Sentences with phrase «if bond interest»

So if the US government wants to borrow more, that may mean that they will have to pay a higher interest rate on their bonds, and if bond interest rates increase, all interest rates in the economy increase, including mortgage interest rates.

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.

Ultimately these green bonds will only truly be successful if they allow the province to finance transit projects at a lower interest rate than would otherwise be the case.

As Poloz indicated in Toronto, if something went terribly wrong tomorrow, he could cut the benchmark interest rate by a full percentage point before trying something else, such as creating money to purchase bonds.

These corporate fixed - income instruments pay a dividend that is taxed at a more favourable rate than regular bond interest, but you only benefit from this if they are held outside of a registered account.

«If — and it's a big if — U.S. President - elect Trump delivers on his campaign - trail fiscal promises, U.S. market interest expectations and bond yields have room to rise even further in 2017,» says Lena Komileva, managing director of g + economics in LondoIf — and it's a big if — U.S. President - elect Trump delivers on his campaign - trail fiscal promises, U.S. market interest expectations and bond yields have room to rise even further in 2017,» says Lena Komileva, managing director of g + economics in Londoif — U.S. President - elect Trump delivers on his campaign - trail fiscal promises, U.S. market interest expectations and bond yields have room to rise even further in 2017,» says Lena Komileva, managing director of g + economics in London.

That has Deutsche Bank wondering if there is likely to be a wave of companies failing to pay interest on their bonds.

Investors are set to snap up the bonds with an interest rate of less than 3.4 %, the Financial Times reported on Thursday, or about half the rate Sprint would have had to pay if it issued the bonds without any backing.

«In a bond mutual fund, you're invested in a pool of bonds with no set maturity date, which means more risk if interest rates rise.»

If interest rates do increase, which punishes dividend stocks, the funds can shift to bonds.

If at this point we found that using an interest rate of 6.8 % in our calculations did not yield the exact bond price, we would have to continue our trials and test interest rates increasing in 0.01 % increments.

A carry trade is typically based on borrowing in a low - interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest or deploying proceeds into assets — such as stocks, commodities, bonds, or real estate — that are denominated in the second currency.

If interest rates rise, market prices of existing bonds will typically decline, despite the lack of change in both the coupon rate and maturity.

In our terms, there are value investors for Treasuries 10: There are lots of natural buyers and sellers of interest rates, and if Treasury bonds crash dramatically someone will step in to buy them.

Tell me if you have heard this one before: When interest rates go up, bond prices go down.

For example, if you hold a bond paying 5 % interest and market rates rise to 6 %, investors would need to pay less for your bond to be compensated for the lower than market rate.

If interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returneIf interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returneif you hold the bond nothing (other than the scenario of a default) happens & your principle is returned.

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

If you aren't currently investing (hoarding cash for a while because you don't know what to do with it) and have no interest in following the stock and bond market, then investing with a robo advisor is a good value proposition.

If you purchase an individual bond with a five year maturity you will receive interest payments for the term of the bond along with total principal repayment at maturity.

Loading the Fed up with bonds creates the danger of big losses for the central bank if interest rates rise (which causes bond prices to fall).

Since 2013, many investors have shunned this bond index, believing the Agg's higher duration or interest rate risk left portfolios exposed to large losses if interest rates shot up.

So if you own a mutual fund full of 30 year bonds, if interest rates go up one percent, your investment will lose 20 % in value.

We assumed that in each period a 30 - year bond is issued at prevailing interest rates (long - term government bond plus 1 %) and that amount is invested for the next 30 years in a portfolio of large - cap stocks while paying off the bond as an amortized loan (as if it were a mortgage).

If a fund investor is resident in the state of issuance of the bonds held by the fund, interest dividends may also be exempt from state and local income taxes.

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.

Bondholders can still recoup their original costs if the value of the interest income the bond has generated is greater than the lost principal value.

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.

This way, if a bear market occurs, you have a year of cash becoming available at the maturity date so that you do not have to sell stocks, and in a bull market you can buy new bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high quality bonds give versus cash or CDs.

Bond funds typically own a number of individual bonds of varying maturities, so the impact of any single bond's performance is lessened if that issuer should fail to pay interest or princiBond funds typically own a number of individual bonds of varying maturities, so the impact of any single bond's performance is lessened if that issuer should fail to pay interest or princibond's performance is lessened if that issuer should fail to pay interest or principal.

If you're having a difficult time handling the potential risks from rising interest rates, it could make sense to have your safe bucket in cash as opposed to bonds.

If inflation rises or bond yields fall, real interest rates will be pushed into the red... and that's very bullish for gold.

Interest income generated by municipal bonds is generally not subject to federal taxes, and may be tax - exempt at the state and local level as well, if the bonds were issued by the state in which you live.

If the situation deteriorates for a given issue, history has shown there is often a window of time when it is not particularly painful to switch out to a practically identical bond, with much better interest coverage, for nominal costs.

If interest rates rise, bond prices usually decline, and if interest rates decline, bond prices usually risIf interest rates rise, bond prices usually decline, and if interest rates decline, bond prices usually risif interest rates decline, bond prices usually rise.

Interest rate risk If interest rates rise, the price of existing bonds usually dInterest rate risk If interest rates rise, the price of existing bonds usually dinterest rates rise, the price of existing bonds usually declines.

We could take the $ 16 billion we have in cash earning 1.5 % and invest it in 20 - year bonds earning 5 % and increase our current earnings a lot, but we're betting that we can find a good place to invest this cash and don't want to take the risk of principal loss of long - term bonds [if interest rates rise, the value of 20 - year bonds will decline].»

The risks associated with bond investments include interest rate risk, which means the prices of the fund's investments are likely to fall if interest rates rise.

Step - down * Interest on step - down securities is paid at a fixed rate until the call date, at which time the coupon decreases if the bond is not called.

But even if rates remain relatively low, the bond market proxy sectors look extremely vulnerable, as their valuations are highly sensitive to increases in interest rates.

If the government did stop paying interest on its outstanding bonds, those bonds would most likely become less attractive.

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.

There are a couple of interesting options possibilities on JNK and HYG such as bearish verticals if we accept that junk bonds will not be going even higher in the next year or two.

Interest income generated by municipal bonds is generally expected to be exempt from federal income taxes and, if the bonds are held by an investor resident in the state of issuance, state and local income taxes.

When you buy, you do so with the expectation of getting paid back, with interest, in a certain amount of time — criteria that render bonds a low - risk, if boring investment.

But if interest rates and bond yields had decreased in the meantime, you wouldn't be able to generate as much income as before with the same amount invested in a similar quality bond.

In fact, if you don't hold bonds to maturity, you may experience similar interest - rate risk as a comparable - duration bond fund.

(Longer - term bonds risk a price decline if U.S interest rates should rise.)

(Longer - term bonds risk a domestic dollar - price decline if U.S interest rates should rise.)

Duration Risk: If interest rates do ever decide to rise, duration will be the most important statistic for bond investors to pay attention to.