Sentences with phrase «because bond buyers»

Find out why negative interest rate policies are failing because bond buyers do not want a negative yield and saturated borrowers want to pay off debts.

Not exact matches

When rates rise, bonds drop in value because fixed income buyers prefer investing in new bonds with higher yields.

That will be important to private investors, because if the central bank held itself out as a privileged bondholder, effectively passing more risk on to other bond holders, other buyers might undermine the stimulus program by demanding higher interest rates.

When bond traders at the CBOT wade into the soybean pit because that is where the «action» is (high prices and volume), then I saw the most anxious buyer set the highest prices.

I expect bond prices to remain anchored because the ECB will still be a big buyer of bonds.

Because bonds with longer maturities have a greater level of risk due to changes in interest rates, they generally offer higher yields so they're more attractive to potential buyers.

Because the market has sold off since the June issue, buyers were required to pay $ 95.291 per $ 100 face value for each bond.

That's because bonds trade over-the-counter (OTC): Buyers and sellers negotiate bond prices privately, meaning it can be tough for an investor to find the bonds they want to buy, or get a price for the bonds they want to sell.

In other words, if the buyer's bid was accepted, he would pay less than the current bond holder did when the bond was first issued, because prevailing interest rates are now higher than 5 % on similar tax - exempt bonds.

And also according to these market analysts, Japanese investors are the main buyers of European government bonds because Japanese investors supposedly see European bonds as a more attractive alternative to U.S. government bonds.

Less liquid corporate and municipal bonds can have wider spreads because the pool of potential buyers is smaller.

Because they pose a greater risk of default than high - quality bonds, junk issues must yield more to attract buyers.

This is very rare, but when it happens, it leaves a lot of very unhappy investors; their coupon payments are taxed as ordinary income and, if they choose to sell the bond, the price they receive will be reduced because buyers would require a higher yield on a taxable bond.

At the time of purchase, the buyer must recognize whether the bond is subject to de minimis because the after - tax return could be substantially less than expected.

Liquidity risk is the risk that you won't find a good price for your bond when you want to sell it — because there are so many more bond issuers than stock issuers, and because bonds are not exchange - traded, there may not be a willing buyer.

The welcome effect is that people took it as a matter of course that stocks were real businesses bought for ownership, although stock buyers had the reputation of being slick and wily because their ownership positions were based on the current and future profitability of companies rather than secured bonds which had been the hallmark of traditional conservative investing accounts because property could be sold to return part of your principal in the event that the business failed.

When bond traders at the CBOT wade into the soybean pit because that is where the «action» is (high prices and volume), then I saw the most anxious buyer set the highest prices.

At this point I don't like using buyer's agency contracts because frankly if the only reason a client is continuing to work with me and show loyalty is because of a piece of paper that bonds us I have failed miserably in my service.