Sentences with phrase «bond durations as»

Not exact matches

According to Morningstar Direct, $ 59 billion is invested in long - term bond funds and exchange - traded funds (defined as portfolios with average durations above six years).

Funds that own high - quality bonds with shorter durations, such as Fidelity Short - Term Bond, can help reduce your portfolio's sensitivity to rising rates.

Meanwhile, actual and anticipated selling of short - duration bonds as companies repurpose repatriated cash has led to a widening in spreads.

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..

In the fixed - income arena, longer - duration1 bonds tend to be more negatively impacted when interest rates move higher as compared with shorter - duration fixed income securities.

Exchange traded funds (ETFs), such as the iShares Short Maturity Bond ETF (NEAR), the iShares MSCI USA Quality Factor ETF (QUAL), the iShares Core Dividend Growth ETF (DGRO), and the iShares MSCI Japan ETF (EWJ), can provide access to short duration bonds, high quality companies, and Japan.

A bond allocation comprised primarily of individual bonds provides much more flexibility as it relates to duration management and tax efficiency.

As I have covered previously, when you own an individual bond, you invest for a set period of time and get paid interest for the duration or maturity length of the bond.

Specifically, longer - duration bonds are reasserting their role as an effective ballast to equity risk and can be especially helpful in equity - centric portfolios.

Generally, the higher the duration, the more the price of the bond (or the value of the portfolio) will fall as rates rise because of the inverse relationship between bond yield and price.

Finally, we prefer hard - currency EM bonds — particularly high - yielding oil exporters such as Russia, Colombia and Kazakhstan — and short - duration local currency bonds in some countries.

In fact, if you don't hold bonds to maturity, you may experience similar interest - rate risk as a comparable - duration bond fund.

The fund has no targeted maturity, but does target a duration within 10 % of the Bloomberg Barclays U.S. Corporate Investment Grade Bond Index, which as of the end March was 7.5 years.

Characterized as an «all - weather» bond fund by Citywire, the new vehicle is designed for investors seeking both fixed income exposure as well as enhanced duration.

Duration, expressed as a number of years, measures a bond's interest rate sensitivity: The higher the duration, the higher the interest raDuration, expressed as a number of years, measures a bond's interest rate sensitivity: The higher the duration, the higher the interest raduration, the higher the interest rate risk.

One term that bond ETF investors must be familiar with as it relates to their portfolio is: effective duration.

High yield (HY) spreads — the difference between the yield of a high yield bond and a Treasury note of similar duration — are down 2 percentage points from their February peak, as investors buy high yield bonds.

For individual investors, duration is primarily used as a measure of a bond fund's sensitivity to prevailing interest rates.

Dave Nadig, CEO of ETF.com and a well - known ETF expert, recently suggested as much, noting that «Duration hedging hasn't yet had its «hedge the yen» moment when investors discovered the power of currency hedging en masse, but like currency - hedged ETFs, duration - hedged ETFs may start finding a place not necessarily as core holdings, but as finely honed tools for tweaking duration exposure in a broader bond - portfolio contextDuration hedging hasn't yet had its «hedge the yen» moment when investors discovered the power of currency hedging en masse, but like currency - hedged ETFs, duration - hedged ETFs may start finding a place not necessarily as core holdings, but as finely honed tools for tweaking duration exposure in a broader bond - portfolio contextduration - hedged ETFs may start finding a place not necessarily as core holdings, but as finely honed tools for tweaking duration exposure in a broader bond - portfolio contextduration exposure in a broader bond - portfolio context.»

«If you're referring to the Slow & Steady portfolio then I'm fine with the regular bond fund as its duration is below the portfolio's time horizon» TA

As these have a duration of appropriate 2.5 years, won't they roll over into higher yielding gilts / bonds?

As yields have fallen, duration, or rate sensitivity, has risen, meaning that the risk associated with a change in rates has generally risen for most bond benchmarks and traditional funds.

The on - the - run 30 - year bond has a coupon of 2.25 %, which is about as low as you can get, which means lots of duration.

ANSWER: - Morgan Stanley's Global Investment Committee supports that interest rate normalization will provide headwind for investors using bonds for principal preservation, as rates rise its likely longer duration bonds will fall.

1 Some people refer to duration as a measure of bond price volatility, but volatility is something different.

Yield — A combination of the dollar price and the interest rate for the duration of the bond, expressed as a percentage.

