Sentences with phrase «because bond funds»

This would explain the increase in bond fund inflows because bond funds are ideal for income oriented investors; which is an important aspect of retirement investing.

This is because bond funds invest in a variety of individual bonds, which are collectively designed to provide potential income continuity to the fund.

This is because bond funds tend to rebalance on a regular basis, to invest coupons, adjust to market movements, or take advantage of opportunities.

However, because bond funds» yields fluctuate with the market, reinvestment risk still exists.

Other risks typically associated with bond investing, such as default risk and call risk, are mitigated because a bond fund is made up of many individual bonds.

Short Term Bond Funds — When bond yields and interest rates rise mid to long term bond fund values tend to initially drop considerably because the bonds these funds are holding have lower yields.

I remember reading long ago that if you want to add bonds to your portfolio, to buy them directly rather than in a bond mutual fund because a bond fund holds more risk, especially when it comes to government bonds.

Because the bond funding of subprime mortgages collapsed, lenders stopped making subprime and other nonprime risky mortgages.

Not exact matches

And so what the Fed is basically saying here is that because investors are using mutual funds to invest in bonds, instead of owning the bonds, there could be a problem if investors all want to leave at the same time.

Because bond prices tend to move in the opposite direction of stock prices, you can also buy bond funds to further balance the risk of those stock funds.

If rules allowed, Fink added, the guy's pension fund should sell all of its bonds «and go 100 % equities» because that's where tomorrow's returns will be made.

Because hedge funds are not required to report their bond holdings to the SEC (although they do have to report equity positions), we don't know exactly who owns how much of which Puerto Rico bonds.

And in those accounts you're probably investing in all kinds of different things because you can choose from thousands of different stocks, bonds, mutual funds, index funds, REITs, MLPs, and so on.

Investment manager Third Avenue announced plans to liquidate its high - yield - bond mutual fund, and it said it would ban redemptions because it was unable to exit positions quickly.

Betterment recommends its clients put their emergency funds in a portfolio with between 30 percent and 40 percent in stocks and the rest in a diversified allocation of bonds because interest rates are so low, Holeman said.

Open - end bond mutual funds — the most common type of bond fund — are among the most treacherous investments because they can collapse.

The hedge fund would break even on its debt investment if the Berkshire bid prevails because gains in some parts of its debt holdings, which would be paid out in full, would offset losses in the unsecured bonds it holds, where it would take a deep haircut, the people said.

When rates rise, this is a huge plus for bond funds because they can continuously reinvest at higher rates, which offsets some of the sting you get from the price decline.

And retail investors, who have poured massive amounts of money into bond mutual funds because cash had a near - zero yield, can now park money in T - bills and earn close to 2 % with no risk of loss.

Holding individual bonds is often looked at as being superior to bond funds because you can simply hold an individual bond until maturity.

And those numbers overstate the effect of bond fund trading because they exclude bond trading at regional brokerages, which play a large role in the municipal securities market.

Because individual bonds and bond funds distribute income differently and treat your principal differently, there are also some differences in how that income and any capital gains are taxed.

Kushner's 666 Fifth Avenue benefited from a highly unusual appraisal Kushner Companies» record $ 1.8 billion acquisition of 666 Fifth Avenue in 2007 didn't look that risky to the bond investors who funded it, because of a highly unusual appraisal.

The shale oil industry was scam by the big private equity funds who took a flier on the shale business because the bond market gave them access to dirt cheap capital thanks to the Fed's ZIRP.

I buy a combination of specific municipal bonds in California because that's where I reside in where I can not pay state income taxes on the dividends, I also have a California municipal Bond fund, and a nationwide muni bond fBond fund, and a nationwide muni bond fbond fund.

This belief effectively subsidizes the industry because it allows banks to borrow much more cheaply in the bond market than they otherwise could, making equity funding proportionately less attractive.

The fund industry has pumped out «alternatives» to stocks and bonds because the new strategies typically charge individuals higher fees.

In the most recent quarter, however, the competition was less fierce because investors were pulling money from bond funds.

Interest rates have continued to be pushed lower and lower and lower and most of this is because the Fed keeps on adjusting that federal fund's rate and adjusting interest rates down in the way that they do that is by putting cash into the market and buying back bonds or short - term bonds with the federal fund's rate.

