Sentences with phrase «bonds purchased at»

The bad news is that while discount bonds are taxed, bonds purchased at a premium do not work in a similar manner; they can not offset capital gains by providing capital losses.
Expectations are high the Bank of Japan may boost its government bond purchases at its April 3 - 4 policy review, the first under new Governor Haruhiko Kuroda, who has vowed to do whatever it takes to hit the BOJ's new 2 percent inflation target.
The irony is that the US has hit its debt ceiling and the US Federal Reserve will end its bond purchases at June - end: both factors that should be pushing yields higher.
As with a bond purchased at par and held to maturity, a GIC's total return is made up entirely of interest, with no capital gains or losses.

Not exact matches

The European Central Bank on December 3 dropped one of its main policy rates to negative 0.3 % from negative 0.2 % and said it would extend its bond - buying program, under which it creates euros to purchase debt, to at least March 2017.
The central bank said it will purchase Japanese government bonds so that the yield on the 10 - year note will remain at around zero percent.
«At that time, even a 1 % annual rate of inflation between 2012 and 2017 would have decreased the purchasing - power of the government bond» he sold.
At the moment, the ECB can not purchase Greek bonds because they do not have an investment grade rating.
But with the unemployment rate, at 6.2 percent, well below its recession - era peak of 10 percent, and inflation showing no signs of falling further, the Fed has begun to trim its monthly bond purchases, aiming to end them completely by October.
Last December, the bank announced it would extend its bond - buying program albeit at a reduced pace of purchases.
Type 3: The value - at - risk (VAR) shock in Japan in 2003 occurred when fears spread that the Bank of Japan, which was already doing QE before it was called QE, would taper its purchases of Japanese Government Bonds.
At his news conference, Bernanke said there's «no fixed schedule» date or «magic number» for when the Fed will slow or end its bond purchases.
John Canally, investment strategist at LPL Financial, suggested that financial markets had overreacted in anticipation of reduced bond purchases.
«We do nt foresee the ECB making any changes at all until September, when the QE program officially ends,» said Alfonso Esparza, senior currency strategist at Oanda Corporation in Toronto, Canada, referring to the bank's purchases of bonds.
All in all, we believe eurozone bond yields may move a little higher, but any increase is likely to be capped by the ECB's ongoing level of purchases, at least until policymakers start to signal their next steps on monetary policy later in the year.
As this intermediate bond fund rebalances, it can purchase bonds at interest rate levels that are now 1 % higher.
You can purchase bonds directly from the government — at TreasuryDirect.gov — or through a broker, dealer or bank.
If you purchase an individual bond with a five year maturity you will receive interest payments for the term of the bond along with total principal repayment at maturity.
Lastly, unlike bond mutual funds which can only be purchased or redeemed at end of day, individual bonds can be bought and sold throughout the day providing the investor with more immediate liquidity.
Newly issued Treasuries can be purchased at auctions held by the government, while previously issued bonds can be purchased on the secondary market.
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 purchase, to be mostly paid for in shares and convertible bonds, follows Ensco Plc's (ESV.N) acquisition of smaller drilling rival Atwood Oceanics Inc ATW.N in an all - stock deal valued at about $ 839 million in May.
But potential tax implications get trickier with bonds purchased in the secondary market at a premium or discount — in other words, investors that paid more or less than the face value of the bond.
Each week a limited number of new issue corporate bonds are available for purchase at par, in minimum denominations of $ 1,000, without additional trading concessions.
«Foreign purchases of provincial bonds were the largest in a year at $ 3.5 - billion, mainly new issues denominated in U.S. dollars.»
At the time of purchase for the fund's portfolio, the ratings on the bonds must be one of the four highest ratings by Moody's Investors Services (Aaa, Aa, A, Baa) or Standard & Poor's Corporation (AAA, AA, A, BBB).
Bluford Putnam, managing director and chief economist at CME Group, the world's biggest futures market operator, agreed that the Fed's near - zero interest rates and bond purchases helped stabilize financial markets and bolstered the economy — but only for a while.
The bonds were purchased at an earlier time, before the state's budgetary problems really began to worsen.
