Sentences with phrase «dated bond buying»

The yield on the U.S. 10 year Treasury bond recently hit 9 - month highs and the 2s10s spread widened on news of the Bank of Japan trimming its long - dated bond buying program and questions around China's ongoing purchase of U.S. Treasuries (USTs) with its foreign - exchange reserves.

Not exact matches

Under this hypothetical policy, governments transfer money directly to taxpayers to encourage spending, a handout funded by issuing bonds with a coupon of zero and no maturity date, which central banks buy.

One line of thinking now is that the central bank may opt to combine the two programs and buy longer - dated bonds more aggressively, then set as its new target the total balance of bond holdings or the size of its balance sheet, the sources said.

The easiest way for the central bank to ramp up the size of its balance sheet would be to buy longer - dated government bonds.

This way, if a bear market occurs, you have a year of cash becoming available at the maturity date so that you do not have to sell stocks, and in a bull market you can buy new bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high quality bonds give versus cash or CDs.

This program, known as Operation Twist, basically involves the central bank's selling of shorter - term bonds and buying longer - dated issues.

Unlike most types of bond mutual funds which maintain a constant duration, Defined Maturity Funds allow the duration of the fund to shorten naturally, by buying bonds which all mature around a specific maturity date, and holding those bonds to maturity.

Build Your Bond Portfolio -: To build a municipal bond portfolio, you need to invest more money into buying more municipal bonds with different expiration dates, and reinvesting your interest into buying more boBond Portfolio -: To build a municipal bond portfolio, you need to invest more money into buying more municipal bonds with different expiration dates, and reinvesting your interest into buying more bobond portfolio, you need to invest more money into buying more municipal bonds with different expiration dates, and reinvesting your interest into buying more bonds.

Where will the demand for longer - dated bonds come from if the Fed stops buying?

A bond ladder involves buying a series of individual securities (typically treasury bonds, municipal bonds, investment grade corporate bonds or even CD's) across a variety of maturity dates.

Countries usually raise money by issuing bonds in their own currency; the specifics can vary greatly, but they're basically IOUs that others can buy and which pay out a greater value at some later date.

Target - date funds are accelerating the bond - buying activity of investors across all generations.

In a classic bond ladder, Bob would buy a range of bonds with maturity dates that are spread out evenly across different years.

I also exclude bond FUNDS, which I would never advocate anybody to buy — I'm referring to actual bonds which have a maturity date and you're guaranteed the return of your principal.

If you buy a bond, you can simply collect the interest payments while waiting for the bond to reach maturity — the date the issuer has agreed to pay back the bond's face value.

The company or government adds a callable clause that allows them to buy back the stock or bond before the maturity date.

By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year.

Along come some trusts that buy long bonds and sell short - dated participations against them, and hedge the curve risk with Treasuries.

If you've bought the Tesco bond above for # 110, but you'll only get # 100 when it matures, the redemption yield would be 2.2 % (assuming the bond matures exactly four years from the purchase date).

When I was a bond manager for an insurance company that had long - dated promises to pay, I bought a variety of fixed - rate bonds that that appreciated dramatically in value in a falling interest rate environment.

You might use them to fund a future obligation on a specific date: if you know that you will need your money in 2015 for a down payment, you could buy the RBC Target 2015 ETF instead of putting it in a savings account or buying a four - year bond or GIC.

As the bond nears its maturity date, you will be unable to buy it for much less than its maturity value (including the interest), for exactly this reason.

If you combine them with lots of other funds — as many people do — it will be harder for you to gauge how your savings overall are split among stocks and bonds and you'll may very well undermine the rationale for buying a target - date fund in the first place — i.e., to assure you have a coherent and consistent investing strategy.

When you buy an individual bond, you buy a fixed income investment that pays you a specific fixed interest and «promises» to return you your principal when due — i.e. on the date when the bond is matures.

These funds buy a diverse and regularly revised portfolio of stocks and bonds that takes into account where you are in life and when you plan to retire — your «target date.»

But anytime you sell a bond before its maturity date, it could be worth less than you paid for it if interest rates have gone up since you bought it.

Here's the lesson: anytime you sell a bond before its maturity date, it will either be worth more than you paid for it (because interest rates have gone down since you bought it) or worth less than you paid for it (because interest rates have gone up since you bought it).

A way to invest in bonds by buying bonds with different maturity dates.

When investing in fixed income, if the intention is for «capital preservation», then isn't it better to buy individual bonds with a fixed interest rate (based upon the purchase price of the bond) and a fixed maturity date?

The portfolio manager bought two Great - West Lifeco Inc. bonds earlier in 2017 that were trading at a discount to what he believed they would get called at — par ($ 100)-- at the next call date.

The call optionCall option An agreement that gives you the right to buy a stock, bond, or other investment at a set price by a set date (within a set time period).

An agreement that gives you the right to buy a stock, bond, or other investment at a set price by a set date (within a set time period).

The call price is the price a bond issuer or preferred stock issuer must pay investors if it wants to buy back, or call, all or part of an issue before the maturity date.

Where will the demand for longer - dated bonds come from if the Fed stops buying?

However, people who buy bonds with longer maturity period, say of 10 - 15 years, often choose to sell off the bond before reaching the maturity date, simply because the maturity period is too long.

Unlike bonds, stock doesn't have a maturity date and there's no guaranteed cash payout for buying stock.

Yield to Maturity (Average YTM) The percentage rate of return paid on a bond, note or other fixed income security if the investor buys and holds it to its maturity date.

Say an investor bought a bond issued at $ 100 with a maturity date of April 1, 2025.

A goal of a properly structured laddered bond portfolio should be to buy primarily non-callable bonds, or bonds that are only callable within a few years of maturity, as opposed to having 10, 15 or 20 years between the call date and the maturity of the bond.

Yield to Maturity (YTM): YTM is the percentage rate of return earned on a bond, note or other fixed income security if you buy and hold it to its maturity date.

The need for short - dated tax - free muni bonds drives hedge funds (typically) to buy long munis and sell short term debt to finance the bonds, which tax - free money market funds buy.

If you are buying corporate bonds on the secondary market, the prospectus may be out of date.

For example, if you buy a bond and interest rates rise, you may incur a loss if you need to sell the bond before its maturity date.

If you buy US Treasury notes, bills, or bonds the interest earned is also directly deposited to your account on the date of issue.

If you buy an I Bond from www.treasurydirect.gov you will receive this rate for 6 months from the date of purchase and then it will change to the new rate that will be announced May 1.

Investors buy them with the understanding that they will collect the original principal plus interest when the bond matures at a set date.

You can either buy a 5 - year bond or GIC whose maturity date matches your time frame or you could construct a bond ladder.

A bond option is the right, but not obligation, to buy (via a call) or sell (via a put) a specified face value of bonds at an agreed price (the strike price) on or before the option expiration date (in the case of American - style options) or only on the expiration date (for European - style options).

A strategy for investing in which investors buy a bond and hold the bond until the date of maturity when the investor receives principal back and interest, if any.

As we sit here today, the Federal Reserve is propping up the bond market, buying long - dated assets with printed money.