Sentences with phrase «callable bonds for»

Two yield calculations are generally evaluated when it comes to selecting callable bonds for a portfolio: yield to maturity and yield to call.

Two yield calculations are generally evaluated when it comes to selecting callable bonds for a portfolio: yield to maturity and yield to call.

Not exact matches

For bonds with embedded options (for example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the boFor bonds with embedded options (for example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bofor example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bofor the fact that the bond's embedded options may change the expected cash flows of the bond.

As a result, callable bonds often have a higher annual return to compensate for the risk that the bonds might be called early.

Callable bonds are more risky for investors than non-callable bonds because an investor whose bond has been called is often faced with reinvesting the money at a lower, less attractive rate.

For instance, a callable municipal bond is issued with a 6 % yield.

Call Risk Appears Limited for Preferreds Both preferreds and high yield bonds share call risk, though preferreds tend to have more callable issues.

For example, Company A issues callable bonds with an 8 % interest rate.

It is important to know if there are any special features or conditions associated with a bond you are considering for investment because that may affect your decision - making and potential income (from interest if it is callable).

This technique is especially useful for callable and extendible / retractable bonds, whose cash flows depend on future interest rates, or are said to be «path dependent.»

Callable agency bonds with «step up» coupon rates: callable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors ovCallable agency bonds with «step up» coupon rates: callable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors ovcallable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors over time.

Similar issues arise for callable bonds in the American municipal, corporate, and government agency sectors.

HYHG may contain a significant allocation to callable high yield bonds, which are subject to prepayment and other risks that could result in losses for the fund.

For bonds with embedded options (for example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the boFor bonds with embedded options (for example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bofor example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bofor the fact that the bond's embedded options may change the expected cash flows of the bond.

For coupons, which are usually for a stated percentage of the face value of the instrument, the daycount convention does not matter unless the coupon is paid late or the bond is a callable bond that is called in between two coupon paymenFor coupons, which are usually for a stated percentage of the face value of the instrument, the daycount convention does not matter unless the coupon is paid late or the bond is a callable bond that is called in between two coupon paymenfor a stated percentage of the face value of the instrument, the daycount convention does not matter unless the coupon is paid late or the bond is a callable bond that is called in between two coupon payments.

Yields on callable bonds tend to be higher than yields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yields.

In the debt capital markets field, the team advised on the first issue by a South African insurer of callable bonds that qualified as secondary capital for the issuer.