As a result, typical duration - heavy bond funds may not provide as effective a hedge against equity risk as they used tAs a result, typical duration - heavy bond funds may not provide as effective a hedge against equity risk as they used tas effective a hedge against equity risk as they used tas they used to.

You can always shorten your bond duration, but too much and then it essentially becomes the same asset class as cash or money market funds anyway.

Shorter ‐ duration bonds do not provide the same degree of portfolio diversification as longer ‐ duration bonds.

But we prefer shorter - duration Treasuries, as policy shifts that steepen global yield curves make us cautious of longer - duration U.S. government bonds.

Even without any selling, the value of the fund's share price would fall (roughly as a function of the fund's average «duration», a measure of interest rate sensitivity that is a related to a bond's maturity).

Longer ‐ term bonds carry a longer or higher duration than shorter ‐ term bonds; as such, they would be affected by changing interest rates for a greater period of time if interest rates were to increase.

RIAs are eligible to participate in the Program if they represent to Fidelity Investments that they meet the following criteria: (1) RIA is an investment adviser registered and in good standing with the U.S. Securities and Exchange Commission and / or any applicable state securities regulatory authorities or is exempt from such registration; (2) RIA's representatives who provide services to referred clients are appropriately registered / licensed as «Investment Advisers Representatives» in required jurisdictions; (3) RIA charges fee - based, asset - based, or flat - rate investment advisory service fees (which may include hourly fees); (4) RIA will maintain a minimum of $ 350,000,000 in total regulatory assets under management, as reported in response to Item 5 in Part 1A of the RIA's Form ADV, throughout the duration of RIA's participation in the Program; (5) RIA and all associated persons of the RIA who manage client assets or who supervise such associated persons shall at all times be covered through both Errors and Omissions Liability Insurance and Fidelity Bond Coverage; and (6) RIA maintains a minimum of two principals or officers as well as a minimum of five employees.

The iShares Lehman Credit Bond Index (NYSE: CFT) has about the same duration as LQD at just north of six years.

These flows were directed mainly into lower risk exposures such as shorter duration bond ETFs and cash equivalent funds.

Regarding the bonds, curious as to your duration and yield.

As there are issues with both money market funds and ultra-short term bond funds, we recommend that you chose a short - term or low - duration bond fund for this purpose.

This reflects both the increasing risk of long - dated government bonds — as rates drop, duration or rate sensitivity has risen — and the fact that traditional bonds have never been more expensive.

Acquire the monthly total credit premium of each corporate bond as the difference in total (coupon - reinvested) returns between the bond and a duration - matched U.S. Treasury instrument.

Interest rate sensitivity, also known as duration, is based on the Barclays U.S. Credit Bond Index (all maturities), and short - term bonds represented by the subset of bonds within the index with maturities of 1 - 5 years (Barclays 1 - 5 Year U.S. Credit Bond Index).

The duration of our bond portfolio remains relatively short as a means designed to protect against rising interest rates.

This also means that triple net lease REITs, which are often used by yield - hungry investors in a low interest rate environment as bond alternatives, can be thought of as very long - term duration bond proxies.

Duration, or interest rate sensitivity, of bond investments has steadily risen recently as investors have piled money into fixed income.

As a result, typical duration - heavy bond funds may not provide as effective a hedge against equity risk as they used tAs a result, typical duration - heavy bond funds may not provide as effective a hedge against equity risk as they used tas effective a hedge against equity risk as they used tas they used to.

This reflects both the increasing risk of long - dated government bonds — as rates drop, duration or rate sensitivity has risen — and the fact that traditional bonds have never been more expensive.

As a result, the impact of interest rate fluctuations on strip bonds, known as the bond duration, is higher than the impact on periodic coupon - paying bondAs a result, the impact of interest rate fluctuations on strip bonds, known as the bond duration, is higher than the impact on periodic coupon - paying bondas the bond duration, is higher than the impact on periodic coupon - paying bonds.

As of Nov. 10, 2017, the yield - to - worst of the S&P China Bond Index was 4.5 %, which widened 150 bps over the 12 - month period, with a modified duration of 3.86.

As of January 2017, the investment grade corporate bond index bears the highest duration of 6.9, while the two high yield indices have much shorter durations of approximately 4.2.

Vehicles to consider: A mix of highly liquid accounts, such as money market funds, and less - liquid options, such as CDs or short - duration high quality conservative bond funds

There is a change going on here, and as for my balanced mandates, I think it means that I toss out my long bonds [TLT] for a small loss, and keep my duration short.