The move to the new tranche was led
by bond investors uncomfortable with deteriorating mortgage underwriting.
It's not that stock investors collectively take on more risk than the risk that is taken on
by bond investors collectively.
These changes are not taken lightly
by bond investors.
Not exact matches
Global
investors should not be concerned
by a report that China is looking to curb its purchases of U.S.
bonds, one economist told CNBC.
Court documents also show Smith told an
investor of $ 800,000 that the
bonds were backed
by gold or silver.
During the 19 th century, government
bonds were often held
by London - based
investors.
By selling the bonds to Monaco, investors were trying to get around the 11th Amendment to the U.S. Constitution, which says, «The judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by citizens of another state, or by citizens or subjects of any foreign state.&raqu
By selling the
bonds to Monaco,
investors were trying to get around the 11th Amendment to the U.S. Constitution, which says, «The judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States
by citizens of another state, or by citizens or subjects of any foreign state.&raqu
by citizens of another state, or
by citizens or subjects of any foreign state.&raqu
by citizens or subjects of any foreign state.»
Investors can still play it safe
by buying well - known, large - capitalization stocks, he notes, but it may be time to move money out of
bonds, which continue to experience record inflows, and into stocks.
The rise in
bond yields, which
investors fear could hurt equities, has been partly fuelled
by the spike in crude oil prices, which on Tuesday crossed $ 75, boosting energy shares.
Investors increasing their current yield
by taking credit risk in junk
bonds have recently learned a similar lesson.
While offshore
investors can buy
bonds listed on the exchange, he said, they are discouraged
by the lack of a central depositary.
Icelandic banks played the carry trade too, and foreign banks followed suit
by creating «glacier
bonds,» which were repackaged Icelandic
bonds sold to
investors outside the country.
The move rattled
investors because the sanctions require that U.S. citizens must divest of any stocks,
bonds or other holdings in the targeted firms
by May 7.
Buffett has said the best investment he ever made was not a stock or a
bond or even in real estate, but buying a copy of The Intelligent
Investor, a book written
by Benjamin Graham.
Some
investors might react
by moving capital from the U.S. to safe, stable Canada, putting some downward pressure on Canadian
bond yields and pushing up the loonie, said Burleton.
Back in 2010 it paid $ 550 million to settle charges brought
by the Securities and Exchange Commission that it mislead
investors into buying a so - called synthetic collateralized debt obligation named Abacus, which was made up of a bundle of financial instruments tied to subprime mortgage
bonds, many of which plummeted in value shortly after the deal was sold.
«It is a terrible mistake for
investors with long - term horizons... to measure their investment «risk»
by their portfolio's ratio of
bonds to stocks,» Buffett wrote in the February 24 letter.
If Yellen's Fed fails to convince Wall Street about the policy path, a rate increase could trigger financial turmoil of the sort seen in 2013, when
investors were caught off guard
by the central bank signaling an end to its
bond - buying program.
By contrast, many
investors are moving into diversified investment - grade fixed products, such as the IShares Core U.S. Aggregate
Bond ETF (AGG), which has had net inflows of $ 435 million this quarter and $ 2.2 billion of net inflows year - to - date.
In an era when the pension liabilities of local governments remain a concern,
investors may want to consider the debt offered
by established public enterprises — airports and utilities, for example — as an attractive alternative to lease revenue and pension obligation
bonds.
Some
investors are now making calls that the euro zone's central bank could end its massive
bond - buying program
by the end of next year, with a potential rate increase in the fourth quarter.
We believe the treatment of
bond investors by Detroit and Stockton represents the bleeding edge of a trend that accords a higher priority to some public expenditures over others.
Investors should begin their research
by checking out S&P's, Moody's
Investors Service's and Fitch's online credit ratings for cultural nonprofit
bonds.
A downgrade
by a credit rating agency usually means
investors will demand a higher interest rate when a company goes to raise cash
by issuing
bonds or other debt.
Higher yields generally hurt stock prices
by making
bonds more appealing to
investors.
The online lender, founded
by Renaud Laplanche in 2006, has decided to package its loans and sell them to
investors as
bonds, The Wall Street Journal reports.
History suggests this reversal will be driven
by inflation fundamentals, and leave
investors worse off than the 1994 «
bond massacre.»
