passive income because it provides a constant stream of extra income as the near - term bonds mature and return your investment money.

As well as indicating the reductions would be concentrated on its purchases of government (rather than corporate) bonds, the ECB subsequently provided details of its previously purchased securities that are set to mature over the next 12 monthAs well as indicating the reductions would be concentrated on its purchases of government (rather than corporate) bonds, the ECB subsequently provided details of its previously purchased securities that are set to mature over the next 12 monthas indicating the reductions would be concentrated on its purchases of government (rather than corporate) bonds, the ECB subsequently provided details of its previously purchased securities that are set to mature over the next 12 months.

Dividend — A part of a company's profits paid to their shareholders; not the same as the payout bondholders receive when their bonds mature.

In the later 1950s, as I matured within the loving bonds of that society, Africa became for me not one side of a bridge but a whole sphere of redemptive life, sustaining within itself those features which earlier I had felt must come from outside.

As the industry segments and matures, it diversifies its offerings and it develops deeper, more specific and nuanced bonds with its consumers

Other bond markets, like the high yield corporate and senior loan markets often have high concentrations of debt maturing in specific years in the near future — often referred to as a «maturity cliff».

It is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature

If rates rise, income gradually rises as bonds or GICs mature and new ones are added at higher rates.

A laddered preferred portfolio uses the same concept as bond laddering, where a portfolio is constructed with instruments of staggering maturities so that a fixed portion of the portfolio matures each year.

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.

When the bond matures, the second investor must include as ordinary, taxable income ten points of gain (the revised issue price at acquisition of 70, less the purchase price of 60).

In contrast, if rates drop as they roll over maturing bonds, their income will be reduced.

I experimented with buying actual bonds, which have done pretty well, but as they mature I'm doing what you're doing and putting the funds into XSB / XBB — I'm considering Claymore's Laddered Bond ETF too.

In any bond fund, the manager is constantly collecting interest payments and cashing in bonds as they mature.

And while rising rates are bad for bonds and bond funds in the short - term, climbing yields can actually boost returns on a diversified portfolio of bonds over the long haul, as interest income and proceeds from maturing bonds are re-invested at higher rates.

As central banks move away from ultra-loose monetary policy, and the global economic expansion matures, bond fund managers will need to ensure their portfolios draw on a truly diverse range of sources of return and carefully consider portfolio risk if they are to generate yield in the current market environment.

As you approach retirement, you would buy bonds or CDs that mature in each of the first five years of your retirement, thus providing you with the spending money you need.

It refers to a bond issuer's ability to repay its debt as promised when the bond matures.

My observations have been: — I have experienced low volatility similar to a balanced series of stock and bonds — dividend income has grown between 6 - 8 % annually — not that much growth potential as most of the individual stocks I own are mature companies — I sleep well at night — none of these companies cut their distribution in 2008/2009 meltdown