Sentences with phrase «bond investors did»

Bond investors didn't do much better — they underperformed by 6.66 %.

The additional 4 % that equity investors earned over bond investors did not come free, but represented payment for the increased risk that equity investing entails.

If the stock market happens to crash around the time you are ready to retire, a too true fact for many in 2008, the bond investor doesn't have to worry because his money is safe.

But, just like the furry creature that lived under your bed as a kid, the noneconomic bond investor does not exist.

But, just like the furry creature that lived under your bed as a kid, the noneconomic bond investor does not exist.

It would be interesting to know whether GIC investors stray from their chosen path as much as bond investors do.

As Dutkiewicz remarks, domestic bond investors don't punish companies the way equity investors do.

Bond investors do their own due diligence, and do not depend on bond ratings for their analysis.

As far as I can tell, most common stock investors are interested primarily in total return, with cash return being distinctly secondary, and most bond investors do not own common stocks because they need contractually guaranteed interest payments, (e.g., banks and insurance companies).

The fact that the Federal Reserve is raising its overnight lending rate and seeing little reaction from the yields of intermediate and longer - term bonds is an indication that bond investors do not believe in the strength of the economic outlook going forward.

The bond investor does not worry about daily marks.

Not exact matches

Canadian investors tend to stick close to home when buying bonds and other fixed - income investments, but diversifying is worthwhile if you do your homework

«If they do target aggressively the 2 percent inflation target, and undertake a significant amount of QE, that may have an impact on underlying JGB (Japanese government bond) yields as investors become concerned over Japan's debt,» he said.

What that means is that you are in an environment that is going to have further trouble in terms of investment returns that are in areas that are based on economic growth and areas that do relatively well like bonds... Broadly speaking, I think that investors should be looking for lower prices on most risk assets in these developed countries with the exception of Japan.»

It's a surprise to most of his would - be investors, Strisower says, but retirement funds don't have to remain safely snuggled in mutual fund and bond investments.

The aging population may also be playing a role in investors continuing to chase bonds, even when it doesn't appear to make sense.

While most financial advisors feel that the simple 60/40 allocation between U.S. stocks and bonds doesn't provide enough diversification for most investors anymore, they also think the expanding choice now available to investors cuts both ways.

So, how can a do - it - yourself investor find out what the duration of a bond is?

Sure, some of that had to do with Goldman beating earnings expectations, passing its Fed stress test and unexpectedly making a killing trading bonds, but the election likely factored in too, and investors can thank Clinton for that.

The idea that small companies should be able to sell small amounts of stocks and bonds to investors — which they've been prohibited from doing since the Depression — has exploded over the past few years.

«Investors were saying that the bond market was done and it was time to reallocate into divided - paying equities,» said Matt Hougan, president of ETF.com, but he says that trend hasn't sustained itself.

First, he believes that an investor in a low - cost S&P index fund who reinvests all dividends will do better — very likely substantially better — than an investor who buys a 17 - year government bond and reinvests all of his coupons in the same instrument.

But at least one analyst who tracks big Wall Street firms» bonds says there may be an even bigger problem: Investors, pressured by the need to generate income, simply don't care whether the banks are too big to fail — one way or the other.

A first observation is that bond trading is done between investors and dealers, and we know what a dealer is.

For most investors it probably doesn't make sense to invest any further out than intermediate bonds or bond funds (10 year maximum maturity) to lower the risk of large losses.

According to fund tracker Morningstar: «A mutual fund is a basket of stocks, bonds or other types of assets that is professionally managed by an investment company on behalf of investors who don't have the time, know - how or resources to buy a diversified collection of individual securities (stocks, bonds etc.) on their own.

, then the next question is «what else do I need to know to become a savvy bond investor?»

A few people asked me to show similar charts on bonds, as many investors are wondering what the impact of a potential rise or sideways slog in rates could do to future returns in fixed income.

Given those durations, an investor with 15 - 20 years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and dividends.

What we have really seen over the past several years, in terms of the appreciation of markets and the decline of interest rates based on what the Fed has been doing, is a result which has eliminated the possibility of investors in bonds and stocks to earn an adequate return relative to their expected liabilities.

The important questions that investors need to ask are why do I own bonds, and what purpose are they serving in my portfolio?

While investors probably don't want to overweight TIPS in a portfolio, those whose portfolios are dominated by traditional bonds may want to consider some exposure to inflation - protected instruments.

Bond funds took in more than twice the amount of investor money as equity funds did in 2017, despite being outperformed by equities six to one.

The losses investors have felt from high quality bonds were nothing compared to stocks, and they did not show up on their statements...

Not only did bonds provide some stability while stocks fell, but more importantly, they provided investors with dry powder to rebalance into stocks as they went on sale.

These investors may have to accept lower long - term returns, as many bonds — especially high - quality issues — generally don't offer returns as high as stocks over the long term.

If the company's underlying stock decreases in value, an investor can still hold onto the convertible bond and receive the bond's par value at maturity, as long as the issuer does not default.

It doesn't matter if you are a fixed income investor considering purchasing bonds issued by a company, an equity investor considering buying stock in a firm, a landlord contemplating leasing a property to an enterprise, a bank officer making a recommendation on a potential loan, or a vendor thinking about extending credit to a new customer, knowing how to calculate it in a few seconds can give you a powerful insight into the health of company.

When companies are doing well, investors are able to convert these securities, debentures or bonds, into stocks, which has a higher value.

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.

It served up a $ 500 million «social bond» to investors, and in doing so, expanded the use of the bond market well beyond its usual remit.

Higher risk bonds have had their prices bid up, and as a result they do not provide investors with as much yield as would be expected.

WHAT DOES THIS MEAN FOR BOND INVESTORS?

It's worth noting however, that bond ladders don't completely eliminate rate risk, the price of bonds in the ladder continues to fluctuate as rates change, and an investor will still face periodic reinvestment risk for some portion of the portfolio.

Duration Risk: If interest rates do ever decide to rise, duration will be the most important statistic for bond investors to pay attention to.

While that is interesting, it doesn't tell us about returns to corporate bond investors.

Credit Risk: Investors that are chasing yield in lower qualiity bonds are doing so by increasing their credit or default risk.

Which doesn't cover investments in shares, the returns on which are directly affected by changes in the corporate tax rate (or the myriad of other investment vehicles liked bonds, REITs, mutual fund trusts, etc. that make up the bulk of the universe for Canadian investors).

This makes bonds a relatively heterogeneous asset class in which many securities are thinly traded.3 At the same time, institutional investors often hold assets to maturity and, when they do trade, do so in large amounts.

If the jury found that Hogan was entitled to $ 100 million in damages and Gawker was required to post a bond of at least that amount, the company would not be able to do so without selling itself to a larger company or bringing on outside investors.