Sentences with phrase «bank bond buying»

Central - bank bond buying, which occurred in the 1940s to finance the war and the subsequent rebuilding of Western Europe under the Marshall Plan, may also keep a lid on yields.

The combination of political dissatisfaction, greater emphasis upon fiscal spending and a reduction of central bank bond buying is beginning to add to a degree of caution, in particular in the risk - free bond markets.

Not exact matches

Under this hypothetical policy, governments transfer money directly to taxpayers to encourage spending, a handout funded by issuing bonds with a coupon of zero and no maturity date, which central banks buy.

The European Central Bank on December 3 dropped one of its main policy rates to negative 0.3 % from negative 0.2 % and said it would extend its bond - buying program, under which it creates euros to purchase debt, to at least March 2017.

Much of the shift lower in our yield forecasts derives from the view that the ECB [European Central Bank] will continue to buy bonds in its QE [Quantitative Easing] program.

At Thursday's auction of a 7.37 percent 2023 bond, the Reserve Bank of India was only able to sell about 430 million rupees out of the 30 billion on offer into the market, with the remainder having to be bought by primary dealers.

The answer is straightforward: The Bank of Japan can buy government bonds on the open market, paying for them with either currency or deposits at the Bank of Japan, what economists call high - powered money.

In the past, banks would happily buy corporate bonds that investors wanted to dump and then either sell them to someone else or package them up in another type of security.

One line of thinking now is that the central bank may opt to combine the two programs and buy longer - dated bonds more aggressively, then set as its new target the total balance of bond holdings or the size of its balance sheet, the sources said.

The easiest way for the central bank to ramp up the size of its balance sheet would be to buy longer - dated government bonds.

Canada's DBRS is the only credit rating agency willing to give Portugal an investment grade, which allows the European Central Bank to buy Portuguese government bonds.

Among individual banking stocks, Bankia, Credit Agricole, ING and Banco Santander are «buy» - rated names, according to Deutsche Bank, as they all have a high positive correlation to U.S. bond yields.

An executive board member of the European Central Bank (ECB) has told CNBC that it is too early for the central bank to start discussing a reduction in its bond - buying progBank (ECB) has told CNBC that it is too early for the central bank to start discussing a reduction in its bond - buying progbank to start discussing a reduction in its bond - buying program.

But, «the U.S. and the Bank of England have gone to more extremes because they have interest rates below the Bank of Canada's, and they've also been buying bonds to lower longer term interest rates,» Shenfeld added.

Markets in Europe closed higher Thursday after the European Central Bank (ECB) announced that it plans to extend, but reduce, its bond - buying program.

The market remains skeptical that the Bank of Japan can keep to its bond - buying program, says Alvin Liew of UOB.

(The devaluation of the peso brought the value of his mortgage down to $ 50,000, which he was able to pay off by buying bank bonds at a 50 percent discount.)

QE (as it's known in shorthand) involves the central bank's buying financial assets like government bonds.

Expectations have grown that ECB policymakers may take another small step in exiting the bank's ultra-easy monetary policy after dropping a long - standing pledge to increase bond buying if needed at its meeting in March.

The exact mix of shares and contingent convertible bonds the HFSF will buy from banks in exchange for any fresh funds it will provide will be decided by the cabinet.

Strategists at most big investment bank are advising extreme caution on buying bonds too.

These include currency - hedged ETFs, triple - levered ETFs based on commodities, unconstrained bond funds with short positions betting against U.S. Treasurys, private equity funds, emerging market debt instruments, historically less - liquid bank loan funds, and all manner of actively managed strategies packaged in supposedly easy to buy and sell wrappers.

But «investors» is a funny word these days of central - bank craziness: the entity that buys every Japanese government bond that isn't nailed down is the Bank of Jabank craziness: the entity that buys every Japanese government bond that isn't nailed down is the Bank of JaBank of Japan.

The Eurozone crisis could be ended tomorrow if the European Central Bank (ECB) announced it was going to launch a mammoth campaign to continue buying the bonds of troubled members of the European Community (EC) until growth in EC output and employment bailed them out of their debt burdens.

