Sentences with phrase «bonds offer investors»

To offset that risk, the bonds offer investors a much higher yield.
Government bonds offer investors a low - risk option for their portfolios.
Bonds offer investors dependable income, relative safety and portfolio diversification.
As with most fixed - income securities, zero coupon bonds offer investors a high degree of safety when held to maturity and the opportunity to earn compound interest over the life of the bond.
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.

Not exact matches

That climb got its start with financing through the offering from individual and institutional investors and bond investors, which in large deals like Trump's were typically pension funds and insurance companies.
The interest rate on 10 - year bonds was 1.79 % at the end of 2014 — about half as much as the federal government had to offer to get investors to buy its debt a decade ago.
Bond yields move inversely to prices; as a bond's yield declines, its price rises, offering investors the opportunity for capital returns in addition to the coupon paymeBond yields move inversely to prices; as a bond's yield declines, its price rises, offering investors the opportunity for capital returns in addition to the coupon paymebond's yield declines, its price rises, offering investors the opportunity for capital returns in addition to the coupon payments.
NEW YORK, Jan 18 - U.S. fund investors pulled $ 3.1 billion from high - yield «junk» bonds during the latest week, Lipper data showed on Thursday, offering new warning signs about risk appetite despite global markets» continuing triumph.
In the past year, Canadian securities regulators have raised the bar for exempt - market dealers, requiring them to be registered and bonded, issue an offering memorandum with every deal and provide audited financial statements to investors annually, says Sand, who supports this new layer of assurance.
In an era when the pension liabilities of local governments remain a concern, investors may want to consider the debt offered by established public enterprises — airports and utilities, for example — as an attractive alternative to lease revenue and pension obligation bonds.
Certainly, it offers an attractive level for longer - term investors such as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to buy bonds rather than equities.
Tax risks While municipal bonds can offer attractive effective yields and can be a way to generate tax - free income, they may not be right for investors in every tax bracket or for every type of account.
Fidelity offers investors the opportunity to participate in both the new issue and secondary bond markets.
One assumes that «AUM» means «assets under management» and is a shorthand for the asset managers, mutual funds, etc. who offer daily liquidity to bond investors.
As always, I urge investors to think hard about what role they want bonds to play in their portfolio — be it to mitigate stock volatility, diversify a portfolio or offer steady income potential — and make sure that their investment matches that goal.
Exchange - traded funds holding bonds offer cheap, efficient access to bond markets that, for individual investors, can be illiquid and expensive to trade.
The past decade has been a relatively good time for companies to hold debt as funding costs were low and bond investors were willing to snap up virtually any new offering.
But for most investors, bonds offer a solid bulwark during times of tentative economic growth and volatile equity markets.
Investors can find Treasury bills, notes, and bonds posted with active bids and offers.
Regarding Sulyma's holdings in the TDF, for example, the 2012 Summary Plan Description advised Sulyma that «[e] ach fund offers a broadly diversified mix of domestic and international stocks and bonds, and includes investments not typically available to individual investors, such as hedge funds and commodities.»
These investors may have to accept lower long - term returns, as many bonds — especially high - quality issues — generally don't offer returns as high as stocks over the long term.
As yields across the world continue to be pushed lower by highly accommodative monetary policies, international investors are fleeing low (or negative) rates offered by many DM government bonds.
«Starbucks epitomizes how any corporation in any industry can now take a look at its business and identify how it operates in a socially responsible manner, and then offer investors the opportunity to support that,» says Navindu Katugampola, head of green and sustainability bonds at Morgan Stanley.
A 2014 Standard & Poor's report found that «corporate issuers see green bonds as an alternative financing avenue, offering access to a diversified investor base, plus a means of implementing and maintaining efficiency measures considered environmentally sustainable.»
Lower - rated bonds generally offer higher yields to compensate investors for the additional risk.
Fidelity commissioned Corporate Insight to study bond pricing, available online, for self - directed retail investors from five brokers that offer corporate and municipal bonds.
State oil company Petroleos de Venezuela, commonly known as PDVSA, on Sept. 26 sweetened terms of a debt swap, offering to exchange more bonds maturing in 2020 for $ 5.3 billion worth that mature in 2017 after investors balked at an earlier $ 7.1 billion one - for - one proposal.
Will dividend investors continue to purchase suddenly volatile, high - yielding strategies when bonds offer higher rates and less risk?
Even so, floating - rate loans offer investors certain protections that conventional bonds don't.
Highly rated companies that are financially strong and have massive amounts of cash on their balance sheets — think Microsoft, Exxon, etc. — can typically offer bonds with lower yields since investors are confident that the companies won't default (i.e., miss interest or principal payments).
Furthermore, with US equity markets reaching new highs and the interest - rate environment looking negative for bonds, we believe investors will seek out product offerings from alternative managers that can offer access to alpha2 across alternative asset classes.
Investors may buy bonds from this market or buy the initial offering of the bond from the issuing company in the primary market.
Bonds pay investors interest in the form of coupon payments and offer full principal repayment at maturity.
Fixed income investments such as bonds and commingled bond funds offer investors the opportunity to purchase an asset that may increase in value while also paying out fixed interest payments or capital distributions.
While offering insurance for crypto assets, InChain provides a convenient insurance - based bond platform that will allow investors to be involved in investment strategy decisions such as suggesting a strategy or voting.
The key takeaway here for investors is that FIBR offers a new alternative for core bond investing.
As he reported the decision to keep bond rates at 0.75 percent, Draghi refrained from offering investors reassurance about the Spanish bailout.
This is designed to offer investors the best of both worlds: The diversification benefit of a traditional bond mutual fund and the declining interest rate risk sensitivity of an individual bond.
This has prompted many foreign investors to seek out other investments, including American municipal bonds, which still offer attractive yields.
Invests primarily in bonds or other debt securities, and offer investors the potential for income generation and capital preservation.
With yields down, investors are exploring other parts of the bond market that offer the prospect of higher income.
Generate income The interest payments that bonds offer can help investors build an income stream that can be reinvested or used to manage cash - flow needs — either supplementing existing income or creating a source for income in retirement.
The dramatic growth of the green bond market demonstrates that investors are ready to invest when they are offered attractive options that fit their financial requirements for risk - adjusted returns.
The Edward Jones Investment Policy Committee offers its viewpoints on the U.S. economy, equities, the bond market, international markets and asset classes, as well as a special topic of interest to investors each quarter.
Money market funds are essentially ultra-short-term bond funds that offer investors liquidity — as in quick access to their cash — and a small yield that's typically more attractive than merely parking cash in a bank savings account.
As Tesla seeks to help fund its Model 3 ramp up through a $ 1.5 billion bond offering, some investors are skeptical of...
As of last week, tax - exempt government bonds hit a four year high, with many investors believing that the recent tax reform and an expected rising interest environment will push bond pricing even higher, offering a very attractive economic option for yield starved investors — many of which in recent years have had to increase risk capital allocations to generate reasonable outcomes.
Municipal bonds can be illiquid and expensive to purchase, even for bonds, meaning ETFs can offer substantial benefits to investors.
With a single ticker, an investor can tap into thousands of bonds in a specific sector without having to hunt for inventory or navigate multiple offers from multiple brokers.
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