Sentences with phrase «by purchasing bonds»

Bond Ladder Tool Create a consistent stream of income by purchasing bonds with staggered maturities.

Diversification of don investments is done by purchasing bonds with different maturities, credit qualities, industries and countries.

Large bond investors not restricted by the FPR like insurance companies have «asset swapped» into foreign issuers by purchasing their bonds directly and using currency and interest rate swaps to convert the cash flows to Canadian dollar.

Investors could also construct a bond ladder to increase diversification and mitigate credit risk by purchasing bonds with different interest rates and maturity dates.

Those looking to convert risky assets into predictable income streams by purchasing bonds or annuities may be disappointed to learn how relatively little income they can acquire with a given level of wealth.

TeenAnalyst Advice: Bond laddering works by purchasing bonds with different maturities.

The Federal Reserve pumps money into the banking system by purchasing bonds and, when the system breaks down, makes enormous bailout payments to cover the bad debts run up by banks and other institutions to mortgage borrowers, businesses and consumers.

Bond Ladder Tool Create a consistent stream of income by purchasing bonds with staggered maturities.

Not exact matches

The bond purchases, the third round of quantitative easing embarked upon by the Fed in the wake of the 2008 financial collapse and subsequent recession, have kept interest rates and bond yields low.

As Poloz indicated in Toronto, if something went terribly wrong tomorrow, he could cut the benchmark interest rate by a full percentage point before trying something else, such as creating money to purchase bonds.

Amari said purchasing of foreign bonds by a central bank is an option available to each country.

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.

He has implemented a massive stimulus policy by cutting the central bank's benchmark interest rate to negative, keeping the 10 - year Japanese government bond yield near 0 percent in an effort to control the yield curve and stepping up the Bank of Japan's asset purchases.

If it sticks to the plan, it will reduce its bond purchases by roughly $ 420 billion this year.

Announcing the purchase agreement, even simultaneously to the press release, would have done much to create a bond with followers, an «insider track» for them by which to learn the big news.

NEW YORK, Jan 10 - Federal Reserve policymakers reacted coolly to a report on Wednesday that China could curb its massive U.S. debt purchases, pointing out that such rebalancing by countries can be healthy and would not likely disrupt the U.S. central bank's plan to trim its own bond portfolio.

Though «the ECB has been under - purchasing Portuguese bonds,» he said, «it is likely to be relatively less badly - affected by the end of quantitative easing than others, such as Italy.»

When Grogan has made shifts, which have usually involved purchasing real estate or bond investments, she has financed them either through new savings or by selling stocks that have already yielded high profits.

But with the unemployment rate, at 6.2 percent, well below its recession - era peak of 10 percent, and inflation showing no signs of falling further, the Fed has begun to trim its monthly bond purchases, aiming to end them completely by October.

But the bank has taken more extreme measures, such as ramping up purchases to more than 40 percent of the market overall and saying it would control the yield curve by keeping the 10 - year government bond yield around 0 percent.

Adams: Once you've put in $ 25,000 to $ 30,000, it's time to diversify a little — not by selling what you've got but by purchasing individual municipal bonds.

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.

HONG KONG — In 2012, with help from Goldman Sachs, a Malaysian sovereign wealth fund called 1Malaysia Development Berhad sold $ 3.5 billion worth of bonds backed by an Abu Dhabi government fund to help it purchase power plants.

All in all, we believe eurozone bond yields may move a little higher, but any increase is likely to be capped by the ECB's ongoing level of purchases, at least until policymakers start to signal their next steps on monetary policy later in the year.

Bond yields spiked, and prices for a number of other financial assets that had benefited from expectations of ongoing asset purchases by the Fed dropped precipitously, not just in the United States but in almost every other country.

Although the focus on the yield curve has led to fewer bond purchases, the Bank of Japan may have little choice but to continue to inject significant amounts of liquidity into an economy that remains beset by demographic challenges.

Many small - and medium - size banks are increasingly raising money for loans, bond purchases and other investments by issuing wealth management products, and even some largely unregulated companies have begun issuing wealth management products.

