Sentences with phrase «bond investors worry»

Many bond investors worry about rising interest rates, but perhaps not everyone should.
Many bond investors worry about rising interest rates, but perhaps not everyone should.

Not exact matches

[A] s rates reached their lowest level ever in 2016, investors rather worried about the «biggest bond market bubble in history» coming to a violent end.
What should worry you is the absence of long - term fundamental investors who will buy bonds — intermediated by dealers, sure — when everyone else is selling.
Since bond prices fall as interest rates rise, this possibility has many investors worried about their exposure to interest rate risk.
This makes sense given how bonds are structured, but I think many investors miss this point when they worry about the potential risks from rising interest rates.
In the 1990s, when investors were more worried about inflation and the potential for an aggressive Bank of Canada (BoC), the correlation between stocks and bonds tended to be positive.
Anecdotally I can confirm that investors are indeed worried about how bonds and bond funds will behave if rates continue to rise.
These advisors are not alone as many investors are worried about the future prospects for diversified stock and bond portfolios from today's levels.
After 30 years of declining interest rates, bond investors are beginning to worry that rates will go higher — especially after the events of May 2013.
That could mean investors are moving money out of stocks and into bonds in anticipation of disappointing earnings; or that foreigners who are worried about their own economies are looking for a safer haven in the U.S.; or that expectations of future inflation have declined, allowing long - term interest rates to come down a little.
«If an investor is worried that the market might be heading for a decline, they may want to trim some of their winners in the stock market and invest in short - term Treasury bonds or other high - quality fixed - income investments.»
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 I think it's a mistake for risk averse or diversified investors to completely give up on high quality bonds because they're worried about poor returns from low yields.
Many investors haven't had to worry about this question for years, as the Federal Reserve has continued its zero - rate policy, and the bull market in bonds has gone on for decades.
Whenever interest rates rise, many investors especially retirees with large bond holdings, are worried.
This is because investors are worried about rising interest rates, something that makes investment in utilities less attractive compared to bonds and other high yield stocks.
-- Junk - bond investors are passing up traditional protections in their race to buy new debt, and some participants worry the diminished safeguards are a sign of an overheated market.
Meanwhile, Bear Sterns, the second - biggest underwriter of mortgage bonds, lost more than $ 1.3 billion in market value yesterday as investors worried about the firm's liquidity.
Secondly, they are lower volatility, which means that investors can cash in their holdings more regularly without having to worry about the price actions in the bond market.
During times of volatility and bond market uncertainty, it's worth noting that 401 (k) investors shouldn't worry too much about what level of income their bond funds provide.
Conversely, the demand for those government bonds declines and interest rates go back up to where they were before investors became worried.
What income investors have to worry about next year is rising bond prices.
Fundamental bond investors (like me) have been worried for a while, but usually it takes a few years of lending at low spreads before something breaks.
I'm concerned that Couch Potato investors, worried their bond holdings are «certain» to fall in the near future will think this product can offer some safety.
And when one country has a financial crisis, investors worry that its neighbors will follow, and their bonds can lose value, too.
Not only are savings accounts and GICs yielding peanuts, but bond investors are worried that a spike in rates will send the value of their bond funds and ETFs plummeting.
In the 1990s, when investors were more worried about inflation and the potential for an aggressive Bank of Canada (BoC), the correlation between stocks and bonds tended to be positive.
That way, there's typically no commission involved, you pay the same offering price as everybody else, including institutional investors, and you don't have to worry that the dealer has marked up a bond's price excessively.
As long as bonds are held until maturity, the investor does not have to worry about the day to day price changes in the bond.
If I'm an investor in government bonds, and I'm worried that a government is borrowing too much money, I may only invest in a bond if they offer me a higher interest rate.
This spread has a ways to tighten before equities» relative valuation starts to look less attractive (it's when the stock / bond PE ratio is closer to 1 that investors should start to worry).
It's one of the biggest worries I hear from investors who hold bonds: what's going to happen to my portfolio when the Federal Reserve raises interest rates?
As stock investing generally requires a very detailed market study and is a very volatile investment in terms of return of investment, investors, especially the new investors out there are now turning to investing in bonds, as bond investments are safer than most of the other forms of investments and you need not constantly worry about prices going high or low.
Unlike the 1970s and early 1980s, investors don't have to constantly worry about inflation eating into their wealth or pushing bonds yields up and bond prices down.
Rising interest rates can hurt investors who own bonds or bond mutual funds, and many fixed income investors are worried that rates are so low right now -LSB-...]
Who else but Donald could wipe out more than 1 Trillion dollars in the bond market [1] as investors worry about his campaign promises to cut taxes and take on massive amounts Read More
The bond investor does not worry about daily marks.
Traditionally, bonds aren't the most attractive investment opportunity available, but Berkeley hopes the rising popularity of cryptocurrency will attract community - oriented investors worried about the city's socioeconomic issues.
Fueling the drop: a fall in U.S. bond yields as investors worry about the economy and...
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