Sentences with phrase «cause bond prices»

Yes, rising interest rates do cause bond prices to fall, and this drags down performance in the short term.

A higher - than - expected PPI is considered inflationary, and can cause bond prices to fall and yields and interest rates to rise.

And not just as a counterweight to more volatile equities — the steady decline in interest rates since the 1980s caused bond prices to rise, giving their holders» RRSPs a nice tailwind.

Elliott built up most of its position in Energy Future's debt after Texas regulators rejected NextEra's offer earlier this year, causing bond prices to crash, the sources said.

Loading the Fed up with bonds creates the danger of big losses for the central bank if interest rates rise (which causes bond prices to fall).

This causes bond prices to rise.

This causes bond prices to rise.

If stocks are in favor, money is pulled from bonds, causing bond prices to drop and interest rates to rise.

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.

The soothsayers had a brief opportunity to be smug in 2013, when rates spiked in the spring and caused bond prices to fall sharply.

Not exact matches

The bond market sell - off since late last week stemmed from inflation worries caused by rising commodity prices and growing Treasury supply, as well as bets the Federal Reserve would further raise key borrowing costs, analysts said.

Dip in share prices and bond yields, along with the upcoming election has had an impact on the state of the global economy, causing a setback in business travel growth.

For instance, in 1987 the rise in interest rates caused the price of the Vanguard Total Bond fund to plummet by a whopping -7.6 percent.

The effect that interest rates have on the prices of bonds owned by the fund will cause the income that the fund distributes each month to vary.

This has caused many investors to shift their bond allocation in anticipation of a rate increase and price losses in bonds.

As with all bonds, a rise in interest rates causes prices of bonds and bond funds to decline.

How can that be if rising interest rates cause the prices of bonds to fall?

Sudden decreases in inflation usually cause the opposite reaction, where bond yields decline and prices increase.

Nonetheless, as Draghi's remarks imply, the unleashing of massive new money into bond markets via QE is causing distortions, with some bond prices increasingly disengaged from economic fundamentals.

As discussed in Article 6.2, rising inflation usually causes higher bond yields but lowers bond prices.

Lesson 3: Duration and Interest Rate Risk — Since interest rates affect bond prices, one of the biggest risks when investing in bonds is that interest rates will move higher, causing the value of your bonds to lose value.

All this currency intervention from central bankers is not only causing stocks to rise, but bond prices have risen as their yields fall in response to news that central bankers are going to be buying bonds in an attempt to lower interest rates further still.

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declBond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond to decline.

This second tutorial on bond prices will explore the primary market factors that can cause prices to change.

Dimon mistakenly falls into the common trap of believing that when the Federal Reserve buys bonds, it causes the price of the bonds to rise.

Bonds face credit risk if a decline in an issuer's credit rating, or creditworthiness, causes a bond's price to decline.

Capital Markets Fixed Income Saudi Arabia has issued its first sovereign bonds since 2007 to help fund a widening budget deficit caused by continued spending amid low oil prices.

This trend would push investors back into bonds and cause the price of Utilities to fall back to a level that better reflects their cash flows and risks.

Bond ETFs are subject to interest rate risk, which is the chance that bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declBond ETFs are subject to interest rate risk, which is the chance that bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond to decline.

A one - percentage - point change in rates would cause a move of almost 10.5 percentage points in this bond's price!

A rise in interest rates will cause existing bond prices to go down.

The US Fed indicated further moves would be dependent on global factors and oil prices — a key detail signifying that future rate hikes seem likely to develop on a slower scale, causing a European government bond market rally on Thursday, sending yields lower in the region.

This means demand for lower - yield bonds will drop, causing their price to drop.

This will cause the demand for higher - yielding bonds to increase, forcing bond prices higher.

The fund holds a small portion of its assets in Puerto Rico municipal bonds that have been impacted by recent adverse economic and market changes, which may cause the fund's share price to decline.

Puerto Rico municipal bonds have been impacted by recent adverse economic and market changes, which may cause the fund's share price to decline.

The only way to get a more favorable price in this scenario is to wait for interest rates to go down, which causes the bond to go back up in price.

If the investor needs some funds before the bond's maturity, the rise in interest rates causes a lower price for the bond on the open market.

When stocks are being sold off, the money is then parked into bonds, which improves bond prices and causes interest rates to decline.

As the Nasdaq moves higher, bond prices move lower causing interest rates to rise.

You may want to consider swapping bonds if you're changing conditions within a specific industry or the overall market is causing issuers to offer higher coupon rates and lower prices for a similar bond (same credit rating, par value, etc.) already in your portfolio.

Expectations about the varying potential for default can cause substantial price differences for bonds that otherwise have similar terms.

As prices fall, bond funds will take a beating in price, causing significant loss in value.

My math is for a single bond to illustrate the cause / effect of rate change to price.

And then there's the risk that interest rates will start climbing and cause capital losses, since bond prices move in the opposite direction.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall.

But sometimes market fluctuations create opportunities by causing temporary price discrepancies between bonds of equal ratings.

Sudden decreases in inflation usually cause the opposite reaction, where bond yields decline and prices increase.

A ratings upgrade is a positive event and can cause the bond to rise in price.

An increase in interest rates, for example, will make some new issue bonds more valuable, while causing some company stocks to decrease in price as investors perceive executive teams to be cutting back on spending.