Sentences with phrase «bond prices usually»

When interest rates (and bond yields) go up, bond prices usually go down and vice versa.

Bonds generally present less short - term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall), issuer default risk, issuer credit risk, liquidity risk and inflation risk.

Commodities investing entail significant risk as commodity prices can be extremely volatile due to wide range of factors Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.

In general, fixed Income ETFs carry risks similar to those of bonds, including interest rate risk (as interest rates rise bond prices usually fall, and vice versa), issuer or counterparty default risk, issuer credit risk, inflation risk and call risk.

Interest rates and bond prices move in opposite directions so that as interest rates rise, bond prices usually fall, and vice versa.

Duration2 In general, as interest rates rise, existing bond prices usually fall, and vice versa.

When interest rates fall, bond prices usually rise and when interest rates rise, bond prices usually fall.».

Bond prices usually include a markup (when you are buying) or a markdown (when you are selling), that reflects the cost the broker - dealer firm incurs for holding the bond in inventory plus a profit.

Often during an inflationary period business spending decreases, consumer spending decreases and stock and bond prices usually depress rapidly.

Duration2 In general, as interest rates rise, existing bond prices usually fall, and vice versa.

For example, when the equity markets are declining, bond prices usually are more stable.

If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than face value, since other investors are willing to pay a premium for a bond with a higher interest payment.

If interest rates rise, bond prices usually decline, and if interest rates decline, bond prices usually rise.

Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

(As interest rates rise, bond prices usually fall, and vice versa.

Not exact matches

Bond prices rise when interest rates fall, and vice versa; the effect is usually more pronounced for longer - term securities.

a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that usually includes interest; they have higher price volatility than coupon bonds as a result of interest rate changes

«The importance of the wealth - saving relation goes beyond the case usually designated by the Pigou effect, viz., beyond the effect of an increase in the real value of cash balances and government bonds due to falling prices.

Interest rate risk If interest rates rise, the price of existing bonds usually declines.

Sudden decreases in inflation usually cause the opposite reaction, where bond yields decline and prices increase.

As discussed in Article 6.2, rising inflation usually causes higher bond yields but lowers bond prices.

Investors who hate to see share prices fluctuate buy individual bonds, usually in bond ladders.

That lower risk to payment usually helps high - yield bond prices not fall as much as other bonds.

Having stocks, bonds and gold rise in tandem is likely a short term phenomenon since these asset prices usually move in different directions.

The prices listed for bonds are for recent trades, usually for the previous day, so keep in mind that prices fluctuate and market conditions may change quickly.

(For example, a bond paying 4 % typically fetches less when other, similarly situated bonds are paying 5 %; the market is usually smart and fast enough to price that 4 % bond to yield 5 %.)

It is usually not one - to - one; since most bonds are issued in $ 1000.00 denominations, and most stocks are priced well below that, typically the bond's indenture will specify the conversion rate.

(For example, a bond paying 4 % typically fetches less when other, similarly situated bonds are paying 5 %; the market is usually smart and fast enough to price that 4 % bond to yield 5 %.)

When an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments.

Usually that demand pushes up the prices of those bonds.

Generally issued by blue - chip companies, they are shares that act like bonds, promising a set payout over a set term and usually varying little in price.

This price is usually quoted as a percentage of the par value of the bond.

What you pay depends on a number of factors: Where you buy the bond — say an online broker or a full service investment firm; what type it is — U.S., Canadian, corporate or government; and how much of it you want — the price can go down the more you buy, so institutional investors usually get a better price.

The prices listed for bonds are for recent trades, usually for the previous day, so keep in mind that prices fluctuate and market conditions may change quickly.

A bond is considered a deep - discount bond if it is sold at a significantly lower price than par value, usually 20 % or more.

Bond prices fall when interest rates are rising, usually as the economy accelerates.

That's why the bond market usually goes down when any news comes out that could reasonably be interpreted as leading to higher consumer prices.

Historically an alternative practice of issuance was for the borrowing government authority to issue bonds over a period of time, usually at a fixed price, with volumes sold on a particular day dependent on market conditions.

Sudden decreases in inflation usually cause the opposite reaction, where bond yields decline and prices increase.

Bonds are sold at «par» or «face» value, which is the price at which the bond is issued, usually in denominations of $ 1,000 or $ 5,000.

Note also that when you buy a bond issue, even though the commission is built into the deal, commission costs are usually closer to the actual market price for that bond, at a point in time, than when bonds trade in the secondary market.

Forced conversion usually occurs when the price of the stock is higher than the amount it would be if the bond were redeemed, or this may occur at the bond's call date.

A one - way option of the issuer (not the investor) that allows the issuer to retire bonds by paying investors a stated price, usually a premium above the par value.

Effectively the profit here is made on the spread between the price of the bond, accounting for the conversion price, and the price of the stock and that fixed income is less volatile (except usually in the junk market) than stock.

By contrast, in the wake of a market crash investors become overly cautious and often dump stocks and huddle in bonds and cash, even though stocks are usually more attractively priced after big downturns.

Thus, a callable bond's true yield, called the yield to call, at any given price is usually lower than its yield to maturity.

If a company's bond ratings are downgraded, the price of the bonds usually falls, resulting in increased yields.

Price differentials in municipal bonds are usually expressed in multiples of 5/100 of 1 %, or «05.»

A market correction is usually a sudden temporary decline in stock or bond prices after a period of market strength.