Sentences with phrase «higher yield to maturity»

You'll still get your 2 % per year, but if you'd bought that bond one instant after if fell in price then you'd own the exact same high quality instrument with a higher yield to maturity than the 2 % yielding bond.

If a higher yield to maturity is due to higher credit risk, on the other hand, then its interest rate risk will have less influence in the bond's overall pricing.

As mentioned, if a higher yield to maturity is due to higher duration risk, then this bond will be more subject to interest rate risk.

Longer maturity bonds usually have a higher yield to maturity than the shorter - term bonds.

Zero coupon bonds are more attractive than regular bonds due to a higher yield to maturity.

Not exact matches

If you plan to hold to maturity you have to be willing to forego the possibility of higher yields assuming rates rise, but then again you don't get dinged on the lower price of the security.

«The extra reward you get in the form of higher yields from stretching on maturity will come back to haunt you should inflation trend upwards faster than expected,» said financial advisor Manisha Thakor, director of wealth strategies for women at The BAM Alliance.

SHYL tracks an index of USD - denominated high - yield corporate bonds with 0 to 5 years remaining to maturity.

The Fund currently holds primarily Treasury Inflation Protected Securities (which currently price in expectations of zero inflation for the next decade or more, while reflecting reasonably high inflation - adjusted yields to maturity).

At that time, the 10 - year Treasury bond had a duration of just 6 years (due to the very high coupon payments and yield - to - maturity available), while the S&P 500 had an extraordinarily low duration of just 16 years.

High - yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to matuyield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to matuYield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.

Interest rate risk Although high yield bonds have relatively low levels of interest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be a factor.

High yield (non-investment grade) bonds are from issuers that are considered to be at greater risk of not paying interest and / or returning principal at maturity.

The first thing they watch when doing so is how high or low interest rates on treasury bonds with different maturities are, which is also referred to as the yield curve.

However we do think US monetary policy will continue to be supportive of higher gold prices, with the Fed keeping rates at zero and the TIPS yielding negative rates for multiple maturities (Please see our previous article: The Key Relationship between US Real Rates and Gold Prices).

Because the Chinese yield curve is extremely flat, investors wouldn't even need to invest in longer maturities in order to obtain higher yields, meaning that they can remain comfortabe in shorter and less risky maturities.

For years, friendly debt markets have allowed issuers to push the «maturity wall» — where tons of bonds come due simultaneously across the high - yield market.

By holding the security during a period when the yield - to - maturity is falling, you not only earn a return that is higher than the original yield to maturity, you earn a return that is dramatically higher than the future yield - to - maturity!

We favor a more even yield - curve exposure today (with positions across maturities) and a more defensive (higher - quality) credit profile — as volatility and heightened credit concerns could lead to significantly wider spreads in the high - yield - bond market.

The yield to maturity is higher than the 3 % coupon because when the bond expires, I get paid back $ 100 a share.

With the rest of the 20 %, I plan to buy individual California muni bonds that offer higher yields and yields to maturity to juice up the return.

Other bond markets, like the high yield corporate and senior loan markets often have high concentrations of debt maturing in specific years in the near future — often referred to as a «maturity cliff».

Naturally, a policy buyer would prefer the insured to be elderly, in poor health, with a policy that has low cash value and a high death benefit, because all of these factors might increase the buyer's yield - to - maturity on the policy when you die.

Alternatively, you might purchase longer - term CDs to get a higher yield, figuring that higher yield will compensate for any early - withdrawal penalty, should you need to cash out before maturity.

Because bonds with longer maturities have a greater level of risk due to changes in interest rates, they generally offer higher yields so they're more attractive to potential buyers.

The yield - to - maturity of the S&P Indonesia Bond Index tightened 80 bps to 7.07 % YTD, and it remains the highest yielding country within Pan Asia YTD, followed by the 7.11 % yield of the S&P BSE India Bond Index.

You can see this by visiting the fund's web page, where you will notice that its coupon is higher than its yield to maturity.

The investor benefits by maintaining regular access to money, while obtaining the higher yields available on longer maturities

These high - quality fixed income assets seek to provide higher yields than other bonds after taxes (and recently longer maturities have been outyielding Treasuries even before tax).

MYGA yields to maturity shown for high - band contracts with the MVA option offered by carriers with minimum credit rating according to A.M. Best.

A bond with a «Put option» works in exactly the opposite manner, wherein the investor can sell the bond to the issuer at a specified price before its maturity if the interest rates go up after the issuance and the investor has other, higher - yielding investment options.

If interest rates continue to fall, we have exposure to longer term maturity bonds with a higher yield, and we may also be able to generate some capital gains as well.

High - yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to matuyield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to matuYield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.

You're not going to receive a very high yield on the CDs with lower maturities.

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.

The investment objective of HDFC High Interest Fund - Dynamic Plan is to generate income by investing in a range of debt and money market instruments of various maturity dates with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity.

«If you have a CD now that rate is fixed until maturity, but if you are considering buying a new one maybe wait until the next interest rate hike to get the higher yield.»

Laddering is a strategy of using CDs with different maturity dates to provide liquidity while still enjoying the higher yield available from longer - term CDs.

However, investors looking for a higher yield, without reducing the credit quality, usually need to purchase a bond with a longer maturity.

A staggered bond portfolio of ultra-short maturity high - yield bonds of less than seven years will give you a solid, almost bulletproof portfolio with yields exceeding 6 % to 17 % a year.

the relationship between interest rates and time, determined by plotting the yields of all or as many bonds of similar credit quality (eg: Treasuries or AA - rated Corporates), against their maturities; yield curves typically slope upward since longer maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed - income product types and credit qualities; these are based on bonds that Fidelity recognizes and are not equal to the entire universe of bonds, which is significantly larger than the number of bonds offered by Fidelity on any given day

Second, the yields are usually higher compared to the normal curve across all maturities.

Due to high uncertainty, the investors become indifferent to maturity periods of the bonds and demand similar yields across all maturities.

High - yield funds, which seek to maximize yield by investing in lower - rated bonds of longer maturities, offer less stability of principal than fixed income funds that invest in higher - rated but lower - yielding securities.

On the contrary, all three GIC ladders offer rates significantly higher than the yield to maturity of CLF.

Use the annually maturing proceeds to purchase a CD at the higher - yielding tail end (six - year maturity) of your ladder.

Bonds will return their yield to maturity but many investors have rushed into higher risk investments without really understanding the true risks.

High - yield corporate bonds may also be used to gain modest exposure to higher - yielding maturities, though the portfolio is unlikely to hold a large percentage of high - yield bonds, especially those of longer duratHigh - yield corporate bonds may also be used to gain modest exposure to higher - yielding maturities, though the portfolio is unlikely to hold a large percentage of high - yield bonds, especially those of longer durathigh - yield bonds, especially those of longer duration.

With a portfolio composed of investment - grade debt from corporate, sovereign and supranational issuers with three - year maximum maturities, the iShares 1 - 3 Year Credit Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield than comparable all - Treasury funds, but it does have a marginally higher credit risk.

Discount refers to a price below the par value (price at maturity) and the interest rate is higher than the coupon of the bond at par.E.g.: Company XYZ Corporate 2015 6.50 trading at $ 95 (6.84 % yield).