Personally, I would be comfortable with most government, industrial and utility
bonds rated single - A or better.
Not exact matches
So the impact of falling
rates may be smaller with a ladder than with a bullet strategy that targets a
single maturity date or than with an investment in a small number of
bonds.
But even if the ECB does bend to the will of the
bond markets this year, and begins to buy sovereign debt directly, the
single currency is left with all of the same weaknesses that existed prior to the crisis: the inability to tailor interest
rate policy for each individual economy, the lack of foreign currency adjustment needed to offset differences in competitiveness, and growth - limiting trade dynamics throughout the area.
Between 1970 and 2014, not a
single Aaa -
rated muni defaulted, while Aa and A-
rated bonds — the kinds NEARX heavily invests in — were highly unlikely to default.
For example: If I'm a U.S. - based investor and I buy a BMW
bond and do not hedge the currency, every
single coupon I receive, including the repayment at the
bond's maturity, will be subject to the FX
rate that prevails at the time.
All futures and options on futures trading - which includes such product areas as short - term interest
rate and swap products,
bonds, equity options, stock indexes, commodity and FX instruments - are transacted on a
single electronic trading platform, LIFFE CONNECT, with central margining and clearing provided by ICE Clear Europe.
The portfolio's characteristics should make it similar to high - yield
bonds, offering the chance for some thrills and interest
rate insulation plus high
single - digit returns.
The longer the maturity (for a
single bond) or average maturity (for a
bond fund), the more likely you'll see prices move up and down when interest
rates change.
With less trustworthy AAA paper around, many muni managers have decided that holding AA and
single - A
rated muni
bonds isn't so bad after all.
In addition to the standard measures, I look for companies with good
bond ratings, which are the best
single measure of a companyâ $ ™ s creditworthiness.
We clearly need to do some refinement of the data to see whether a few categories are highly resilient (for example,
single - state muni
bond funds might never change their star
ratings) and, thus, skewing the results.
You don't want to put all your money into a
single bond, since there is a risk of default even on the highest
rated bonds.
No
bonds of any kind can reach such a level of growth as any price appreciation in
bonds depends on the few
single - digit changes in market interest
rates.
The discussion of the «negative convexity» and «option cost» of a
bond is essentially a discussion of a
single MBS feature (
rate - dependent cash flows) measured in different ways.
My math is for a
single bond to illustrate the cause / effect of
rate change to price.
Early researchers treated
bonds simply as
single year trading vehicles, sometimes including the effect of capital gains and losses, but more often simply varying the
single year interest
rate.
For a
single bond this isn't a big deal but if hundreds of thousands of dollars have been invested in a
bond mutual fund and interest
rates sharply spike over a few years than the initial capital could drop by double digit percentages.
Duration can be calculated to determine the price sensitivity to interest
rate changes of a
single bond, or for a portfolio of many
bonds.
Since the late 1970s, changes in the interest
rate environment have become the greatest
single determinant of
bond returns, and managing interest
rate risk has become the most critical variable in the management of
bond portfolios.
Also,
single - state muni funds often own relatively long - term
bonds, so they could get hit hard by rising interest
rates.
There are so many ways to lose money investing in stocks and (these days, with interest
rates poised to rise) even
bonds; it's hard to say what is the
single biggest mistake.
Historically, the internal
rate of return has been close to long - term Treasury
bond yields, often in the low
single digits.
The newer EE
Bonds have a
single rate that does not change at any point.
Energy, emissions, agriculture, interest
rates, government
bonds, equity index and
single stock futures and options
Unlike with Whole Life, where a portion of your monthly premium is placed in a
single tax - deferred annuity account with a fixed interest
rate at the time of the purchase of the policy, the savings portion of your premium in a UL policy is placed in a variety of
bonds, mortgages and money market funds by the insurance company.
«The flight to safety by
bond market investors in the post-global financial crisis world drove more cap
rate compression,» for both grocery - anchored shopping centers and
single tenant net lease deals, according to Jim Costello, senior vice president at RCA.
For example, over a three - year period, the average spread difference between
single - A
rated corporate
bonds was 28 basis points, but this year that difference narrowed to two basis points, Wheeler explains.