Sentences with phrase «bonds over bank»

There are several reasons why companies and government prefer bonds over bank loan or other means of money lending.

The first and foremost reason why companies and government prefer issuing bonds over bank loans is that, even though an annual interest is paid to the bond investor, it is almost at all times lower than the interest rates charged by banks on loans, thus saving the government or the company some money.

Not exact matches

Not only isn't there anywhere near enough bank capital in the US to supplant securitization, it is difficult to conceive that the universe of «rates» buyers will become mortgage credit buyers or move over to covered bonds (which default to the issuing bank's credit ratings), at least not at the same price levels and in the same size.

«Over the last 15 years, the difference between the five year government bond yield and the overnight Bank of Canada rate has been a reliable indicator of the trend growth in the Canadian economy.

In addition, both variable and fixed - rate mortgage rates have risen over the past year as a result of moves by the Bank of Canada and fluctuations in the bond markets.

Over the past several months, debt traders have been growing increasingly wary of this type of monetary tightening by global central banks, which have been the biggest buyers of bonds for years.

The list of individuals and organizations losing sleep over household debt — the government, bond - rating agencies, senior bank executives, economists — is long and growing.

The bank's MOVE Index of volatility in the world's largest bond market was at 82.7 on May 29, up from 75.3 at the end of April and compared with an average of 77.6 over the past five years.

Careful portfolio management, he said, would allow the central bank to absorb the losses over time by trying to hold bonds to maturity rather than selling at a loss.

The financial sector wins at the point where you don't see that the prices that the banks are inflating are asset prices — real estate prices, bond and stock prices — and that the role of commercial banks is to increase the power of wealth over the rest of society, over labour, over industry, to create a new ruling - class of bankers that are even more heavy than the landlords that were criticised in the last part of the 19th century.

By contrast, in Australia there has been no noticeable widening of risk spreads in the corporate bond market over the past year, and credit has been easily available from intermediaries, with no reports of significant changes in banks» lending attitudes.

But, over time, the longer central banks create liquidity to suppress short - run volatility, the more they will feed price bubbles in equity, bond, and other asset markets.»

... The zero - interest - rate and bond - buying central bank policies prevailing in the U.S., Europe, and Japan have been part of a coordinated effort that has plastered over potential financial instability in the largest countries and in private banks.

The World Bank alone has issued over $ 8.5 billion in green bonds in 18 currencies since 2008.

Deaton and his tennis partner, future Bank of England Governor Mervyn King, bonded over their mutual, if premature, disappointment at not landing professorships.

But if you switch entirely to bonds or bank accounts, your retirement nest egg won't grow, over the long term.

Among the Boston - based bank's advantages over its peers is its «enhanced custody» service: an innovation that allows end users to borrow stocks or bonds directly within a segregated custody account.

Earlier optimism over the European Central Bank's bond buying program has waned and concerns about Greece's debt has become a top concern.

«Finally, in circumstances where a major central bank is continuing to expand its balance sheet or maintaining a large balance sheet over a sustained period, this policy would likely exert downward pressure on term premiums around the globe, especially in those foreign economies whose bonds were perceived as close substitutes.

I think we all know that Central Banks have been buying just immense sums for like over 8 years now of sovereign bonds, corporate bonds, and more recently corporate equities either directly in specific companies like the Swiss Central Banks been buying Apple and Amazon I know.

Together, growth in money funds and bank deposits combined over this period account for all of the proceeds from mutual bond fund sales.

The bond purchases were started March 2015 to help the eurozone bounce back from troubles over government and bank debt in several member countries including Greece, Ireland, Portugal, Cyprus, Spain and Italy.

Over the weekend, Deutsche Bank warned that it would set aside a bigger chunk of money to absorb loan losses and said revenue from trading bonds and currencies fell.

Murphy went on to say that the two «bonded over the idea of a public bank.»

The Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. have over the past 2 1/2 years received taxpayer - financed contracts to help manage the sale of more than $ 3 billion worth of bonds for New York state, according to a review of state records by International Business Times.

And «Zen Ball Master» is yet more proof that Powell would make an excellent Bond composer (something he's shown very often over the years, ever since things like «Agent Cody Banks»).

Lawmakers have kicked the can down the road for years by failing to make required payments that school districts both need and deserve, so now taxpayers will be on the hook for at least $ 1.5 billion (yes that is billion) in bank fees and interest on the bonds over the next 20 years.

Although recently rising prices for stocks, high - yield bonds, commodities and other riskier assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.

While central bank policy and financial engineering have supported a nearly uninterrupted run - up in stock and bond markets over the last decade, it has also led to significant distortions in the valuation of stock and bond markets.

