Sentences with phrase «free bond yielding»

An investor in the 35 % tax bracket can calculate the tax - equivalent yield for a tax - free bond yielding, say, 4.25 %:

Not exact matches

If interest rates rise and push that risk - free rate of return higher, then those dividend stocks and high - yield bonds are vulnerable.

We believe that long - term tax - free municipal bonds that offer near - 4 % yields (a 6.62 % taxable equivalent at today's top rate and 6.15 % even at the new proposed top rate of 35 %) still offer superior value.

Meanwhile government bond yields, a reliable barometer of market fear, are falling to record low levels as investors engage in a panicked hunt for risk - free assets.

While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.

There's reason to be concerned about bond vigilantes, who are no longer under «lock and key» and are free to push yields higher, Wall Street veteran Ed Yardeni told CNBC on Friday.

Tax risks While municipal bonds can offer attractive effective yields and can be a way to generate tax - free income, they may not be right for investors in every tax bracket or for every type of account.

The risk - free interest rate approximates the yield on benchmark Government of Canada bonds for terms similar to the contract life of the options.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

A high quality muni - bond portfolio can yield close to 4 % tax free, with inflation essentially not existent and equities at an all time high I'm curious if there is a flaw in my logic?

With my personal investment return goal of 3X the risk - free rate of return (10 - year bond yield), anything above 6 % looks attractive, depending on risk.

What is the risk - free interest rate (which we consider to be the yield on long - term U.S. bonds)?

Although municipal bond yields are generally lower than taxable bond fund yields, some investors in higher tax brackets may find they have a higher after - tax yield from a tax - free municipal bond fund investment instead of a taxable bond fund investment.

Bond yields may seem like a dial that can be cranked up or down to control returns, but the reality is that there's no free lunch.

The REIT that was was attractive with a 5 % dividend yield when the 10 - year bond yield was at 2 % is no longer attractive when the 10 - year bond yield is also at 5 % because the 10 - year bond is risk - free.

When investors buy stocks, they get a higher yield than in banks or Treasury bonds, and they essentially get the company for free!

It also can be used to compare the whole market against bond yields... In most cases the earnings yield of equities are much higher then in risk free treasury bonds Earnings yield is basically the amount of earnings you buy for every dollars worth of...

Investors looking to balance risk and income while searching for yield may want to consider the iShares S&P National AMT - Free Municipal Bond Fund (MUB), the iShares Core Dividend Growth ETF (DGRO) and the iShares U.S. Preferred Stock ETF (PFF).

This extends muni bonds» multi-month-long streak in net inflows — already one of the longest in U.S. history — proving that in a world of low government bond yields and macroeconomic uncertainty, munis continue to be sought as a «safe haven» for their relatively low volatility, modest gains and, of course, tax - free income.

Municipal Bonds provide investors with a great combination of high yields and tax - free income.

For starters, the ECB's $ 489 billion in three - year loans at 1 % interest gives banks a free lunch arbitrage opportunity (the «carry trade») to buy Greek and Spanish bonds yielding a higher rate.

T. Rowe Price New Income (PRCIX) Thrivent Income A (LUBIX) Vanguard GNMA Securities (VFIIX) T. Rowe Price High - Yield Bonds (PRHYX) T. Rowe Price Tax - Free High Yield Bonds (PRFHX) Vanguard Long - Term Treasury Bonds (VUSTX) T. Rowe Price International Bonds (RPIBX) Fidelity Convertible Securities (FCVSX) PIMCO Short - Term A (PSHAX) Fidelity New Markets Income (FNMIX) Eaton Vance Government Obligations C (ECGOX) Vanguard Long - Term Bond Index (VBLTX)

Even in a world where short - term interest rates will continue to rise as the Federal Reserve raises policy interest rates (most likely 2 — 3 times next year) and where long - term rates should rise slowly as the Fed lets its balance sheet shrink, tax - free yields should either stay the same or move down as the municipal bond world confronts a market with much less issuance.

