Sentences with phrase «comparing bond values»

Presented by: Scotia McLeod In this webinar sponsored by Scotia iTRADE, and presented by Scotia McLeod, the instructor will help demystify bonds by defining bond conventions, comparing bond values, and taking a look at the Canadian yield curve expectations.

Not exact matches

Comparing them to a 30 - year Treasury bond of 3 % (133 % yield ratio) and 1.9 % core inflation, their value is evident.

Convertible bonds, which are bonds that may be exchanged for a specific amount of a company's stock at a future date, may be priced inefficiently compared with the value of a company's stock or its straight bonds.

The default assumptions for comparing the harvesting strategies are 60:40 equity bonds, 30 year retirement and portfolios of bonds in intermediate (not short) term treasuries and stock in 70 % total market and 10 % each in small company, small value and large value.

You can see that the value of the bond (specifically the price) varies very little over time compared to stocks.

If you're buying a French bond (payable in Francs, for example) remember that you're subjecting yourself to both «country risk» (the risk that the country of France decides not to pay off their debts) as well as currency risk (the risk that the Franc loses some value compared to the dollar).

For example, from the market's high in October 2007 to its low in March 2009, a portfolio with 90 % in stocks and 10 % in bonds would have lost about 45 % of its value compared with a 29 % loss for a 60 - 40 stocks - bonds mix (assuming no rebalancing).

Their yield is calculated by comparing the bond's purchase price and its future value.

One reason that a bond can be significantly less than face value is because people are seeking better investments elsewhere, so for example if a bond doesn't mature for another 10 years, that 20 % increase in face value isn't very attractive when compared to say leaving your money in the stock market for 10 years.

To compare the two in the current market, and to convert older bond prices to their value in the current market, you can use a calculation called yield to maturity (YTM).

You say: «In terms of numbers, varying allocations according to P / E10 historically would have allowed us to increase the amount that we could withdraw SAFELY from 4.0 % to 5.0 % + (of the portfolio's initial value plus inflation), when compared to a fixed allocation of stocks and bonds.»

Emerging market bonds are also cheap compared to their historical values.

The authors calculated the average ending values for a $ 1 million portfolio invested all at once in a mix of 60 % stocks and 40 % bonds turned into $ 2,450,264 on average, compared to $ 2,395,824 when dollar - cost averaged over the course of a year — a difference of more than $ 54,000.

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.

Usually on a fixed - coupon bond (e.g. Government bond) the interest rate is fixed for a given period (say 10 years), and if market rates rise the face value of the bond falls, to compensate for the lower return a new buyer would get, compared to the market interest rate.

Compared to commercial credit ratings, Maximum Loss compares the loss potential of a security to its trading value, resulting in limited exposure to bonds trading expensively compared to their potential losses and encouraging the purchase of bonds trading near or below their workoutCompared to commercial credit ratings, Maximum Loss compares the loss potential of a security to its trading value, resulting in limited exposure to bonds trading expensively compared to their potential losses and encouraging the purchase of bonds trading near or below their workoutcompared to their potential losses and encouraging the purchase of bonds trading near or below their workout values.

It may be valuable to also consider the environment and compare that drop in value to other asset classes during that time period: the S&P 500 Index was down over 46 %, the S&P GSCI was down over 67 % and high yield corporate bonds were down over 30 %.

Foreign bonds issued in foreign currencies face those risks, plus a third: swings in the value of the dollar compared with other currencies.

One way to analyze the relative value of inflation - linked bonds versus nominal bonds is to compare the implied break - evens priced between the two against near - term inflation expectations.

Insurance companies are bond surrogates, in effect they are compounding book value at a rate that you can compare to a zero coupon bond (assuming they don't pay a dividend).

Similarly, bond values respond differently to changes in interest rates depending on their durationDuration Duration is a way to compare bonds with different interest rates and terms.

I don't think comparing relative value between bonds and stocks is a great way to determine whether stocks are attractive.

It is, perhaps, unsurprising to see that bonds have held up their value in the past quarter but it is surprising to see that US markets have held up relatively well compared to Canadian and other foreign markets.

Duration enables investor to more easily compare bonds with different maturities and coupon rates by creating a simple rule: with every percentage change in interest rates, the bond's value will decline by its modified duration, stated as a percentage.

The risk for bond investors that the issuer will default on its obligation (default risk) or that the bond value will decline and / or that the bond price performance will compare unfavorably to other bonds against which the investment is compared due either to perceived increase in the risk that an issuer will default (credit spread risk) or that a company's credit rating will be lowered (downgrade risk).

In effect, when compared to the end of March 2009 figures above, there was roughly a 6 percentage point total value shift in favor of stock funds and a 1 percentage point shift in favor of bond funds — all away from money market funds.

He has called his approach «expected value analysis»: it is based on calculating the percentage likelihood of various outcomes and multiplying them by the current bond price, after which he compares the expected value with the current market price to determine whether he should buy or sell.

In terms of numbers, varying allocations according to P / E10 historically would have allowed us to increase the amount that we could withdraw safely from 4.0 % to 5.0 % + (of the portfolio's initial value plus inflation), when compared to a fixed allocation of stocks and bonds.

Bond spreads are the common way that market participants compare the value of one bond to another, much like «price - earnings ratios» are used for equitBond spreads are the common way that market participants compare the value of one bond to another, much like «price - earnings ratios» are used for equitbond to another, much like «price - earnings ratios» are used for equities.

Bond - rating agencies are sounding the warning on conduit loans: in their view, the loans are getting too large compared to the likely value of the real estate they are securing.