Sentences with phrase «bonds at a lower interest»

If the bond included a «call provision,» the issuer can redeem it early, too — in order to issue new bonds at a lower interest rate, for example — but usually pays you a little more than the face value to do so.

Naperville Park District commissioners are considering the district's financial future, including the possibility that, with interest rates falling, the district might be able to refinance general obligation bonds at a lower interest rate.

So it calls the 6 % bonds and reissues new bonds at a lower interest rate.

That way the issuer can save money by paying off the bond and issuing another bond at a lower interest rate.

The TCJA further tightened the market by eliminating «advanced refunding» bonds, issued to replace older bonds at lower interest rates, which have accounted for about 15 % of new issues.5

Not exact matches

The new bonds would capitalize on the province's ability to raise funds at low interest rates, said Finance Minister Charles Sousa.

Ultimately these green bonds will only truly be successful if they allow the province to finance transit projects at a lower interest rate than would otherwise be the case.

Plus, in non-registered accounts, those dividends are taxed at a lower rate than bond interest.

It's similar to the U.S. government's quantitative easing, but rather than trying to buy government bonds to push interest rates lower — rates are already at zero — the goal is to push the yen down and combat chronic deflation.

Interest rates are at historic lows, and a sharp spike in rates could drop the value of solar bonds.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

And with interest rates at all - time lows and stocks at all - time highs, there are many who expect that not only will a 60/40 portfolio deliver below average returns, but that bonds might not provide the protection they once did.

He was considering selling the bonds to lock in the gains, but then he would still have to reinvest his proceeds at the now lower interest rates.

Today's biggest bubble in safe assets, however, is the one in Treasury bonds, which is a direct consequence of the Fed's policy of holding interest rates down at abnormally low levels.

BERLIN — Throughout the month, countries caught in the eye of the European financial storm, including Italy, Spain and France, have repeatedly defied expectations, selling big batches of bonds to the public at interest rates significantly lower than investors demanded at the height of the euro crisis late last year.

Future generations should help pay for them and that's why governments today should be issuing 10, 30, or even 50 year bonds at currently ridiculously low interest rates to finance needed infrastructure.

Bonds are also subject to reinvestment risk, which is the risk that principal and / or interest payments from a given investment may be reinvested at a lower interest rate.

Put simply, even taking account of current interest rate levels, and even assuming that stocks should be priced to deliver commensurately lower long - term returns, we currently estimate that the S&P 500 is about 2.8 times the level at which equities would provide an appropriate risk premium relative to bonds.

Bonds exhibit much higher volatility at lower levels of interest rates.

(2) Interest rates are absurdly low, if prices start to jump quickly no sane person would hold a treasury bill / note / bond at these yields.

The Fear Trade, of course, is driven by low to negative real interest rates — when inflation erodes away at government bond yields — deficit spending, a weaker U.S. dollar and geopolitical uncertainty.

a municipal bond that is secured by an escrow fund; the escrow fund comes from the issuer floating a second bond issue and using the proceeds from that second bond issue to purchase government obligations, typically U.S. Treasuries, proceeds from the second bond issue create an escrow fund to mature at the first call date of the first bond issue to pre-refund that issue; bond issuers will typically do this during times of lower interest rates to lower their interest costs

Thus, if we look at bonds from a historical perspective, interest rates are very low — which is great for those borrowing money — but not so great for those that wish to see higher rates of interest, and return, on their money.

Since rising interest rates means the bond's fixed rate is not competitive against newly issued bonds at higher market rates, then it stands to reason that longer - term bonds (those with longer to pay at the lower rate) are going to see their prices fall further than short - term bonds.

Their cost of capital is a function partly of low interest rates and part of the implicit share price is a function of the fact that investors have looked at equities for dividends rather than bonds for yield because the bond market is so expensive.

Yet long - term interest rates are still remarkably low, with ten - year government bond rates at around two percent in the United States, around 0.5 percent in Germany, and around 0.2 percent in Japan as of the beginning of 2016.

This insurance fee is paid by the broker and will likely lower your interest rate, but it is much better to get insured and earn smaller interest rate, than go for bigger interest rated bonds at your own risk.

As interest rates rise, bond prices generally fall; these risks are currently heightened because interest rates are at, or near, historical lows.

