Sentences with phrase «government bonds because»

Corporate yields are an average of two percentage points higher than government bonds because there's a higher risk of default.

SWENSEN: If you looked at — if you looked at Yale's bond portfolio 20 years ago, probably a market portfolio, market duration, it was all government bonds because I believed that there are better ways for Yale to take equity risk than to own corporate bonds.

even say that Japanese investors have gained an appetite for European government bonds because European bonds are supposedly seen as attractive alternatives to U.S. government bonds because of stronger growth in the Euro Zone.

And also according to these market analysts, Japanese investors are the main buyers of European government bonds because Japanese investors supposedly see European bonds as a more attractive alternative to U.S. government bonds.

Corporate bonds are considered to be riskier than government bonds because the investment grade rating of corporate bonds varies depending on the debt issuance and revenue of the company.

It is invested primarily in the credit market, not so much in government bonds because government bond yields are so low, but we're looking for absolute returns even if interest rates go up, so some of the portfolio, a significant piece of it actually, is floating rate, so if interest rates go up, you just get higher cash flows, which will support higher returns, and the rest of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.

For example, some people believe that there is inherent risk to investing in US Government Bonds because of their high sovereign debt load and other macroeconomic factors.

David Lloyd at Newport Partners advises against holding government bonds because interest rates are so low.

It is important to consider trends in US government bonds because they normally suggest what is to come in the biggest part of the bond world.

Not exact matches

The BOJ currently makes the distinction because buying long - term government bonds for monetary easing could bind its hands on policy for longer than it wants and make a future exit from ultra-loose easing difficult.

Under its current asset - buying and lending tool, the BOJ limits the duration of government bonds it buys to three years because it wants to push down the cost of borrowing for companies, many of whom work in three - year investment cycles.

Because the central bank's purchases represent increased demand, it tends to push up government bond prices, thus lowering yields.

The Hungarian government is paying through the nose to borrow — when it can at all — because its bonds are trash.

Allan Small, a senior investment adviser at DMW Securities, has avoided government bonds for the past few years because they pay so little.

This is because the ECB faces a couple of restrictions when buying government bonds.

Government bonds could help reduce default risk, but because of the length of maturity required to earn any meaningful yield, they do little to reduce duration risk - i.e. the overall sensitivity of a portfolio to interest rate rises.

Taxable municipal bonds The interest on some municipal bonds is taxable because the federal government will not subsidize the financing of activities that do not provide significant benefit to the public.

If you purchase directly from the government, you must place bids for the bonds you want — these are noncompetitive bids because you know and agree to the price you will be paying.

Money, equities, bonds, titles, deeds, contracts, and virtually all other kinds of assets can be moved and stored securely, privately, and from peer to peer, because trust is established not by powerful intermediaries like banks and governments, but by network consensus, cryptography, collaboration, and clever code.

And the US government is going to create about $ 2 trillion of new Treasury Bonds and exchange these perfectly good Treasury Bonds that are as good as cash (because you know the government can always print the money), they'll exchange these bonds — cash for tBonds and exchange these perfectly good Treasury Bonds that are as good as cash (because you know the government can always print the money), they'll exchange these bonds — cash for tBonds that are as good as cash (because you know the government can always print the money), they'll exchange these bonds — cash for tbonds — cash for trash.

This differs from quantitative easing as practiced thus far because the central bank acquires no asset from the government that it could resell to the public in the future, unlike the normal Treasury bonds currently held by the Fed.

What about the argument that the equity - risk premium (the premium that investors demand over risk - free assets such as government bonds) has fallen close to zero because of greater economic stability?

Treasury bonds (T - Bonds) are issued by the U.S. Treasury and are viewed as the safest investments in the world because they're backed by the U.S. governbonds (T - Bonds) are issued by the U.S. Treasury and are viewed as the safest investments in the world because they're backed by the U.S. governBonds) are issued by the U.S. Treasury and are viewed as the safest investments in the world because they're backed by the U.S. government.

