Some types
of bonds offer fixed rate returns, whereas longer - term bonds are purchased at less than face - value, meaning that over the years, the value can rise considerably.
High -
yield bonds offer higher rates of interest, given the higher risk of default, than bonds issued by investment - grade corporations.
Corporate Bond — A long term
bond offered by a corporation in an effort to raise outside funds.
In a low yield and low expected return environment municipal
bonds offer higher interest rate cash flow that is tax - exempt.
Because of these features,
convertible bonds offer some of the potential upside of holding equities, combined with some of the downside protection of owning bonds.
The various types of
corporate bonds offer different risk levels, as well as varying yields and payment schedules.
Although longer -
term bonds offer higher yields, they don't necessarily offer enough of a return premium to justify the higher risk when compared to short - term bonds.
According to the following article:
Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher coupon rates.
Mortgage bonds offer the investor a great deal of protection in that the principal is secured by a valuable asset that could theoretically be sold off to cover the debt.
Buying individual bonds generally is riskier than buying shares of a bond mutual fund or ETF because buying one or a few individual
bonds offers little or no diversification.
A portfolio comprised primarily of individual
bonds offers more transparency of security holdings than shares of bond mutual funds which are only required to publish actual bond holdings at quarter - end.
Investing in high - yield
bonds offers different rewards and risks than investing in investment - grade securities.
While bonds offer lots of protection and cash flow, the rate of return isn't going to get you to your financial goals.
To compensate investors for the greater risk of default,
junk bonds offer higher yields.
It shows a knack for picking
sovereign bonds offering decent yields from developing countries with strengthening economies.
You can take advantage of this protection that
bonds offer when the stock market is too volatile for your liking.
We believe our solid reputation and significant asset base are advantages when negotiating terms for municipal bond transactions and finding opportunities to participate in
new bond offerings.
Because
bonds offer fixed interest payments at regular intervals, they may be appropriate if you want regular income from your investments.
Bonds: Government bonds, corporate bonds and municipal
bonds offer greater returns than cash but are more risky.
We originally planned to use our military pension payments to purchase more properties, but have instead diversified into low cost index funds and a few
selective bond offerings as a hedge.
Most of the municipal
bonds offer tax benefits to its holders like government bonds do.
Higher -
quality bonds offer another advantage as well: These investments typically come with lower transaction costs, which can help manage the expenses associated with this strategy.
Covered bonds offer a cheap way to raise capital, and banks are thought to have used much of the proceeds for new lending.
To help finance the acquisition, the purchasing entity announced a
sizable bond offering with initial «price talk» suggesting an interest rate around 5 %.
Short - maturity
bonds offer enough income to offset inflation for the first time in years.
Because bonds offer a fixed - rate of interest, holders can more easily compare potential gains (or losses) due to interest rate environment fluctuations.
As the Indonesian and
Indian bonds offer higher yields than their Asian peers which averaged at 4 %, they continue to grow in popularity among global investors.
This, though, was a function of the trend in interest rates; at the start of those periods, the funds were buying bonds with higher yields than
bonds offer today.
In general,
bonds offer smaller, more dependable returns for investors with shorter time frames.
Term preferred stocks and
baby bonds offer some of the best fixed - rate bonds to buy on today's market.
These investments in stock and
bonds offer growth potential not available with other plans.
Even with companies that have
done bond offerings, they have often used the proceeds to bolster the balance sheet, rather than expand capacity.
But they clearly meet our second condition by reducing the risk of steep losses: high - quality government
bonds offer significant protection during a market downturn.
For example, a $ 10,000 investment in a
provincial bond offering 3 % interest will yield $ 300 in interest income each year.
Phrases with «bond offering»