By reevaluating the current
bond purchase program and refusing to rule out a rate cut, the European Central Bank opened a new set of opportunities for
investors.
The yield on a Treasury bill represents the return an
investor will receive
by holding the
bond to maturity, and should be monitored closely as an indicator of the government debt situation.
But more than anyone, Mr. Schäuble has come to embody the consensus that has helped shape European economic policy for years: that the path to sustained economic recovery for financially troubled countries is to slash spending, raise taxes when necessary and win back the trust of
bond markets and other
investors by displaying commitment to fiscal prudence — even if that process imposes deep economic pain as it plays out.
Bond prices falling along with a falling dollar reflect an exit
by foreign
investors from US
bonds that were attractive when risk off from non US markets was the theme and the dollar was strong.
But at least one analyst who tracks big Wall Street firms»
bonds says there may be an even bigger problem:
Investors, pressured
by the need to generate income, simply don't care whether the banks are too big to fail — one way or the other.
First,
by discovering a contributing factor to the October 2014 U.S. Treasury
Bond Flash Crash, this paper lowers impediments to action by both regulators and investors to prevent similar events from occurring in the U.S. Treasury bond market in the fut
Bond Flash Crash, this paper lowers impediments to action
by both regulators and
investors to prevent similar events from occurring in the U.S. Treasury
bond market in the fut
bond market in the future.
Attract a wider array of capital to clean energy investments
by developing innovative financing structures — from reducing investment risk though our Catalytic Finance Initiative to engaging individual
investors through our Socially Responsible Investing platform to building new markets for green
bonds, yield - cos and other vehicles.
What should worry you is the absence of long - term fundamental
investors who will buy
bonds — intermediated
by dealers, sure — when everyone else is selling.
However,
investors of junk
bonds should note the implications and risks that are involved with investing in
bonds that are issued
by companies with liquidity issues.
Below is my updated recommendation of stocks and
bonds by age for most
investors.
According to fund tracker Morningstar: «A mutual fund is a basket of stocks,
bonds or other types of assets that is professionally managed
by an investment company on behalf of
investors who don't have the time, know - how or resources to buy a diversified collection of individual securities (stocks,
bonds etc.) on their own.
Barclays» Wall Street rivals saw
bond trading revenues rise
by an average of 21 percent in the first quarter, with
investors adjusting their portfolios in response to rising interest rates, and elections in Europe.
There is no doubt that, based on pure, cold, logical data, stocks are the single best long - term performing asset class for disciplined
investors who are not swayed
by emotion, focus on earnings and dividends, and never pay too much for a stock, often as measured on a conservative beginning earnings yield relative to the Treasury
bond yield basis.
For example, some
investors may have taken on more risk in their portfolios in recent years
by moving into lower - quality
bonds or dividend stocks, in an attempt to generate additional yield.
Studies have consistently shown that the returns achieved
by the average stock or
bond fund
investor have lagged the reported returns of the average stock or
bond index, often
by a large margin.
While
investors probably don't want to overweight TIPS in a portfolio, those whose portfolios are dominated
by traditional
bonds may want to consider some exposure to inflation - protected instruments.
Bond funds took in more than twice the amount of
investor money as equity funds did in 2017, despite being outperformed
by equities six to one.
Equity markets fell as
investors shifted to the relative safety of
bonds issued
by the major countries — even though S&P had announced a downgrade of the US sovereign credit rating.
Against this backdrop, some
investors are taking a look at convertible
bonds, which are debt instruments issued
by a company that can be converted into stock of the same company.
Last year's poor showing
by Canadian equities, combined with the Euro - zone crisis saw panicked
investors flock to the safety of quality
bonds.
If a fund
investor is resident in the state of issuance of the
bonds held
by the fund, interest dividends may also be exempt from state and local income taxes.
And even if the indicator was valid (counterfactually), the article asks readers to accept as given that earnings are properly reported here, that they will grow
by nearly 50 % over the coming year, and that
investors are willing to key the long - term return they require from stocks to the yield on 10 - year
bonds, which has been abnormally depressed in a flight to safety.
That will be important to private
investors, because if the central bank held itself out as a privileged bondholder, effectively passing more risk on to other
bond holders, other buyers might undermine the stimulus program
by demanding higher interest rates.