Sentences with phrase «for bonds increases»

The report concluded that the industry was still too small to pose a risk to overall financial stability, but that could change if demand for the bonds increases.

And that's why, when demand for bonds increases and bond prices go up, interest rates go down.

Assuming there is no doubt about the creditworthiness of the issuer, one should be willing to pay $ 94.48 for the bond increasing its payment at 3.4 % per year, accepting an initial current yield of 1.06 %.

Not exact matches

«Finally, the increased role of bond and loan mutual funds, in conjunction with other factors, may have increased the risk that liquidity pressures could emerge in related markets if investor appetite for such assets wanes.»

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

«If the BOJ were to ease policy, it would therefore be most natural for it to increase government debt purchases and target longer - dated bonds,» Kuroda said in a confirmation hearing in the lower house of parliament.

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

In this regard, our surveillance has been closely monitoring for any signs of liquidity strains associated with the recent increases in spreads for high - yield corporate bonds, as well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last December.

Trump's plans to increase fiscal spending has boosted bond yields — a change that would support higher revenue for banks currently languishing in a low - interest rate environment.

Gifting «appreciated assets» — stocks, bonds or mutual fund shares that you've held for more than one year and that have increased in value — to charity often flies under the radar due to the popularity of cash donations.

Neither argument holds right now for holding any tactical cash, especially with no reasonable prospects for a near - term rate increase and the yield differential offered by bonds over cash right now.

Under that policy, the Federal Reserve has kept interest rates low and engaged for period of years in a campaign of aggressive bond purchases that have increased monetary supply and bolstered the stock market.

Looming Fed interest - rate increases could change the landscape for bond investors.

Nickel set for biggest weekly increase since April 2009 Dow Jones Industrial Average reaches record on Thursday Gold heading for worst week in a month Largest increase in 30 - year Treasury yields since 2009 Italian bonds are poised for worst three - week selloff since 2011 Emerging - market stocks set for biggest three - day slide since August 2015 Mexico's peso plunges 12 percent in three daysCommodities

Investment grade bonds contain «AAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decrease.

The chase for yield has also caused many investors to increase the duration in their bond holdings to earn more income.

Since bonds are generally considered to be less risky, and a higher interest rate generally increases demand for bonds, that may hurt demand for stocks.

Typically, a higher - rate environment will increase spreads for banks / insurers, but you're absolutely right that the 10 - year yield could stay flat, especially when the yields for government bonds of other countries are so low.

Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to rise in Feb: HW Corp bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury yield reaches 3.0 % for first time since 2014: CNN Money

For 2014, Humana discounted from its EPS calculation losses from paying down some bonds, even as its overall debt levels increased.

If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than face value, since other investors are willing to pay a premium for a bond with a higher interest payment.

The one I come back to is surprisingly simple: Increased demand for quality long - term bonds combined with a limited supply has created ashortage of investment - grade securities.

Capital appreciation potential Companies issuing high yield bonds have the potential to turn around their financial standing, creating the opportunity for investors to realize capital gains as bond values increase, due to improving business conditions or improved credit ratings.

They note, for example, that the size of large trades of US investment grade corporate bonds (so - called «block trades») has continuously declined in recent years.6 Furthermore, in most corporate bond markets, trading appears to be highly concentrated in just a few liquid issues, and concentration appears to be increasing in some market segments.

Far more common, and often much more important for most types of businesses, interest expense on the income statement represents the cost of borrowing money from banks, bond investors, and other sources to meet short - term working capital needs, add property, plant, and equipment to the balance sheet, acquire competitors, or increase inventory.

But lower interest rates generally mean higher stock and bond prices, as well as increases in the value of real estate, which has been another important source of wealth for many savers, particularly seniors.

The ability of the central bank to buy a bond directly from the govt would avoid any contractionary effects while the new money used to pay claims clearly increases the money supply which may help during downturns (when this helicoptering mechanism should be considered for use to some degree).