Back in 2010, the bank paid $ 550 million to the Securities and Exchange Commission to settle charges that it had misled investors into buying financial instruments tied to subprime mortgage bonds.

If Yellen's Fed fails to convince Wall Street about the policy path, a rate increase could trigger financial turmoil of the sort seen in 2013, when investors were caught off guard by the central bank signaling an end to its bond - buying program.

But it also launched two new schemes, one to buy 10 billion pounds of high - grade corporate bonds and another — potentially worth up to 100 billion pounds — to ensure banks keep lending even after the cut in interest rates.

«This is the first time in 102 years, A, the central bank bought bonds and, B, that we've had zero interest rates and we've had them for five or six years... To me it's incredible.»

The Bank of England cut interest rates on Thursday for the first time since 2009, revived its bond - buying program and said it would take «whatever action is necessary» to achieve stability in the wake of Britain's vote to leave the European Union.

To buy nonprofit bonds, contact your portfolio manager — these types of bonds are typically sold first to investment banks, which then extend them to individuals.

Banks currently have about $ 2.6 trillion at the Fed, a trove that swelled during a massive Fed bond - buying campaign aimed at fighting the 2007 - 2009 recession.

Some investors are now making calls that the euro zone's central bank could end its massive bond - buying program by the end of next year, with a potential rate increase in the fourth quarter.

In the five months to February 22, the Bank of England (BoE) bought # 7.4 billion ($ 9.6 billion) of corporate bonds.

And that's just the latest event that has bond traders feeling uncertain following a similar action from the Bank of Japan, which recently trimmed its bond buying.

Yet while the Fed has eased policy to lower joblessness and raise inflation in the wake of the 2007 - 2009 recession, central banks such as the BoE have also launched accommodative bond - buying programs despite higher - than - desired inflation rates.

Bernanke strongly defended the U.S. central bank's bond - buying stimulus, saying he sees little risk of higher inflation in the near term.

Last December, the bank announced it would extend its bond - buying program albeit at a reduced pace of purchases.

These criticisms have grown as the central bank has rolled out increasingly easy policies, including three big bond - buying programs.

Like many major central banks, the Bank of Japan has been buying the country's bonds in order to stimulate the economy.

The most widespread opinion is that the European Central Bank is going to announce a new round of bond - buying next week to try to stimulate the Eurozone economy, which will further depress the value of the euro and make the franc yet more attractive.

It started with the Swiss National Bank's (SNB) decision to unpeg its currency from the euro earlier this month, followed by a larger - than - expected bond - buying program from the European Central Bank (ECB) on January 22.

The European Central Bank is all but certain to cut back on its bond - buying stimulus on Thursday, one of the biggest factors supporting the rally in global stock markets in recent months.

Another point, perhaps, is that it's no worse for the Treasury to print a trillion - dollar gold coin than it is for the Federal Reserve to buy trillions in mortgage securities to save banks and the bond market.

Banks are the dealers of corporate bonds, and their willingness to take risks by buying and selling bonds has been shrinking.

On the other hand, there are rumors of progress being made on some of the creative, banks - buying - bonds proposals.

If there's a bond crash, the banks won't be buying bonds, but they would never have been buying bonds in a crash.

By providing liquidity to the broader eurozone (in the form of its monthly bond - buying program), the European Central Bank (ECB) is helping to limit the scale and duration of any contagion related to events in Greece.

The yield on the U.S. 10 year Treasury bond recently hit 9 - month highs and the 2s10s spread widened on news of the Bank of Japan trimming its long - dated bond buying program and questions around China's ongoing purchase of U.S. Treasuries (USTs) with its foreign - exchange reserves.

In the weeks that followed, the banks appear to have used a sizable share of the cash to buy the European bonds so desperately in need of customers.

You can buy a noncompetitive - bid Treasury bond through a broker, dealer, bank or via TreasuryDirect.gov.