Sentences with phrase «buying government bonds»

Mike Swan, an associate portfolio manager at Canso Investment Counsel, says that while the chance of default in a corporate bond is always present, investors might actually be taking a greater risk by buying government bonds.

And many people don't even realize that they are buying government bonds.

They've been doing that, in part, by buying government bonds.

It absolutely IS done to finance the debt (through the mechanism of buying government bonds with new cash).

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 tax system operated as a siphon collecting revenue to pay the German and French banks that were buying government bonds (at rising interest risk premiums).

FRANKFURT — The European Central Bank is widely expected to announce on Thursday that it will finally begin buying government bonds as part of a so - called quantitative easing program.

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.

Current measures haven't had time to work and challenges including Greece's political crisis make buying government bonds difficult, he said.

It was almost exactly a year ago that the E.C.B. set eurozone precedent by buying government bonds and other assets.

He said that the central bank would begin buying government bonds based on each country's share of the central bank's capital, which is commensurate with their population and gross domestic products.

The decision to begin buying government bonds on the open market came after a debate that lasted months.

This is because the ECB faces a couple of restrictions when buying government bonds.

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.

The answer is straightforward: The Bank of Japan can buy government bonds on the open market, paying for them with either currency or deposits at the Bank of Japan, what economists call high - powered money.

There were a few dissents, but a majority of the Monetary Policy Committee also opted to create # 60 billion (about $ 100 billion) to buy government bonds over the next six months and # 10 billion to purchase corporate debt over 18 months.

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.

When you buy government bonds, you are loaning money to the government, which agrees to pay you back with interest.

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.»

So yen were borrowed to convert into dollars, euros, Icelandic kroner and Chinese renminbi to buy government bonds, private - sector bonds, stocks, currency options and other financial intermediation.

The ECB's Draghi dropped more hints about how the central bank could support struggling countries, suggesting it was free to buy government bonds maturing in three years or less.

The PM in Tokyo thinks his country's every ill is a lack of inflation, and his new guy at the Bank of Japan is revving up its printing presses to buy government bonds, corporate bonds and ETFs.

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.

14.50 Mario Draghi repeated the ECB was prohibited to print money to buy government bonds when asked about Greece.

And therefore, those are the sorts of concerns, clearly as bond investors we have to have in the back of our mind because while we're still very much supported by central banks continuing to buy government bonds, the Fed [US Federal Reserve] has announced that it is beginning now to not only end the taper, that ended some time ago, they are potentially selling bonds back into the market.

Keynesian thinking presumes that the financial markets will readily buy government bonds to finance the stimulus.

The Swiss franc has appreciated quite a bit recently against the Euro as the European Central Bank (ECB) continues to print money to buy government bonds issues by Greek, Portugal, Spain and now Italy.

Not exact matches

Under this hypothetical policy, governments transfer money directly to taxpayers to encourage spending, a handout funded by issuing bonds with a coupon of zero and no maturity date, which central banks buy.

Put 20 % or 30 % of your money into GICs or government bonds to fund your immediate needs, like paying a mortgage and buying food.

The BOJ currently makes the distinction because buying long - term government bonds for monetary easing could bind its hands on policy for longer than it wants and make a future exit from ultra-loose easing difficult.

The easiest way for the central bank to ramp up the size of its balance sheet would be to buy longer - dated government bonds.

It buys long - term government bonds, including those with durations longer than three years, in what is dubbed «rinban» market operations.

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.

Under its current asset - buying and lending tool, the BOJ limits the duration of government bonds it buys to three years because it wants to push down the cost of borrowing for companies, many of whom work in three - year investment cycles.

QE (as it's known in shorthand) involves the central bank's buying financial assets like government bonds.

Buying corporate along with government bonds will increase your yield.

Rather than follow the Stalin model of turning an agrarian society of Russia into a state - owned industrial superpower like the USSR - killing millions of your own people in the process, incidentally - Myerson suggests that the government own all businesses by buying the stocks and bonds of all businesses as an «investment» in the private sector.

But «investors» is a funny word these days of central - bank craziness: the entity that buys every Japanese government bond that isn't nailed down is the Bank of Japan.

First, he believes that an investor in a low - cost S&P index fund who reinvests all dividends will do better — very likely substantially better — than an investor who buys a 17 - year government bond and reinvests all of his coupons in the same instrument.

When you buy bonds from a corporation, government or other entity, you're lending money to be paid back with interest at a specified time.

While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.

U.S. government bonds saw buying on Tuesday, pulling yields lower, after Secretary of State Rex Tillerson was ousted from the White House.

In its interactions with the government, the financial sector buys bonds (and also makes campaign contributions).

Remember, if the government gives us a tax cut they'll still have to make up the budget shortfall somehow, chiefly by selling more bonds to American citizens (who happen to be the same people getting the tax cut) or foreigners (who will raise the money by selling us more of their goods and services, or buying less of ours).

The real reason may be that they provide flexibility: people who want to consume more can use their tax cut for that purpose; people who want to save more can use theirs to buy up the new government bonds.

«The central banks» plans for printing money to buy bonds from national governments running huge deficits can not be considered a long - term solution to debt problems.»

If you bought long - term government bonds in 1940, forty years later, your dollar was worth $ 0.37, and you weren't made whole until 1991!

The Wall Street firm, however, says it bought the block of bonds, priced at about 31 cents on the dollar, through a broker and did not interact directly with the government.

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