For example, if inflation and interest rates increase rapidly soon, it may be prudent to add more bonds to your portfolio or replace cash ballast with intermediate term bonds.

The big topic here is that if Treasuries are doomed to fall, we can expect weaker bonds to be put under increasing stress, leading to events that coukd serve as a catalyst for defaults and repricing in the broader asset class.

We've all been there: Reading positive headlines about a company and wondering if you should buy their stock; seeing interest rate predictions and wondering if your bond portfolio is ready for the inevitable increase.

At the same time, rising rates depress bond prices and may be especially tough for credit - sensitive bonds, because higher rates increase the cost of capital.

I'll keep to my allocation for now and may increase bond if the market keeps rocketing upward for too long.

According to the statute's own language, it was designed with the «purpose of reducing the need for future tax increases, maintaining the highest possible bond rating, reducing the need for short term borrowing, providing available resources to meet State obligations whenever casual deficits or failures in revenue occur, and providing the means of addressing budgetary shortfalls.»

As it had announced at the end of 2016, the ECB cut the size of its monthly bond purchases from $ 80 billion to $ 60 billion in April, but President Draghi also moved to quell speculation about an increase in the ECB's deposit rate later this year, which some critics had called for, even before any curtailment of the ECB's quantitative easing program.

The resulting increase in corporate bond issuance has pushed up swap spreads, with the spread on US 10 - year (bank / government) swaps, for example, recently at its highest level for several years (Graph 7).

Use of the green bond designation expands the State's network of potential investors and results in an increased demand for our bonds.»

Investors will therefore require a higher yield than would otherwise be the case for this bond, increasing its credit spread.

She's promised to increase the federal minimum wage and will call on Congress to mandate that investors hold on to stocks and bonds for a minimum time period, to curb Wall Street's so - called «churn and burn» reputation, and to reduce «investment speculators.»

Instead, I'm paying down debt and building a municipal bond portfolio to pay for my living now that interest rates have increased post election.

In addition, continuing robust Uridashi issuance appears to have provided ongoing support for the Australian dollar, despite increased maturities of existing A$ Uridashi bonds.

Since you can't find bonds paying a 3 % interest rate and increasing it each year on top of providing some value appreciation over time, I think PG is the best bet for many conservative portfolios.

Most bonds (not junk bonds) represent a less risky investment than most stocks, which means that stocks have to offer a higher return as a premium for increased risk.

After a double - digit increase in stocks over the past year, you may need to reduce stocks and add fixed income to return to the appropriate mix of stocks and bonds for you.

I could ride out a crash for 3 - 4 years and live off the cash but what worries me is the market crashing and not recovering for 10 years, once in the new sipp, when i rebuy, i could rebalance but id have to buy a bond etf [vanguard] so could increase safe asset class.

Longer ‐ term bonds carry a longer or higher duration than shorter ‐ term bonds; as such, they would be affected by changing interest rates for a greater period of time if interest rates were to increase.

The unit, the chief investment office (CIO), has been the biggest buyer of European mortgage - backed bonds and other complex debt securities such as collateralized loan obligations in all markets for more than three years... The unit made a deliberate move out of safer assets such as US Treasuries in 2009 in an effort to increase returns and diversify investments.»

Nevertheless, the apparent success of the ECB's policy in overcoming the threat of deflation increased speculation about a potential tightening of monetary policy, possibly even before the cessation of the central bank's bond purchases — scheduled to continue for at least the rest of the year — and in the wake of the ECB meeting pushed market estimates of the odds of a rise in official interest rates before the end of 2017 to more than 50 %.

Indeed, the supply of dollar bond issuance in this year's first quarter hit record levels, and those levels don't account for the increased use of «reverse Yankee issuance,» whereby U.S. corporations issue into European markets denominated in euros.

So if interest rates stay substantially low with few prospects for increase it's likely the issuer will call or buy back the bond before maturity.

-LRB-...) The strength of demand for eurozone «periphery» debt reflected increased investor appetite for higher - yielding government bonds as well as rising confidence in the creditworthiness of eurozone economies.