Existing bonds or bond fund values, however, will drop as interest rates rise because investors can get higher rates on newly issued bonds.

Yes the Index - linked fund is more susceptible to interest rate risk than the regular bond fund, but not by the nature of it being a linker, it's because the average duration is longer.

But, because you'll be withdrawing in this phase, you may prefer a rolling ladder of bonds for absolute control or settle for a short - term bond fund to balance convenience and volatility.

Another reason to hold shares in the high - yield fund is because of the way the bonds react to the economy and interest rates.

Borrowers issue high - yield or «junk» bonds because they are considered too risky to raise funds through established channels.

This is because while unconstrained funds are still primarily dedicated to fixed income instruments, they behave very differently than traditional bond funds.

This is because, as I write in my new Market Perspectives piece, «Removing the Constraints: Understanding the Risks and Opportunities of Unconstrained Bond Funds,» unconstrained funds offer the potential to mitigate some of the challenges enumerated aFunds,» unconstrained funds offer the potential to mitigate some of the challenges enumerated afunds offer the potential to mitigate some of the challenges enumerated above.

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declBond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond to decline.

So you are saying that LS20 is bad to hold outside a tax wrapper, because the entire dividend is taxed at normal income tax rates (20/40/45), whereas buying a 4:1 mix of a pure bond fund and pure equity fund should save some tax, because the div from the equity fund is taxed at dividend tax rates (7.5 / 32.5 / 37.5) and it benefits from a # 5k allowance (reducing to # 2k, next year)?

While the chances that one of the bonds in the portfolio will default are higher because of the mutual fund's large number of holdings, the loss in relation to the total holdings will be smaller.

The reason for choosing a 60 % equity / 40 % equity / bond allocation is because it's a common allocation in balanced portfolios as well as in multiasset funds.

You just had Bill Gross leave the largest bond fund, the Pimco bond fund, because he said that he didn't think the Federal Reserve was going to be able to raise interest rates on a 10 year bond over 2 %.

He lost money because a lot of other funds have made money gambling on corporate junk bonds that are yielding about 6.5 % now.

«A typical investor who is investing in a fund such as the iShares Core U.S. Aggregate Bond ETF (AGG A-98) may want to hold on to that investment, because even in a rising - rate environment, they are going to get the diversification benefits of that exposure,» Tucker said.

sorry this is a bit of the subject does anyone know what the situation with our overall debt is at the moment and what our repayments are i was under the impression that we are at about the # 245 million mark gross debt and about # 97 net debt are the stadium repayments lower now or something is the bonds interest dropped lower inprice we were paying something like # 20 - # 30 million in repayments but heard its down to about # 15 million per yr now i know we will have broken throught the # 300 million mark in revenue now i am guessing that contributes more to the transfer funds or if not what makes up the transfer funds in the club i.e deals or match day revenue plus cash in the bank which stands at a high level but must be just in case we might default on a payment we need heavy cash in hand to bail us out this side of the club really intrigues me as it is not a much talked about subject unless you are into that type of area of work or care about the general fianacial outcome of the club does anyone have more insight into our finances would be great to hear from anyone about this matter cheers gonerwineverything (because we are)

Park District officials have said they are uncertain how they can raise the necessary funds because the state «s mandated tax cap prohibits any non-referendum bond sales.

Because bond and interest funds will be retired, district residents would not see an increase in their tax bill if the referendum initiative is approved, Mammoser said.

LeBarre said the bond measure was approved because the school district worked with members of the community, discussing the need for resources to help boost their children's long - term success with improved nutrition and the plans for how the funds will be used to accomplish these goals.

The Park District has $ 450,000 in outstanding general bond indebtedness because of a 1989 bond issue for $ 565,000 that funded miscellaneous expenses and construction of a gymnasium and locker rooms next to its Thorndale location.

However, the $ 335,000 set aside for the renovations comes from a special bond fund that must be used by the end of the year or the Park District could lose the money because of federal laws.

HSBC declined to participate because its larger customer deposits means it would lose money by taking part in credit easing, which involves a government guarantee on bonds issued on wholesale funding markets.