Sentences with phrase «bond returns tend»

Over longer time frames, bonds returns tend to be very close to their corresponding average interest rates.

Not exact matches

Most investors shy away from bonds because they yield (or return) less than equities and tend to be more complex in nature.

Relative return bond mutual funds and ETFs tend to have fairly constant durations.

Although cash tends to have a lower expected return than bonds, we have seen that cash can hold its own against bonds 30 percent of the time or more when bond returns are positive.

In this environment, which we call «highly bullish,» we tend to see negative returns from bonds and positive returns from equities and other cyclical assets.

The answer is that Fed policy is the primary factor driving the returns of short - term bonds, meaning that they tend to hold up much better than long - term debt when the Fed is expected to keep rates low as was the case in 2013.

These investors also tend to have a much longer investment horizon and lower return hurdles than shorter - term bond fund managers or leveraged investors.

Higher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portfolio.

Stocks tend to offer higher returns than bonds in the long run, but they tend to be more volatile: they can gain or lose a lot of value in a short time.

The return / risk characteristics tend to maximize portfolio returns, even if other bond categories look more attractive on a side by side compare, which several will.

For example, investors tend to put their money into predictable but lower return assets like government bonds instead of the potentially higher - return but uncertain stock market.

Fixed income is considered to be more conservative, because bonds tend to pay a steady stream of income, fluctuate less in value and typically return an investors» money at a predetermined date.

These investors also tend to have a much longer investment horizon and lower return hurdles than shorter - term bond fund managers or leveraged investors.

That's why we tend to invest more heavily in stocks than bonds, we want to achieve that higher return and we know over the long run, stocks should outperform bonds.

Thus, preferreds tend to be a reliable stream of income that yields more than bonds, but it can also be used as a diversifier since the correlation of returns between bonds and preferreds is low.

Though they tend to lower bond prices in the short term, interest - rate hikes have generally led to higher fixed - income returns down the road for investors who have stayed the course.

If you held the bond fund for a similar ten - year period (as the duration of a single bond), the funds annual total returns tend to approximate the starting yield.

That means adding currency risk to your bond holdings will tend to increase volatility without increasing expected returns.

However, because of this inherent safety, the average mortgage bond tends to yield a lower rate of return than traditional corporate bonds that are backed only by the corporation's promise and ability to pay.

However, consider that itâ $ ™ s a diversified fixed income â $ œbucketâ $ that includes non-US bonds which tend to have more volatility of return than US bonds.

Bonds tend to be much lower returns, but much more stable.

For instance, a 60/40 stock / bond portfolio is much riskier late in the business cycle than it is early in the business cycle because the primary driver of returns (the 60 % stock portion) will tend to become riskier as the business cycle unfolds.

Because of this divergent risk, stocks tend to have a higher return (risk premium); and since bonds are less risky, they have a lower return.

But you don't buy bonds for total returns; you buy them for income, and diversification; they tend to do well when risky assets break down.

Because balanced funds contain a big dollop of bonds, their returns tend to be much less volatile than those of stock funds.

While that's true between asset classes (stocks tend to return more than bonds which tend to return more than cash), it's not true within the stock class.

Bonds tend to return less but have been historically steadier than stocks.

Fixed indexed annuities can offset those shortcomings: In addition to earnings that grow on a tax - deferred basis, they guarantee a set interest rate and provide exposure to stock market returns, which tend to be higher than bond market returns, according to Ibbotson's white paper.

Improving High - Yield Bond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolBond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolbond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolios.

Bradson Oakley presents Bond Mutual Funds posted at Best Bond Funds, saying, «Higher bond fund expenses tend to mean lower net returns to individual investBond Mutual Funds posted at Best Bond Funds, saying, «Higher bond fund expenses tend to mean lower net returns to individual investBond Funds, saying, «Higher bond fund expenses tend to mean lower net returns to individual investbond fund expenses tend to mean lower net returns to individual investors.

Adding 10 percentage points of equities (and thus subtracting 10 points of bonds) tends to add about 0.55 % to the long - term return.

Long term mortgage rates tend to be based on the yield, the annual rate of return, of those bonds.

If anything, to the extent rebalancing forces you to cut back on your stock holdings and put more money into bonds, it reduces the return you're likely to earn over the long - term, as stocks tend to outperform bonds over long periods.

Waiting until December does incur the risk of negative returns, but — as Benz points out — stocks and bonds tend to have positive returns on an annual basis far more often than negative returns.

According to the same fact sheet, Canadian municipal bonds offer an attractive risk / return profile since they tend to command higher yields than provincial or federal bonds.

As returns from bond funds tend to be similar, expenses become an important factor while comparing bond funds.

We believe commodity - linked real assets look the most attractive after shrugging off the negative momentum of the last few years, but investors should keep in mind that these exposures tend to exhibit higher levels of volatility than TIPS or municipal real return bonds.

Not surprisingly, senior loans tend to have slightly smaller, but less volatile returns than high yield bonds (See Total Returns returns than high yield bonds (See Total Returns Returns table).

+ read full definition bonds tend to have higher returns and higher risk than shorter - term bonds.

Despite all the news articles, history shows that when the yield of the 10 - year government bond is below 5 %, stock returns tend to be positively correlated with increasing interest rates.

For example, bond ETFs tend to be more affected by the tax given that their dividends comprise a bigger proportion of their returns.

Junk bonds have tended to outperform the higher rated bonds after a recession, and have been the preferred instrument for 2009, yielding a 43 % return as at the end of November 2009, according to Morningstar.

Certain asset classes are riskier than others; for example, bonds tend to have lower risk and lower returns, whereas stocks exhibit high risk and returns.

Then they tend to return to previous levels (whereas the price decline in an individual bond is locked in, and doesn't go away until maturity).

In general, high - yield bonds tend to produce attractive total returns when the economy is growing and interest rates are stable or declining.

Core real estate, as represented by the National Council of Real Estate Investment Fiduciaries Property Index, tends to have similar volatility to corporate and government bonds with a higher return over the long term.

At older ages, the ratio tends to lean more towards the Bond Fund than Equity Fund for protected returns.

In unit - link insurance plans, these are market linked and in traditional plans, the returns tend to be 2 % to 4 % less than the long - term government bond rates.

When the economy is booming and the market is good, big returns can be had by investing in alternatives, and bond prices tend to fall so bond yields rise.