Sentences with phrase «buy government bonds rated»

The bottom line of Draghi's answers was that the ECB would only buy government bonds rated lower than investment grade if the countries are in a bailout programme and the programme is not in a review period.

Not exact matches

The threat of a trade war would also freak out the overseas investors we count on to buy our government bonds, and keep our interest rates at super-low levels.

Canada's DBRS is the only credit rating agency willing to give Portugal an investment grade, which allows the European Central Bank to buy Portuguese government bonds.

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.

It's similar to the U.S. government's quantitative easing, but rather than trying to buy government bonds to push interest rates lower — rates are already at zero — the goal is to push the yen down and combat chronic deflation.

Another way to facilitate green investments is for rich governments to buy down interest rates, which makes it more attractive to issue green bonds.

The Federal Reserve will presumably keep its bond - buying program going a while longer after the disruption to the economy caused by the government shutdown, and is not likely to raise interest rates until at least 2015.

«I'm similarly impressed by the fragility of our economic system, even though it's been reinforced with so many heavy measures by governments around the globe, ECB bond - buying programs and zero interest rate policies here in the U.S., for instance.»

These paybacks have pushed up the yen's exchange rate by 12 % against the dollar so far during 2010, prompting Bank of Japan governor Masaaki Shirakawa to announce on Tuesday, October 5, that Japan had «no choice» but to «spend 5 trillion yen ($ 60 billion) to buy government bonds, corporate IOUs, real - estate investment trust funds and exchange - traded funds — the latter two a departure from past practice.»

Various quantitative - easing options focused on government bonds were shown to governors on Jan. 7 in Frankfurt, including buying only AAA - rated debt or bonds rated at least BBB minus, the euro - area central bank official said.

In a country where the unemployment rate is at a 20 - year low and industrial output is approaching historical highs, fueling inflation concerns, a 10 - year government bond yield of 1.5 % is totally inappropriate and will naturally spur people to buy real estate.

For three - straight years — between 2014 and 2016 — the greenback surged higher as the Fed ended «QE3,» the stimulus program that had the U.S. central bank buying as much as $ 85 billion worth of government bonds per month, and did away with the zero - interest - rate policy that was in place since the financial crisis.

Students in every mainstream macroeconomics class, and that means almost all students, would have predicted, based on the nonsense they were learning, that the high deficits and high public debt ratios in Japan at the time, should have driven interest rates sky high, that bond markets should have stopped buying government bonds, that the government should have run out of money, and all the time that these disasters were unfolding, that inflation should have been be galloping towards hyperinflation.

The ECB's decision to start buying $ 60 billion per month of mostly government bonds in March as part of a $ 1.1 trillion QE package has helped ease credit by lowering interest rates, although the rate of improvement might seem disappointing in the short term.

Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault (bank reserves).

This increases the chances that the ECB will keep buying government bonds on a huge scale beyond December 2017 and it increases the likelihood that the ECB will keep its policy rate at their current well beyond 2018.»

The Fed is buying $ 85 billion of U.S. government bonds and other securities with the aim of keeping interest rates low to support economic recovery.

However, Japan also embarked on a process of quantitative easing between 2001 and 2006 similar to that of the UK, buying up government bonds when rock bottom interest rates failed to stimulate the economy, and the process was judged to be less than successful with Japan still facing problems of low growth and falling prices.

If one has bought a bond with few years left for maturity and if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to...

They've also helped drive down long - term interest rates by buying up government bonds and mortgages through a strategy known as «quantitative easing,» or QE.

Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault (bank reserves).

Let's say it's been five years since Corp A issued its bond with a 5 % interest rate, and since then the general level of interest rates has risen so that, today, I could buy a comparable $ 1,000 U.S. Government bond that pays 4.9 % interest.

If we start buying dollars in a big way to depreciate the exchange rate, we will be able to buy fewer government bonds if we are to maintain control over liquidity.

Driving interest rates lower and lower caused bond prices to keep rising higher and higher, which is the only reason investors would buy negative - yielding government bonds.

We are currently seeing negative central bank deposit rates and government and corporate bonds with negative yields, but there are investors buying into these securities.

Government bonds are a traditional way of investing in fixed income, however, with interest rates likely to rise in Canada in the not too distant future and to continue rising in the U.S., forcing down the market value of old bonds with low interest, they could buy investment grade corporate issues with maturities of five to ten years.

Someone who bought shorter duration bonds like 1 year or 5 years government bonds is not suffering capital losses when interest rates rise, just as long he can hold the bonds till maturity.

I've read that because of low interest rates persisting over the past few years buying corporate or government bonds is no longer a good idea.

Since you are bearish on bonds (or bullish on interest rates,) you can buy put options on government bond ETFs.

You can obviously bet on rising interest rates by shorting government bonds, or buying inverse bond ETFs (for example, TBT for inverse long - term bonds — do note that the path taken by returns matters for inverse and leveraged ETFs.)

Companies and governments with lower bond ratings must pay higher interest rates on the debt they issue, in order to get people to buy their bonds.

This was when stock markets were averaging 15 % annually, 3 % GDP growth was considered a bad year, government bonds yielded between 5 % and 10 %, the highest marginal tax rate on ordinary income was ~ 70 %, just about the only way to invest was to pay a full - service stockbroker over 5 % commission to buy a stock or a mutual fund, and inflation was averaging 4 % to 8 % annually.