Sentences with phrase «current yield of the bond»

Not exact matches

«If we assume extremely pessimistic nominal earnings growth of 3 % over the coming decade and a compression in the price - earnings ratio to 10, equities would still deliver returns above current bond yields.

The average BB rated bond, which is what Dell's current debt is rated, is trading at a yield of 5.8 %.

By the way, the duration of the five - year 5 % bond (using a current yield of 3 % and semi-annual compounding) is 4.68 years (calculated on my spreadsheet).

Indeed, Randell Moore, who survey's economists as the editor of the Blue Economic Indicators, says the current consensus is for the yield on the 10 - year Treasury bond to rise to 3.25 % by the end of 2015.

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close

Global bonds are vulnerable due to low current yields, depressed term premia1 and the desire of developed - market central banks to unwind unconventional policies.

In viewing your chart in one of your other posts regarding the long term returns of long bonds when current yield is under 3 %, why would I want to diversify into almost certain loss, after effects of inflation?

The marginal benefit of bonds vs. cash is so small, at current yields, that one can argue it just isn't worth it.

Consumer confidence and high yield bond spreads corroborate the unemployment rate in suggesting that we are in the mature stages of the current business cycle.

So why would an investor choose to hold bonds if this type of market is a possibility from current yields?

Fears that the current crop of earnings may be as good as it gets and that higher bond yields will sap demand for equities, all...

Fears that the current crop of earnings may be as good as it gets and that higher bond yields will sap demand...

Increase in bond yields in the current quarter of the financial year 2017 - 18 resulted in losses in the company's long - term maturity investments, it said in the filings.

Our Investment Strategy Report published on March 19 compared equity and bond yields over multiple business cycles and found that the 10 - year Treasury yield might have to sustain levels exceeding 3.5 % (far above what we believe is likely this year) before compelling a year - end 2018 S&P 500 Index target range below our current year - end target of 2800 - 2900.2

For example, one can now easily earn 1.25 % (or greater) in a savings or money market account versus the 0.73 % current yield of the Vanguard International Bond ETF (BNDX).

The one - day loss for many funds, including Vanguard Total Bond Market, iShares Core U.S. Aggregate Bond, Pimco Total Return and Metropolitan West Total Return, while less than a half a percentage point, still amounted to more than 10 percent of their current yield.

Higher oil prices would reinforce current market trends based on reflation: rising long - term bond yields and a shift out of perceived safer assets — bond proxies and low - volatility stocks — and into cyclical assets such as EM.

Historically, the REITs have yielded as low as 0.73 % over bonds and as high as 10 %, suggesting that current yields are at the low end of the range.

In the long run both types of investment create capital that can yield substantial positive rates of return (above the current 30 and 50 year real bond rate) and result in both higher productivity and stronger labour force growth.

After having risen 19 basis points the first week of July, the yield on the S&P / BGCantor Current 10 Year U.S. Treasury Bond Index dropped 20 basis points from the July 3rd 2.72 % to its current 2.52 %, offsetting the initial inCurrent 10 Year U.S. Treasury Bond Index dropped 20 basis points from the July 3rd 2.72 % to its current 2.52 %, offsetting the initial incurrent 2.52 %, offsetting the initial increase.

As Mr Draghi said in his press conference today, the bank will be buying bonds with a negative yield of no more than -0.2 pc (which is the ECB's current deposit rate).

The month of May closed on a high note for bonds as the drop in yields saw the S&P / BGCantor Current 10 Year U.S. Treasury Index closed at a yield of 2.47 %.

Yields moved lower as the yield - to - worst of the S&P / BGCantor Current 10 Year U.S. Treasury Bond Index is now at a 2.49 % which brings it back down to level Read more -LSB-...]

Any discussion of P / Es must include the current levels of inflation and bond yields.

-- The last time the yield of the S&P / BGCantor Current 10 Year U.S. Treasury Bond Index was in the neighborhood of 2.4 % was back in June 2013.

As a result, the current spread between Australian and US 10 - year bond yields, of around 115 basis points, is much the same as at the time of the last Statement.

Given the huge opportunity cost of allocating to cash or bonds at current yield levels, even generally optimistic return assumptions for stocks are enough to keep portfolio level returns near 0 % real.

The current strength of the dollar, driven by short - covering, rising bond yields and a slowdown in Europe, has rattled a market which previously held a general belief that the greenback would continue to weaken.

Cons: The primary negative associated with investment grade floaters is that when issued they generally offer current yields that are significantly lower than a typical fixed rate bond of the same maturity offered by the same issuer.

Conversely, as interest rates fall, prices of outstanding bonds rise until their yield matches that of new bonds issued at the current rate.

If you own a $ 1,000 bond with an annual interest payment of $ 80, your current yield is 8.0 % ($ 80 / $ 1000 = 8.0 %).

They simulate future bond yield as a linear function of current bond yield with noise, assuming a long - term average of 5 % and bounds of 1 % and 10 %.

This contrasts with the current 10 - year Government of Canada bond yield that is just above 1 %.

Matt's take: YTM is a good indicator of what the bonds in the fund are yielding at a current point in time.

The roughly 1.7 per cent current yield on a 10 - year Government of Canada bond is still well below its historical average over the past 30 years, according to Bloomberg data.

Make a forecast of future inflation using current bond yields, assume that dividend and earnings growth history will repeat themselves, and you get a long - run equity - return forecast of 9.27 %.

The current yield rises with a corresponding drop in the price of a bond, and vice versa.

There are different ways to measure yield, but the simplest is the coupon of the bond divided by the current price.

Yield to maturity is very similar to current yield, which divides annual cash inflows from a bond by the market price of that bond to determine how much money one would make by buying a bond and holding it for one Yield to maturity is very similar to current yield, which divides annual cash inflows from a bond by the market price of that bond to determine how much money one would make by buying a bond and holding it for one yield, which divides annual cash inflows from a bond by the market price of that bond to determine how much money one would make by buying a bond and holding it for one year.

If the 30 - year bond is trading at 6 %, then based on the historical yield spread, the five - year should be trading at around 1 %, making it very attractive at its current yield of 5 %.

But while you could get 5 % on bonds a decade ago, the current yield on 10 - year Government of Canada bonds is about half that today.

Let's call it a Treasury Bond Bubble, because other classes of intermediate term debt have significant yield spreads over Treasuries because of the current economic volatility.

Japanese sovereign bonds represent over 70 % of market exposure; the current yield - to - maturity of the S&P Japan Sovereign Bond Index is 0.22 %, compared with 2.83 % for the S&P China Sovereign Bond Index.

Given such aggressive conversation by highly placed individuals, the market took heed as the yield on the S&P / BGCantor 7 - 10 Year U.S. Treasury Bond Index moved 45 basis points wider, from a recent low of 1.35 % on May 1st to its current level of 1.80 %.

The portfolio you see here would yield a high amount of current income from the bonds and would also yield long - term capital growth potential from the investment in high quality equities.

The last time the yield of the S&P / BGCantor Current 10 Year U.S. Treasury Bond Index was in the neighborhood of 2.4 % was back in June 2013.

If the investor purchases a bond at a premium of $ 1,100, her current yield would be ($ 50) / ($ 1,100), or 4.55 %.

The yield - to - maturity is the interest rate — known as a discount rate — that sets the present value of the bond equal to its current price.

In your case, because your bond matures in 56 years but yields ~ 5 % (well above the current market rate), for it to be below Face value implies a strong probability of default, or a strong belief that market returns will be above 5 % over the next 56 years.

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close