Sentences with phrase «hold bonds as»

If government bonds carried risks similar to stocks, then there would likely be more reasons to hold bonds as funds rather than individually.

They hold my bond as an investment.

Not exact matches

In his subsequent press conference, Draghi avoided answering directly whether the ECB would go from $ 30 billion to zero, saying «we don't stop suddenly,» but also stressing that the ECB will continue buying new bonds as its old holdings mature.

Institutional investors (such as pension funds) routinely insist on holding only highly - rated securities, so a downgrade can force them to sell that issuer's bonds.

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.

According to Rogers, China could reduce its $ 1.12 trillion of U.S. debt holdings by allowing the bonds to roll off as they mature.

Dalio explained that a so - called capital war, when a country uses its asset holdings such as bonds to inflict pain on its adversary, could be even worse than a trade war.

As a result, risky asset classes such as equities and commodities will be assigned much higher reserve requirements than bonds, which is why some insurance industry players are already dumping equities to hold a greater proportion of bondAs a result, risky asset classes such as equities and commodities will be assigned much higher reserve requirements than bonds, which is why some insurance industry players are already dumping equities to hold a greater proportion of bondas equities and commodities will be assigned much higher reserve requirements than bonds, which is why some insurance industry players are already dumping equities to hold a greater proportion of bonds.

Police have not yet identified the deceased, and Bond said «we expect the scene to be held for some time as inquiries as carried out.»

Describing the duke and duchess as «instinctive» parents, Peters continued: «Yes, it could reflect that Kate and William are traditional, but it also reflects the importance of the bond created between father and son and mother and daughter that they both treasure and hold dearly as responsible and loving parents.»

As the Fed pares back bond holdings, the U.S. government brings more to market.

As the Christian Science Monitor noted, that's probably a more realistic concern for China, which holds $ 1.3 trillion in U.S. government bonds, than Washington missing interest or principal payments.

NEW YORK, Nov 28 - The Federal Reserve faces the challenge of standing by as financial markets «correct» as the central bank trims its asset holdings, U.S. hedge fund manager David Tepper said on Tuesday, adding he was surprised the bond - yield curve was so flat.

Investors holding Detroit's bonds have already taken a hit as the steady erosion of the city's finances has slashed the city's credit rating to junk status.

While U.S. savings bonds have lost popularity as a means of long - term savings due to the low interest rates they currently earn, some retirees have been holding on to bonds that were issued when rates were higher.

Once you dig into your fund's prospectus to learn about the holdings, you should see a mix of U.S. and non-U.S. equities, as well as a combination of different bond portfolios.

If my capital market expectations are for a good bond market and a weak stock market in the next year (such as this year), I don't necessarily want to change any of the stocks or bonds that I hold.

As rates rise, it might be better to hold individual bonds instead of bond mutual funds, said James Shagawat, a certified financial planner with the Baron Financial Group in Fair Lawn, New Jersey.

The yield on a Treasury bill represents the return an investor will receive by holding the bond to maturity, and should be monitored closely as an indicator of the government debt situation.

Among households with net worth of $ 500,000 or more, 65 % of their wealth comes from financial holdings, such as stocks, bonds and 401 (k) accounts, and 17 % comes from their home.

In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled.

This comes as the Fed is winding down its bond holdings.

The difference between the issue price and the face value is treated as tax - exempt income rather than as capital gains if the bonds are held to maturity.

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close

And as the Fed's bond holdings keep growing, the portfolio becomes more and more vulnerable to a sudden rise in interest rates (despite Bernanke's confidence that the Fed can manage any potential losses).

For example, if you're early on in your career, most of your money will be held in growth oriented stocks with a small percentage in bonds, and as you mature, your assets will slowly shift to more stable stocks and a greater percentage in bonds to help reduce volatility.

The NAV (net asset value) of a bond fund will move up or down based on a number of factors such as changes in interest rates, credit quality, and currency values (for international bonds) for the different bond holdings in the fund.

When savings account rates and yields on government bonds are low, gold suddenly becomes much more attractive to hold as a store of value.

So if you are hoping your bond holdings will act as a shock absorber during times of volatility, it is worth reviewing your particular holdings to make sure they are positioned to play the role you hope they will.

The earnings yield on enormous blue - chip stocks such as Wal - Mart, which had little chance to grow at historical rates due to sheer size, was a paltry 2.54 % compared to the 5.49 % you could get holding long - term Treasury bonds.

For the money markets, it's not just that the Fed is buying fewer bonds as part of the taper but as the Fed holdings roll off, the Treasury needs to reissue to the private sector in order to pay the Fed back.

Holding individual bonds is often looked at as being superior to bond funds because you can simply hold an individual bond until maturity.

The past decade has been a relatively good time for companies to hold debt as funding costs were low and bond investors were willing to snap up virtually any new offering.

But there are 2 factors to consider in the muni market: First, banks and insurance companies held 28 % of the municipal bonds on the market as of the second quarter of 2017.

If you buy a bond for less than face value on the secondary market (known as a market discount) and you either hold it until maturity or sell it at a profit, that gain will be subject to federal and state taxes.

More than just tempering Gross's anti-equity remarks, the longtime advocate of buying and holding equity - based index funds and ETFs went so far as to say that «equities today are more attractive relative to bonds than at any other time in history.»

But if you're holding Bond ETFs such as iShares XBB (mid-term maturities) or XSB (short - term maturities), then the prices of these ETFs will fall when rates go up.

That will be important to private investors, because if the central bank held itself out as a privileged bondholder, effectively passing more risk on to other bond holders, other buyers might undermine the stimulus program by demanding higher interest rates.

Regarding Sulyma's holdings in the TDF, for example, the 2012 Summary Plan Description advised Sulyma that «[e] ach fund offers a broadly diversified mix of domestic and international stocks and bonds, and includes investments not typically available to individual investors, such as hedge funds and commodities.»

I would be interested if you could compare your 60/40 mix to a 60/40 mix using 5 - year bonds that are laddered so that they can be held to maturity and used when needed as they mature, and therefore never need to be sold at a loss.

If the company's underlying stock decreases in value, an investor can still hold onto the convertible bond and receive the bond's par value at maturity, as long as the issuer does not default.

If taxable bond funds or individual bonds are held in a tax - free account such as a Roth IRA, then the income from them would be free from federal taxes, provided certain requirements are met.

The Federal government is expected to boost the amount it intends to borrow in the coming months, as the Treasury contends with declining tax receipts as a result of the recent corporate and personal tax cuts, as well as widening budget deficits and a Federal Reserve that is slowly reducing its own holdings of government bonds.

Fears of similar upsets appear to be holding back investment flows into government bonds, while thirst for income has boosted other fixed income assets such as credit.

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.

Interest rates hold steady as Fed begins to sell bonds The Federal Reserve's policy of so - called quantitative easing is coming to an end as the Fed announced this week it will begin selling the bonds acquired in the wake of the 2008 financial crisis.

Owning individual bonds provides the investor full transparency as opposed to fixed income mutual funds, which may even hold stocks.

It issued a further 1.949 billion euros in bonds maturing in 2018 as the cut - off rate declined to 4.033 percent from 4.769 percent in a tender held in November.

But as newer bond holdings would get added to the index at the now higher interest rates as older bonds matured the performance would play catch - up.

Meanwhile, «The bottom 90 percent of U.S. households, as measured by net wealth, now hold less than 5 percent of muni bonds, falling from almost 15 percent in 1989.»