Sentences with phrase «caused bond values»

Long - term bond rates have risen about one percentage point since then, and that has caused bond values to fall.

Not exact matches

That's boosting the outlook for inflation, causing the rout in bonds to deepen in Europe after more than $ 1 trillion was erased from the value of the global debt market.

If I read this correctly, any inversion that fails to cause an immediate recession is proof positive that inversions are meaningless, the bond market clueless, and data analysis of little if any value.

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.

These risks include interest rate risk, which may cause the underlying value of the bond to fluctuate.

The presentation made clear the risks, which hinged on the nations not defaulting or the bonds losing so much value they caused a cash squeeze.

The cause, it seems, are «haircuts ``, Wall Street jargon for the amount subtracted from the market value of an asset, such as a government bond, that is used as security when a bank borrows cash from another bank.

Beyond the invaluable bond such a gesture will create, you'll be more clear on any major differences in cultural background or values that may have caused rifts between you two otherwise.

Holding long - term bonds over the long - term is a scary proposition — rates are bound to increase someday which would cause the value of TLT to drop.

That's because it would cause bonds — and maybe even high - yield stocks — to fall in value.

If that's the case, the USD would not necessarily go up and could weaken, causing the f / x risk in foreign markets to lessen, and possibly raise the value of those bonds in USD.

This happens because as new bonds are issued at higher rates, existing bonds with lower rates become less attractive to investors, causing them to drop in value.

Inflation is important to homebuyers because inflationary pressure can reduce the value of fixed investments like mortgage bonds, causing the home loan rates tied to them to push higher.

I expect interest rates to rise at some point in the future which should cause the value of the bonds held to decline.

The consolidated litigation alleges that the defendants managed the plaintiffs» investments imprudently in violation of its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by causing its stable value funds to invest heavily in the Intermediate Bond Fund (IBF) and the Intermediate Public Bond Fund (IPBF).

As we'll soon see, it's the unchanging nature of the interest rate that causes bonds to go up and down in value.

The supporting rationale is that the moderately greater return of bonds as compared to cash helps minimize the impact of inflation, which starts to cause a more noticeable erosion of your portfolio's real value when compounded over more than a few years.

Because of compounding growth (Article 3), we know that the slightly higher returns of bonds in a bond / stock portfolio will cause a substantially higher terminal value than a portfolio with a similar balance of cash and stocks in most historical periods.

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.

Event risk The risk that a bond's issuer undertakes a leveraged buyout, debt restructuring, merger or recapitalization that increases its debt load, causing its bonds» values to fall, or interferes with its ability to make timely payments of interest and principal.

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

A swap into shorter - maturity bonds will cause a portfolio to fluctuate less in value, but may also result in a lower yield.

Rising interest rates will cause the value of your bonds to decline, a problem if you need to sell investments before they mature.

Investments in stocks and bonds are subject to risk of economic, political, and issuer - specific events that cause the value of these securities to fluctuate.

Because bonds can be traded before they mature, causing their market value to fluctuate, the current yield (often referred to simply as the yield) will usually diverge from the bond's coupon or nominal yield.

January 2008 by AAII Staff No matter the cause of interest rate movements, the impact on the bond investor is the same: Rising interest rates reduce existing bond values and falling interest rates increase existing bond values.

In contrast to popular belief, equities underperform during periods of rising inflation as rising interest rates cause the net present value of future cash flows to decrease (though equities do fair better than bonds).

As the account owner, you have the right to invest these bonds and other stocks in the market, but keep in mind that this causes your cash value investment to fluctuate.

Since rising rates will cause the value of bonds to fall, why not just stay out of bonds until yields are higher?

Inflation causes fixed - income investments like bonds to lose value, and that causes their yields (another way of saying interest rates) to increase.

If the market expects interest rates at the time the option becomes active to be such that the issuer will exercise its option and call the bond, the option is said to be «in the money,» which can cause the security to trade at a premium to par, or a price higher than the bond's face value.

Behavioral issues not only indicate that our beloved companion is unhappy, but cause a breakdown in the human - animal bond that we so value.

He said there was cause for caution with equity markets hitting record highs, government bonds historically expensive, corporate and high - yield spreads at record lows, and «bitcoin mania» taking hold, creating a market capitalization of $ 500 billion with «as far as we can tell, zero intrinsic value.»