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.
So, it is a very different market than it was 10 years ago, and you're going to see a lot of corporate
bond issuance
as these infrastructure projects go out there, and you can capture some pretty good yields and you know what you're
buying because it's a corporate
bond.
As oil prices have fallen, defaults in the sector have risen — about a quarter of all corporate
bond defaults in 2015 were energy related, according to Moody's — and that's made traders even more reluctant to
buy.
Inflation is a concern within Germany
as it's still haunted by the hyperinflation of the 1920s and top economists — like Bundesbank President Jens Weidmann — have been noticeably cautious on too much
bond buying from the ECB.
However, recently, the economic recovery seen in Portugal since the sovereign debt crisis has indeed begun affecting the way agencies such
as Moody's and Standard & Poor's see the economy, indicating that in the near future more investors could be considering
buying Portuguese
bonds.
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.
Finance Minister and former premier Taro Aso - who some suspect of dreaming of a come - back of his own - said on Tuesday Japan had no plan to
buy foreign currency - denominated
bonds as part of a monetary easing program.
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.
The interest rate on 10 - year
bonds was 1.79 % at the end of 2014 — about half
as much
as the federal government had to offer to get investors to
buy its debt a decade ago.
«If you think Puerto Rico's
bonds are worth 80 cents,
buy them and sell AGO, that's what we did
as a hedge,» Einhorn said.
Since those investors are just looking for the highest returns, and not say
buying bonds their financial advisor told them they needed
bonds as part of their retirement planning, they are more likely to jump when rates rise.
QE (
as it's known in shorthand) involves the central bank's
buying financial assets like government
bonds.
Many observers are casting
as a surprise the U.S. Fed's decision not to cut back on its US$ 85 billion monthly
bond buying program.
One way to truly grow your income is to
buy more annuities, in which the investor has to pay you annual sums,
as well
as bonds that will also pay out over time.
The higher
bond yields go, the more pension funds will
buy as they look to lock in long - term income streams to meet their liabilities.
Pension funds» portfolio rebalancing can be achieved by selling equities
as well
as buying bonds.
As of right now, U.S. bonds are still seen as a safe asset that people and countries buy when the global economy goes awr
As of right now, U.S.
bonds are still seen
as a safe asset that people and countries buy when the global economy goes awr
as a safe asset that people and countries
buy when the global economy goes awry.
«I think the pressure [to increase interest rates] will be there, because the Fed in the U.S. should stop printing money, and taper off
as they say,» Mr. Flaherty, referring to the dialling back of U.S.
bond -
buying, told CTV in an interview aired Sunday.
China could take a more measured approach, said Reinhart, and not
buy new
bonds as old ones mature.
Critics of the
bond buying programs, known
as quantitative easing or QE, warned that it would lead to runaway inflation.
Rather than follow the Stalin model of turning an agrarian society of Russia into a state - owned industrial superpower like the USSR - killing millions of your own people in the process, incidentally - Myerson suggests that the government own all businesses by
buying the stocks and
bonds of all businesses
as an «investment» in the private sector.
Furthermore, the 1 percent you pay to your money manager doesn't always cover the costs of
buying and selling the stocks and
bonds in your portfolio or the sales charges (also known
as loads) and administrative fees charged by the mutual funds your manager puts you into.
While it's better to invest than keep money under a mattress,
buying risk free securities, such
as guaranteed income certificates or low - yielding government
bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.
Central bankers see it
as a tool they can use to calibrate their economies, like an interest - rate adjustment or creating money to
buy bonds.
Such measures could include restarting ECB
bond -
buying programs, although Rajoy goes
as far
as to suggest «centralized control of [European] finances.»
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.
These criticisms have grown
as the central bank has rolled out increasingly easy policies, including three big
bond -
buying programs.
In her first congressional hearing
as nominee to become the world's most powerful central banker, Yellen didn't seem in a hurry to scale back the Fed's massive
bond buys, also known
as quantitative easing (QE).
While a nine - month extension at a reduced pace is viable under current rules, another move could require more creativity
as the ECB would be running low on German
bonds to
buy.
Certainly, it offers an attractive level for longer - term investors such
as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to
buy bonds rather than equities.
Rates for home loans eased up slightly
as investors
bought more
bonds, sending yields down a few basis points.
A hundred small funds offering daily liquidity and
buying bonds indiscriminately would be roughly
as bad
as five big funds doing the same thing.
Bullard's comments were notable because he was Ben Bernanke's sidekick in pushing the
bond -
buying program known
as quantitative easing that the Fed adopted late last year.
Stay the course and keep
buying VTSAX on the cheap and at the same time adjust your asset allocation slowly into
bonds as you get older.
If foreigners stopped
buying bonds, dealer inventories would adjust
as the current account deficit falls.
You're still dealing with all of the same
bond risks
as every other investor when you
buy individual
bonds — interest rate risk, credit risk, inflation risk, duration risk, default risk, etc..
Bonds can act
as a source of liquidity for rebalancing purposes and to
buy stocks on sale.
As the Fed pares its balance sheet, it will
buy fewer and fewer Treasury
bonds and agency mortgage - backed securities.
I plan: 5 % — swing for the fences 10 % — save for big blue chip bargain
buys that pop up throughout the year 10 % — VNQ, other than our primary residence, I have no exposure to RE, so this should help with that 15 % — VXUS, international index exposure 60 % — VTI, total stock market index (
as I get older, I will be also adding BND or a
bond fund, but at 32, I'm working on building equities!)
For the money markets, it's not just that the Fed is
buying fewer
bonds as part of the taper but
as the Fed holdings roll off, the Treasury needs to reissue to the private sector in order to pay the Fed back.
The new Fed chair will likely take the reins from Bernanke in January of next year, right
as the central bank dials back its unprecedented $ 85 - billion a month
bond -
buying program.
So the big question in the world of economics is whether or not the Federal Reserve will raise interest rates and end their
bond buying program known
as quantitative easing.
Rather than paying these pensions out of current income
as it is earned or plowing their earnings back into investment in their own business, companies take their income and «financialize» it by
buying stocks and
bonds for their pension funds.
If you
buy a
bond for less than face value on the secondary market (known
as a market discount) and you either hold it until maturity or sell it at a profit, that gain will be subject to federal and state taxes.
Many
bonds trade at negative yields because the European Central Bank (ECB) and the Bank of Japan (BOJ) continue to
buy bonds as part of their management of monetary policy.
More than just tempering Gross's anti-equity remarks, the longtime advocate of
buying and holding equity - based index funds and ETFs went so far
as to say that «equities today are more attractive relative to
bonds than at any other time in history.»
When the jig is up in a couple of years, sell most of your stocks,
buy bonds which will do very well
as the stock market and economy implode.
As an aside, iShares 20 + year Treasury
Bond ETF ($ TLT) is the regular, non-leveraged version of TMF (which ties up a lot more
buying power in one's account).
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.
The thinking is that,
as the
bond buying has not worked, then the best way to keep business flowing (and markets steady) would be to keep rates low, which encourages, at least theoretically, companies to borrow, expand and grow the economy.