Each account will contain investment - grade taxable bonds rated BBB − or higher at time of purchase.2 The investment team will seek to maintain an overall portfolio credit rating average of A −.2 Please be aware that lower rated bonds do carry additional risk compared to higher rated bonds.
You may search for and purchase high yield bonds at Fidelity.com, where you can choose the credit rating levels appropriate for your portfolio and risk tolerance.
At some point in the next year, the Fed will taper off its bond purchases, As it does that and as the market anticipates that, we're likely to see some big swings in the stock market.
the initial sale of U.S. debt obligations and new issues, offered and purchased directly from the U.S. government at a face value set at auction; these securities are auctioned in a single - priced, Dutch auction; auctions are held with the following frequencies: Treasury bills with one - month (30 day), three - month (90 day), and six - month (180 day) maturities are auctioned weekly; treasury notes with two - and five - year maturities are auctioned monthly; Notes with three - year maturities are auctioned in February, May, August, and November; treasury bonds with 10 - year maturities are auctioned in February, May, August, and November.
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
The rate at which the Fed sells or purchases government bonds determines the federal funds rate, or the rate at which banks can borrow funds from one another overnight.
the difference between the stated redemption price at maturity (if greater than one year) and the issue price of a fixed income security attributable to the selected tax year; NOTE: Tax reporting of OID obligations is complex; if acquisition or bond premium is paid during the purchase, or if the obligation is a stripped bond or stripped coupon, the investor must compute the proper amount of OID; refer to IRS Publication 1212, List of Original Issue Discount Instruments, to calculate the correct OID
The committee members also voted unanimously to maintain the current asset - purchase program, which includes purchasing UK government bonds at # 435 billion and non-financial investment - grade corporate bonds at # 10 billion per month respectively.
The first problem concerns a proposed debt buyback scheme, in which the Greek government would purchase and retire bonds at a discount.
The ECB has said it intends to continue bond purchases until at least September, to keep interest rates at current levels until «well past» the end of the program.
The proceeds from the equity sale will be reinvested to purchase enough bonds to bring balance back at 40 percent.
«When I purchased long - term zero - coupon bonds in the early 1980's at market yields in excess of 13 %, I welcomed the prospect of outsized volatility because I felt it would eventually work in my favour.»
As it had announced at the end of 2016, the ECB cut the size of its monthly bond purchases from $ 80 billion to $ 60 billion in April, but President Draghi also moved to quell speculation about an increase in the ECB's deposit rate later this year, which some critics had called for, even before any curtailment of the ECB's quantitative easing program.
Wall Street would like to see another round of quantitative easing, where the central bank purchases bonds, but that may be too aggressive a step at this time.
Draghi offered no indication of any looming change in the bank's statement that it would continue purchasing 30 billion euros ($ 37 billion) per month in bonds at least through September, and longer if necessary.
The central bank said it would continue purchasing government bonds through at least September 2018, but in reduced monthly amounts.
-LRB-...) Mr. Draghi indicated on Monday that the ECB would be open to buying bonds with a maturity of two to three years, stressing that such purchases wouldn't break European Union treaties, according to several lawmakers present at the hearing.
With the UK economy gradually picking up pace and inflation rising on the back of a weaker currency, the UK's central bank may finally go ahead with a rate hike for the first time in a decade, although it is widely expected to leave the monthly government and corporate - bond purchases untouched at # 435 and # 10 billion respectively.
He said the Fed's decision to start reducing its $ 85 billion in monthly bond purchases «could be in October, it could be in December, but it also could be at the January meeting.»
The 10 - year is not trading at closer to 3 percent because of the «continue large purchase of Treasury bonds by the Fed.»
If the whole thing — the rises in stock prices, in corporate earnings, in the housing market, even in job growth — is driven solely by the flood of money, or whether five years of zero - interest rates and trillions of dollars in bond purchases have succeeded at getting a more resilient economic engine for the United States up and running.
Generally, the distribution yield of a fund reflects the average yield at which the underlying bonds were purchased.
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