The major banks recently raised some of their fixed - rate mortgage rates to reflect their costs of
borrowing on bond markets, which have more effect on longer - term mortgage rates than does the Bank of Canada's overnight rate.
Not exact matches
The Greek government seems ready to tap the
bond markets again as early as next week, a source close to the situation told CNBC
on Tuesday, which would mark the first time since 2014 that the country has
borrowed from the capital
markets.
Moody's has today also placed Spain's Baa3 government
bond rating
on review for possible further downgrade in order to assess the implications of several factors
on the Spanish government's ability to continue to fund its
borrowing requirements in the private debt
markets.
The rates that have responded most significantly to lower
borrowing costs are short - term loans for financial speculation, above all for derivatives and related buying or selling of stocks and
bonds on margin — enormous gambles
on which way the dollar, the stock
market and interest rates may go.
Any significant rise in corporate
bond yields would throw cold water
on a key artificial impetus in the stock
market — corporations
borrowing heavily to buy back their own stock.
If the banks can
borrow at less than 1 % in the short - term inter-bank
market, and get nearly 4 %
on Treasuries, or 5 %
on government - guaranteed mortgage
bonds, why should they ever bother doing anything else?
That was enough to spark a sell - off
on bond markets, which drove the interest rate the U.S. government must pay to
borrow money to rise to its highest level since October 2011.
Rather, the increase in spreads appears to reflect both tightness in the Commonwealth Government
bond market (where supply remains limited and demand by foreign investors appears to have increased) and upward pressure
on swap rates (one benchmark against which corporate
bonds are priced) as companies have sought to lock in fixed - rate
borrowings due to expected increases in interest rates.
Any shortfall which is described as the deficit is financed through
borrowing either
on the domestic
market or international credit
market, euro
bond etc..
On the issuance of $ 2.5 bn for financing the Appropriation Act, Buhari noted that in order to implement the external
borrowing plan approved by the National Assembly in the 2017 Appropriation Act, the Federal Government issued a $ 300m Diaspora
Bond in the international capital
market in June this year.
If you not are not making contributions, not only is the entire balance that you
borrowed missing out
on any potential growth in the stock or
bond markets, but each future contribution that you are unable to make (since you have an outstanding loan) isn't growing either.
In addition to the credit worthiness of the issuer, the price of a
bond on the secondary
market is determined by several factors including the interest it pays, its face value and its duration or how long it is until it matures and the issuer repays the amount
borrowed.
The next time you drive
on a smoothly paved highway,
borrow a new DVD from your library, see an office park rising up in your neighborhood or hear of a factory expansion that's creating new jobs, consider the role of the U.S.
bond market.
Historically an alternative practice of issuance was for the
borrowing government authority to issue
bonds over a period of time, usually at a fixed price, with volumes sold
on a particular day dependent
on market conditions.
In that sense, the Fed and the
bond market integrated, as the
market began looking past the tightening to the long - term future of US
borrowing rates, what happened to short interest rates became less powerful
on long yields.
Bond markets are built
on the premise that issuers can
borrow against the future, and some countries seem to be
borrowing from a future far less rosy than thorny.
A tender - option
bond (from now
on TOB) is the municipal
bond market's answer to the classic
borrow short and invest long.
The interest rates (yields)
on their sovereign
bonds have soared, making it hard or even impossible for them to
borrow in international
markets.