The federal government would borrow on behalf of this Crown Corporation by issuing 30 - year bonds at historical low interest rates (around 2 %).

I totally agree with you and with Buffett; nonetheless there's one question, that came to my mind regarding market valuations: Assuming bonds and interest rates go even lower as they are today, at which level (pe ratio or Shiller pe ratio — or whatever metric you'd like to take) would I call the market of today a bubble?

Since interest rates are at historical lows, we do not recommend investing in long duration bond funds at this time.

We don't discuss bonds often in this blog, mostly because interest rates are currently at artificial lows.

sorry this is a bit of the subject does anyone know what the situation with our overall debt is at the moment and what our repayments are i was under the impression that we are at about the # 245 million mark gross debt and about # 97 net debt are the stadium repayments lower now or something is the bonds interest dropped lower inprice we were paying something like # 20 - # 30 million in repayments but heard its down to about # 15 million per yr now i know we will have broken throught the # 300 million mark in revenue now i am guessing that contributes more to the transfer funds or if not what makes up the transfer funds in the club i.e deals or match day revenue plus cash in the bank which stands at a high level but must be just in case we might default on a payment we need heavy cash in hand to bail us out this side of the club really intrigues me as it is not a much talked about subject unless you are into that type of area of work or care about the general fianacial outcome of the club does anyone have more insight into our finances would be great to hear from anyone about this matter cheers gonerwineverything (because we are)

HOFFMAN ESTATES — To take advantage of current relatively low interest rates, $ 17.7 million in bonds should be sold all at once, a Hoffman Estates Park District panel recommended this week.

Such bonds function as an alternative to direct public financing of housing projects: Since interest income on PABs is tax exempt, investors are willing to buy them at very low interest rates, and this makes it relatively affordable for states, municipalities, and nonprofits to finance housing (and hospitals, infrastructure, and other public works) through the private capital market.

Now, with the aid of the Erie County Fiscal Stability Authority (a.k.a. «the control board»), we have been able to refinance much of our debt at lower interest rates making use of the control board's superior bond rating.

The savings was generated by lower interest rates and an improved credit rating, since the original bonds were sold at the height of the county's red / green crisis, when the county's bond rating was much weaker, said Comptroller Stefan Mychajliw.

According to John Musso of the Association of School Business Officials International, advance refund bonds «are a cost - effective way for districts to refinance high - interest debt at lower - interest rates, potentially saving hundreds of thousands of taxpayers» dollars in lower debt payments.

(Yet, at today's low interest rates for municipal bonds, this would be the perfect time to borrow the money to make that investment.)

Along with the senior bonds issued at loan closing, CTRMA issued $ 66 million of low interest BANs, which reached maturity in January 2008.

Having a good credit history makes it possible for service providers to gauge how much of a risk you are, a good rating means more financial options and opportunities — this makes it possible to apply for a bigger bond with home loan providers at low interest rates, plus you can also get various other loans from other institutions at affordable rates.

Primarily this would occur when there is a drop in interest rates — issuers often redeem the callable bond and issue another one at the new, lower interest rate.

You'll need to ask yourself if exchanging a lower current interest rate for the chance at higher interest rates in the future is a worthy trade - off for a short - term fixed rate bond or bond fund.

It might seem inefficient to pay off our mortgage early when our interest rate is not even at 3 % but bond yields are even lower!

In a time where interest rates are at all time lows, understanding the bond price and yield relationship is important.

David Lloyd at Newport Partners advises against holding government bonds because interest rates are so low.

But with interest rates at current low levels, stick with T - bills, GICs of government bonds that have terms of, say, two or three years or less.

This bond purchasing program is the reason that mortgage interest rates are at historic lows.

For example, if interest rates hit a bottom five years (at maturity) after purchasing the bond, then your $ 50,000 would be stuck with a low interest rate if you wanted to buy another bond.

Lower Taxes — The U.S. government taxes most stock dividends at a lower rate than more ordinary income from cash, certificates of deposit, or bond interest paymLower Taxes — The U.S. government taxes most stock dividends at a lower rate than more ordinary income from cash, certificates of deposit, or bond interest paymlower rate than more ordinary income from cash, certificates of deposit, or bond interest payments.