Sentences with phrase «as government bonds»

With yields on «risk - free» assets such as government bonds so low, the higher valuations for risk - on assets like equities might be justified.
While not the same as government bonds, a market flooded with bonds of any kind will drive up interest rates.
Because these bonds aren't quite as safe as government bonds, their yields are generally higher.
The recent development in the equity market made cash and safer investments such as government bonds look attractive.
Government budgets however will remain in effect most likely as government bonds will remain in demand when rates are low.
Some investors think that corporate bonds are about as risky as government bonds.
They can sell risky assets such as credit, or buy less risky assets such as government bonds, adding a buffer to their portfolios.
The reasons why municipal bonds are issued are the same as government bonds.
For the past decade, investors have flocked to the stock market for higher yields as government bond yields have hovered at historic lows.
The sole investment available is a new Treasury security that earns the same interest rate as the government bond fund available to federal employees.
Gil McDougald, as reliable as a government bond, has seniority rights to shortstop.
However, one disadvantage of issuing government bonds is that as the government bond payments are made in the local currency of the country, there is a risk of inflation of the currency and in case of inflation, the value of the currency paid to you for the government bonds that you own may decrease.
Mortgage rates are improving a little today as government bond yields slide lower.
An investment grade rating ensures that credit risks are still pretty low, although corporate bonds won't perform as steadily as government bonds if the market ever swoons again like it did in late 2008.
An interesting article on diversifying the current trust fund to include stocks as well as government bonds to increase the rate of return that Paul complains about and lessen the danger pointed out by Foobarista.
Large - scale asset purchases, often referred to as «quantitative easing,» entails the central bank creating new reserves and using them to purchase large quantities of securities such as government bonds or private assets including mortgage - backed securities and corporate bonds, from the private sector.
Some corporates are almost as safe as government bonds and offer only slightly higher yields.
The mortgage rate increases from Canada's biggest lenders come as government bond yields rise, signalling higher borrowing costs for corporations.
A corporate bond is not the same as a government bond, which is a low - risk investment.
The conservative investments, such as government bonds, favoured by baby boomers and retirees are producing virtually nothing, as today's low rates demolish returns.
In the larger financial industry, who gets to keep the difference between a historic 8 % return on equities, an «equity - like return», and a historic 4 % return on «risk free» investments, such as government bonds?
For a number of years, concerns had been expressed about the underpricing of risk in a range of financial instruments and the associated search for yield as investors sought higher returns in non-standard financial products as the yield on more standard products such as government bonds was deemed to be inadequate.
The main benefit of investing through peer - to - peer lending platforms, as opposed to investing in traditional fixed income securities such as government bonds, corporate bonds, and bond funds, is that peer - to - peer loans have a low correlation with stocks and bonds, which make them a great diversifier for your investment portfolio.
Some of the largest fixed income sectors, such as government bonds, offer paltry or even negative yields.
It then uses this new money to buy assets, such as government bonds, from private sector businesses including high street banks, pension funds and insurance companies.
The problem, it seems, is «haircuts» — the amounts subtracted from the market value of assets, such as government bonds, that are used as security when a bank borrows cash from another bank.
The cause, it seems, are «haircuts ``, Wall Street jargon for the amount subtracted from the market value of an asset, such as a government bond, that is used as security when a bank borrows cash from another bank.
Debt funds are the mutual funds which invest in different types of fixed income instruments such as Government Bonds, Corporate Bonds, Money Market instruments, Treasury bills etc..
They can sell risky assets such as credit, or buy less risky assets such as government bonds, adding a buffer to their portfolios.
If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as stocks) into a lower risk asset class (such as government bonds or money market funds).
These firms manage your funds and guarantee your principal by sticking to safe investments such as government bonds and GICs.
Call risk may increase in low interest rate environments; when interest rates are low, credit spreads generally decrease between risk - free assets such as government bonds and risky assets such as preferreds.
I explained how investment gurus Larry Swedroe and David Swensen both advise investors to avoid high - yield bonds and instead stick to safer fixed - income investments such as government bonds.
Toronto - Dominion Bank has lifted its posted rate for five - year fixed mortgages by 45 basis points to 5.59 % as government bond yields touched their highest levels since 2011 last week.
The revised version of the SEC's proposal therefore also scaled back this provision, so that fund managers are only required to estimate the time that it would take to liquidate a given asset class, such as government bonds or small - cap stocks.
Moreover, as government bonds have higher investment grade score, the yield rate tends to be low.
Debt funds are mutual funds that invest in fixed income securities such as government bonds & treasury bills.
One way that investors reduce their overall risk is by investing in a variety of different securities, such as stocks and bonds, or even in different types of the same security, such as government bonds and corporate bonds.
On April 27, 2018, Toronto - Dominion Bank (TD) lifted its posted rate for five - year fixed mortgages by 45 basis points to 5.59 % as government bond yields touched their highest levels since 2011 last week.
In contrast, high - quality fixed income investments such as government bonds, virtually eliminate this risk altogether, but offer little or no protection against inflation.
Additionally, in this low - interest - rate environment, the dividend yield offered by dividend - paying companies is substantially higher than rates available to investors in most fixed - income investments such as government bonds.
The dramatic decrease in interest rates that has forced investors to readjust their portfolios toward liquid money and away from interest - bearing assets such as government bonds
It served as an early proving ground for financial engineers who sold investors and regulators alike on the idea that it was possible, through accounting alchemy, to turn risky assets into «Triple - A-rated» securities that were nearly as safe as government bonds.
Being close to retirement, I am now more risk averse and would like to move these stocks to a safer place such as Government Bonds.
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