We value investors argue that fixed - income investments are risky and artificially overpriced because of government intervention in the bond market.

Most municipal bonds are considered quite safe and generate decent returns, but they vary considerably because not all cities and local governments are created equal.

However, because the agency bond issuers are guaranteed by the federal government these bonds are generally considered safer than even the safest corporate bonds.

The Fed has been in the news lately because it plans to reduce its holdings of longer - term government bonds.

The central bank may also look for a way to avoid buying Greek bonds, because of uncertainty whether a new government in the country will honor all the its obligations.

US Treasury Bonds are considered extremely low risk because they are backed up by the US Federal Government.

And therefore, those are the sorts of concerns, clearly as bond investors we have to have in the back of our mind because while we're still very much supported by central banks continuing to buy government bonds, the Fed [US Federal Reserve] has announced that it is beginning now to not only end the taper, that ended some time ago, they are potentially selling bonds back into the market.

I don't want to mislead in this article because the investments I will be discussing are a bit riskier than FDIC insured certificates of deposit or government bonds.

Because of its special relationship with the United States, US investors got favorable tax treatment when buying Puerto Rican government bonds.

Analysts at Moody's Investors Service Middle East in Dubai say the issuance is credit positive for Saudi banks because their profitability will benefit from the transfer of their large, low - yielding reserves of cash and placements from the Saudi Arabian Monetary Authority and other banks to higher - yielding government Islamic bonds.

That's in large part because dividend yields have been considerably higher than government bonds in most developed markets including Canada over this time.

QE3 is somewhat different because Friedman advised the Bank of Japan to buy unlimited amounts of government bonds until growth returned.

Government bonds of economically stable countries like the United States are rather popular financial investment to safely «park» unused capital because they are relatively safe and provide a guaranteed interest rate.

HSBC declined to participate because its larger customer deposits means it would lose money by taking part in credit easing, which involves a government guarantee on bonds issued on wholesale funding markets.

The two young men had listened to Mario's speech as it began to come together, «and when you work in government... you go through such highs and lows together that you really bond or you wind up very distant from the other person, because you really get to see a person's character,» Andrew Cuomo said.

It did not have to do so because the bonds were denominated in Russian Ruble and the government could simply have printed money to pay the bonds.

These types of bonds significantly reduced the County's cost of borrowing because of the high interest subsidies provided by the federal government.

«I am not saying this money should be given to states but be in form of bond depending on how Federal Government wants to design it because it is understood that if such huge money which may run into N2 to N3trillion get into states, it may cause inflation but to avoid such, a flexible term and measure will be applied by the Federal Government.

The Tories were yesterday keen to highlight comments from Pimco, a bond investor that employs Ed Balls's brother, Andrew, saying it was going to going to cut back on buying UK gilts because of concerns about the level of government borrowing.

Federal and state governments could either support city programs or directly finance the upgrades; their bonds would be more efficient because they would cover larger populations.

Although government bonds are supposed to be guaranteed because they can use tax revenue to pay out the money, there have been instances of countries like Russia defaulting on its domestic currency debt.

Partly because the starting point is very low, with bund yields (German government bonds) still less than 1 %.

That's in large part because dividend yields have been considerably higher than government bonds in most developed markets including Canada over this time.

The third approach is to ignore government bond rates in the local currency entirely, either because you believe that they are not liquid enough to yield reliable numbers or because they contain default risk.

Namely, bond coupon payments are determined by market interest rates, the type of issuing entity (government bonds pay lower coupons than corporate bonds because of lower default risk), the creditworthiness of the issuing entity (AAA companies pay lower coupons than CCC companies), and the maturity of the bond, which we will talk about next.

They're generally safe because the issuer has the ability to raise money through taxes — but they're not as safe as U.S. government bonds, and it is possible for the issuer to default.

Because these bonds aren't quite as safe as government bonds, their yields are generally higher.