Newly issued Treasuries can be purchased at auctions held by the government, while previously issued bonds can be purchased on the secondary market.

Valeri noted that could change, though, as occurred with the first round of quantitative easing, where a massive $ 1.25 trillion purchase of mortgage - backed securities was followed months later by a large - scale purchase of Treasury bonds.

Together with earlier announced bond purchases, the Fed's move will increase «holdings of longer - term securities by about $ 85 billion each month through the end of the year,» the Fed announced Thursday.

If China runs a capital account deficit and the US a capital account surplus, and these are roughly equal to net purchases by the PBoC and other Chinese government entities of US government bonds and US assets, China will run a current account surplus exactly equal to its capital account deficit.

It doesn't matter if you are a fixed income investor considering purchasing bonds issued by a company, an equity investor considering buying stock in a firm, a landlord contemplating leasing a property to an enterprise, a bank officer making a recommendation on a potential loan, or a vendor thinking about extending credit to a new customer, knowing how to calculate it in a few seconds can give you a powerful insight into the health of company.

In 2013, the Fed indicated it would begin to reduce its bond purchases and 10 - year US Treasury rates increased by 1.3 percent to 3.02 percent.

U.S. financial markets were little moved by Thursday's data, with attention focused on details of a ceasefire agreement between Russia and Ukraine and a surprise interest rate cut and bond purchasing program announced by Sweden's central bank.

At the time of purchase for the fund's portfolio, the ratings on the bonds must be one of the four highest ratings by Moody's Investors Services (Aaa, Aa, A, Baa) or Standard & Poor's Corporation (AAA, AA, A, BBB).

In addition to using the automatic payroll option to purchase savings bonds by having money sent by direct deposit from your pay, you can also contribute to your TreasuryDirect account using pension funds, and annuities.

The larger a country's foreign current account deficit, by definition the greater the inflow of foreign money to purchase its assets, mainly government bonds in the case of the US and many other countries.

Such protectionism leaves little option for China and other countries except to hold their currencies stable by purchasing U.S. and European government bonds.

This meant by definition that it must have had an even larger central bank deficit, which means confusingly, that its central bank reserves grew as it exported capital abroad to purchase U.S. Treasury bonds and other assets.

Investors can directly fund affordable housing projects for lower - income families and the homeless, by purchasing sustainable and green bonds.

By purchasing fewer U.S. government bonds, in other words, Beijing would leave the United States either unchanged or better off, while doing so would also leave China either unchanged or worse off.

When it happens it will likely be for a number of different reasons including a combination of higher economic growth, higher inflation, lower risk aversion or a pullback in bond purchases by the Fed.

TreasuryDirect offers a Payroll Savings Plan feature that allows employees to make recurring purchases of electronic savings bonds by having money from each pay sent automatically to a TreasuryDirect account.

«Market discount» arises when a bond is purchased on the secondary market for a price that is less than its stated redemption price by more than a statutory amount.

In addition, the Governing Council announced it would purchase asset - backed securities with underlying assets consisting of claims against the euro area non-financial private sector and euro - denominated covered bonds issued by monetary financial institutions (MFIs) domiciled in the euro area.

Monetary policy can also stimulate economic growth by reducing interest rates through purchases of government bonds.

But long - term government bond yields fell to record lows for many euro area countries after a speech by ECB President Draghi on 21 November, which stressed that the ECB will do what is required to raise inflation and inflation expectation by adjusting the size, pace and composition of asset purchases, if the currently announced policies prove to be insufficient.

The Fed controls monetary policy by making open - market sales or purchases of government bonds and Treasury bills.

a municipal bond that is secured by an escrow fund; the escrow fund comes from the issuer floating a second bond issue and using the proceeds from that second bond issue to purchase government obligations, typically U.S. Treasuries, proceeds from the second bond issue create an escrow fund to mature at the first call date of the first bond issue to pre-refund that issue; bond issuers will typically do this during times of lower interest rates to lower their interest costs

Expectations that sales of Japanese government bonds by the GPIF would partially offset bond purchases by the Bank of Japan also played a role.