Central banks have little control over the yields on 5 - and 10 - year bonds, Schlenker explains, and those rates march to different drummers.

Cash in a bank account earns nothing, stocks can be too volatile over short periods of time and individual bonds can require large minimum investments.

What matters is what an owner of the entire company will put into his bank account (or choose to reinvest) over a period of time compared to what bonds will pay.

But remember, the bank FDs score over tax - free bonds in terms of liquidity as these bonds have longer maturity tenure.

Together, growth in money funds and bank deposits combined over this period account for all of the proceeds from mutual bond fund sales.

The underperformance was driven by a substantial underweight to Japanese debt just when the country was experiencing an extraordinary bond rally engineered by the Bank of Japan's quantitative easing program.2 The average weight to Japan in the fundamentally weighted index was roughly 9 % versus 30 % in the cap - weighted index over the 12 - month period.

According to Mr. Pan *, Deputy Governor from People's Bank of China, a total of 479 financial institutions invested in the China bond market with over RMB 800 billion under several schemes.

okay here's my two cents worth folks im up for renewal and have just nagotiated a rate 5 yr variable1.75 persent or if i want a five yr fixed at 4.49 still quite a gap between fixed and variable here i believe i have a little lee way here apparently i was only interesed in variable and five yr fixed but i made it absulutly apparent to them that when lock in from a variable i get the whosale discounted rate at that time and written into the contract i kinda believe this the way the market is heading as we head out of ressesion and the bank of canada is going to make there move i believe coming up in june and just to make this firm i do not believe the boc will raise rates in fast mode far from it will be slow process i don't care what the ecconmists are thinking we have to remember manufactering sector is reallt taking a hit on the high dollar and don't forget our niegbours to the south how dependent our canada is with them i believe it will be a slow process a lot of people heve put themselves in a debt load over these enormously low interest rates but i may be wrong i think a variable is the way to go if you want to work on that princibal at least should i say the say the short to medium term and betting that the bond markets stay put for the short to medium term - i have given enough interest to the banks maybe i can pay a little less at least fot the short to mediun term here i have not completly decided yet put i think im going variable although i wish my mtge was up a year ago that would have been just great congradulations to all that did.

What banks do have some control over is the spread on Prime (for VRMs) and 5 - year bond rates (for FRM).

Banks don't have any control over either the BoC rate or the 5 - year bond rate.

There are Mutual Funds (debt, equity, hybrid, over 50 schemes), Direct Stocks (30 of them), Unit Linked Insurance Plans (who doesn't have them), Endowment and Money Back policies (another 5 in all), Post Office Deposits, Bank Fixed Deposits, National Savings Schemes, Public Provident Fund, Corporate Deposits, Infrastructure Bonds, Land and Gold (physical as well as through ETFs).

Putting aside the equity outlook, the firm suggests investors favour shorter - term bonds over longer - dated securities given central bank tightening.

Here's a way to think about it: if the company borrowed money over the intermediate - term from a bank, or floated a bond, what kind of rate would they pay?

Since stocks and bonds have some volatility and can fluctuate over time, it is best to keep your funds in stable vehicles such as such as money market securities, CDs, bank accounts and shorter - term bonds.

My only good Bank investment was a serendipitous $ 500 placed in a Canada Savings Bond in 1994 with a yield of $ 2000 over 12 years.

To get that estimate I have to assume that central banks account for most of the $ 260b or so of private purchases of Treasury bonds over the past year bringing their, and that central banks hold few bonds over ten years and few TIPs — so total central bank holdings of notes are in $ 1650 - $ 1700b range.

And over the last 9 months, official demand for US long - term bonds also disappeared — as reserve growth slowed (until recently) and central banks moved in mass toward short - term treasury bills.

To redeem a bond, you must sign the back of the bond to authorize redemption and turn over the bonds to the bank.

«No one gets rich by saving in the bank,» said Byrke Sestok, a certified financial planner and president of Rightirement Wealth Partners in White Plains, N.Y. «If you have 30 years before retirement and 30 years during retirement, then you have the time to participate heavily or totally in the stock market, and ignore the big drops and focus on the fact that stocks have historically proved to be a better - performing asset class over bonds and cash.»

Given that the covered bonds enjoyed the highest rating of AAA, the funding cost for Australian banks for unsecured borrowings would be around 2.00 - 2.50 % over inter-bank rates, a sharp increase over the last 6 months.

To be sure, asset classes such as bank loans, high - yield bonds, and emerging market debt require the investor to bear credit risk, but the yield spread over the comparable - maturity government bond provides compensation for this risk.