Note that for my Sharpe ratio, I used a risk - free rate of return of 2 % as a proxy for the average US 10 - year bond yield over the past 5 years.

The investment seeks results that correspond generally to the price and yield performance, before fees and expenses, of S&P California AMT - Free Municipal Bond index.

If one has bought a bond with few years left for maturity and if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to...

At this writing the 30 year US treasury bond yields just 3.137 % — less than half of the tax free municipal bond!

Because municipal bonds seek to provide tax - free income, they have generally offered higher yields than their taxable counterparts.

Another option is to purchase tax - free municipal bonds which are free from state and federal taxes and can provide decent yields to provide additional income.

U.S. municipal bonds, whether tax - free or taxable, offer incremental yield relative to the negative or near zero yield environments seen in the Eurozone and Japan.

The risk - free rate is customarily the yield on government bonds like U.S. Treasuries.

Schwab Intelligent Portfolios (free) beat its peers over the past two years, thanks to its stakes in foreign stocks, high - yield debt and foreign bonds, says the Robo Report newsletter.

Investors looking to balance risk and income while searching for yield may want to consider the iShares S&P National AMT - Free Municipal Bond Fund (MUB), the iShares Core Dividend Growth ETF (DGRO) and the iShares U.S. Preferred Stock ETF (PFF).

When risk - free and AAA - rated corporate bonds yield less than 4 %, 3.5 % yield on utilities and 6 % yields from junk ETFs are difficult to pass up.

CAPM's starting point is the risk - free rate — typically a 10 - year government bond yield.

The S&P Short Term AMT - Free Municipal Bond Index has seen its weighted average yield remain fairly steady and has recorded a modestly down June so far of Read more -LSB-...]

There are 5 other ETFs in the High Yield Bonds ETFdb.com Category that are also eligible for commission free trading:

The following table displays sortable expense ratio and commission free trading information for all ETFs currently included in the High Yield Bonds ETFdb.com Category.

For example, the spread between high yield junk bonds and the risk - free rate of comparable treasuries has rarely been this low.

The tax - equivalent yield is the pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax - free municipal bond.

For example, assume there is a tax - free bond that is yielding 7 %.

This calculation can be used to fairly compare the yield of a tax - free bond to that of a taxable bond to see which bond has a higher applicable yield.

When comparing municipal bonds to investment - grade corporate bonds, the S&P National AMT - Free Municipal Bond Index has a yield - to - maturity of 3.17 %, compared with the S&P U.S. Investment Grade Corporate Bond Index's 3.16 % pre-tax.

A rare twist in the markets may be ending as a result: yields of tax free high yield municipal bonds are 34bps higher (Yield to Worst) Read more -LSByield municipal bonds are 34bps higher (Yield to Worst) Read more -LSBYield to Worst) Read more -LSB-...]

Option free bonds have positive convexity; bonds with embedded options, such as callable bonds and mortgage - backed securities, have negative convexity, meaning the graph of the relationship between their price and yield is convex rather than concave.

But with the muni bonds» tax - free status, that «true yield» actually rises to 5.5 %, assuming a 33 % federal tax bracket.

This bond breakout underway is issuing a stark warning: Get out of passive stock investments and real estate on any near - term rallies... If yields spike, as I expect we'll see, it'll send both asset classes into free fall.

Finally, they backtest volatility prediction / risk parity allocation effectiveness separately for stock, commodity, high - yield corporate bond, investment - grade corporate bond and government bond indexes (each versus the risk - free asset).

The investment - grade issues in the S&P National AMT - Free Municipal Bond Index have a tax - equivalent yield of 3.36 %, which is superior to the S&P U.S. Issued Investment Grade Corporate Bond Index yield of 3.13 %.

A rare twist in the markets may be ending as a result: yields of tax free high yield municipal bonds are 34bps higher (Yield to Worst) than high yield corporate byield municipal bonds are 34bps higher (Yield to Worst) than high yield corporate bYield to Worst) than high yield corporate byield corporate bonds.