Sentences with phrase «bond markets when»

Can you imagine what happens to the bond markets when they realize the Fed is selling?

Rather than fund their growth via retained earnings as most corporations do, they paid out virtually all of their cash flow from operations as distributions and then routinely went to the stock and bond markets when they needed growth capital.

Specifically, there are concerns about what might happen should the tide turn in the bond markets when 30 years of falling interest rates reverses at a time when the Federal Reserve is preparing to tighten monetary policy by forcing rates higher.

But earning it back in the bond market when you expect 4 percent to 8 percent a year... «That's tough!»

plays a big role in the bond market when it decides to raise or lower rates,» says Kim.

It's injected into the bond market when the Federal Reserve purchases mortgage - backed securities and long - term Treasury securities from other financial institutions.

Not exact matches

His legal background proved invaluable in 1991, when the state of California and its insurance commissioner John Garamendi seized Raleigh's then - financial partner Executive Life Insurance Company after the value of the insurer's multibillion - dollar portfolio collapsed — a fate tied to its massive investments in the junk bond market of the go - go 1980s.

Although last year was favorable for developing countries, investors remember the painful «taper tantrum» that ensued several years ago, when the Fed signaled it would begin pulling back on its massive bond purchases that kept rates low while injecting liquidity in markets.

When bond yields rise, the market price to purchase or sell those bonds falls.

When we talk about bond market liquidity it's important to understand that there are lots of different «pools» out there such as high yield bonds, munis, government bonds, etc..

When rates go up, some of that money will tend to flow back into bonds and away from the stock market, so investors need to pay close attention to this, said McClanahan.

Since the bond market's «flash crash» back in October — when US 10 - year Treasury yields fell 34 basis points, or 0.34 % in one morning — concerns regarding liquidity and how resilient the bond market might be to shocks have lingered around the market.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

LONDON, May 3 - At a time when the impending withdrawal of European Central Bank stimulus was expected to hurt southern European bond markets, so - called «peripheral» euro zone debt continues to outperform its higher - rated peers.

When the market falls and volatility rises, investors should hide in bonds and gold, according to CNBC analysis.

«According to the higher interest rates and bond yields projected by consensus, the market has started to wonder when the BOE would start raising rates again.

Further, we do not expect the bond market to sell off and interest rates to go shooting up when the Fed raises the interest rate from zero by an eighth or a quarter percent.

History shows when the benchmark rate for everything in the economy from corporate bond yields to mortgage rates moves by this much, this fast, the stock market struggles in the following months.

Bond vigilantes last made their mark during the Clinton administration, when a bond market sell - off forced President Bill Clinton to tone down his spending ageBond vigilantes last made their mark during the Clinton administration, when a bond market sell - off forced President Bill Clinton to tone down his spending agebond market sell - off forced President Bill Clinton to tone down his spending agenda.

It used the FSR to report that traders and investors in Canada say that it is taking longer to complete trades in fixed - income markets and that larger trades that used to go through easily now must be broken up into smaller bites, especially when moving corporate bonds.

As marketing solutions executive Mark Shaeffer put it: «When people like something, they are only lightly and temporarily bonding with it.

But more than anyone, Mr. Schäuble has come to embody the consensus that has helped shape European economic policy for years: that the path to sustained economic recovery for financially troubled countries is to slash spending, raise taxes when necessary and win back the trust of bond markets and other investors by displaying commitment to fiscal prudence — even if that process imposes deep economic pain as it plays out.

Bond prices falling along with a falling dollar reflect an exit by foreign investors from US bonds that were attractive when risk off from non US markets was the theme and the dollar was strong.

It appears that Jeff Gundlach was right when he said, «Bill Gross Is Early» on his bond bear market call...

Market discount arises when a bond is purchased on the secondary market for a price that is less than its stated redemption Market discount arises when a bond is purchased on the secondary market for a price that is less than its stated redemption market for a price that is less than its stated redemption price.

While it's still not known when interest rates will go up and by how much, what we do know is that the bond market is at greater risk to rising interest rates than at any time in recent history.

Bond traders also keep an eye on the VIX, a measure of stock - market volatility, since it has historically been highly correlated to the performance of stocks: rising when stocks sell off and falling when stocks rally.

When bonds yield 1.75 % for investment - grade bonds, then it's difficult to turn that into a 5 % -10 % return going forward... If he wants to argue against that, and talk about Dow 5000 and bear and bull markets, then he's welcome to, but he's pushing at windmills in my opinion, and he belongs back in his ivory tower.

The 35 year bull market in bonds most likely ended on July 8, 2016 when the 10 year maturity U.S. Treasury Note yield hit an all - time low of 1.36 %.

Holding a bond ladder that you can liquidate when the market is down provides the alternative to selling stocks at the worst possible times, and allows you to wait until the stock market recovers.

When I was doing this, I was putting about 30 % of my paycheck in twice a month and I was allocating 100 % of the contributions to money market and Pimco Bond Fund so I wouldn't end up losing money when I cashed When I was doing this, I was putting about 30 % of my paycheck in twice a month and I was allocating 100 % of the contributions to money market and Pimco Bond Fund so I wouldn't end up losing money when I cashed when I cashed out.

As Benjamin Graham explained, «When changes in the market level have raised the common - stock component to, say, 55 % the balance would be restored by a sale of one - eleventh of the stock portfolio and the transfer of the proceeds to bonds.

When you put your money in an index fund, you're investing in a broad range of stock or bonds (again, usually an entire market), so you don't have to deal with — or do the research associated with — buying and selling individual stocks.

Historically, we have seen short duration bonds have a lower correlation to stocks, which can be a beneficial ballast when equity markets are down.

When he market has recovered and stocks are again more expensive, then rebuild the bond ladder in preparation for the next downturn in the stock market.

For example, if you decide to remove bonds from your portfolio when their returns are down, they'll no longer be there to buffer you from losses in your stock portfolio when the markets inevitably turn again.

Additionally, bonds typically generate regular income for investors, which can potentially help stabilize portfolios when equity markets decline.

So when investors hear that interest rates may rise, some assume it's bad for bond investments and want to sell out of the market in a kneejerk reaction.

The iShares JP Morgan USD Emerging Markets Bond ETF (EMB) is the undisputed segment leader when it comes to liquidity.

A well - functioning local - currency bond market allows a government much more economic policy flexibility than can be experienced when tied to foreign currency borrowing.

John Bogle at Vanguard wasn't engaging in market timing when he looked at the returns on stocks versus the returns on bonds during the dot - com bubble and decided that investors were faced with a once - in - a-lifetime mispricing event.

In the 1980s and 1990s, when stocks and bonds alike racked up double - digit average returns, the markets did most of the work.

Gross pointed to the long - term success of the Total Return Fund, while acknowledging the tough year the fund saw in 2011, when it experienced significant net outflows after he bet against the bond market.

When you invest in a mutual fund, you join other investors with similar financial goals whose money the portfolio manager has pooled to invest in a portfolio of stocks, bonds, money market instruments, and other securities.

The 1950s witnessed a strong bull market in stocks, but when the S&P 500 fell double digits in 1957 bonds held up really well.

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.

When the stock market dividend yield yields more than a 10 - year US treasury bond yield, it's generally a good sign to invest in equities.

These are the reasons why some countries have engineered a domestic government bond market, when the need for one has not existed.

I still think there will be a flight to safety in sovereign bonds when stocks have a bear market but other areas such as high yield and corporate debt could run into some problems.

Or it could be that bond market volatility picks when interest rates are lower, especially in long maturity bonds.