Sentences with phrase «if bond values»

If bond values drop, balanced funds and institutional investors are often forced to sell equity positions and buy bonds to re-balance their portfolios.

Not exact matches

«If the company restructures or goes into bankruptcy, the recovery value of the bond is greater than the current price,» he wrote.)

(If you write down the value of this bond — and the resulting future payment obligation — your capital level increases.)

And so the roughly 20 % drop in Deutsche's 7.5 % perpetual CoCo that has happened in just a few weeks is a manifestation of a fear not only that a missed payment will come to pass, but that Deutsche Bank could also write down the value of these bonds if its capital falls below a certain level.

«Barack and I were raised with so many of the same values: that you work hard for what you want in life; that your word is your bond and you do what you say you're going to do; that you treat people with dignity and respect, even if you don't know them, and even if you don't agree with them.

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.

This would treat all her assets — including stocks, bonds and property — as if they were sold on the day before the expatriation date and would impose levies on them based on their fair market value.

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

If you own the bond fund that fell in value, you can sell it right after the fall and still buy the portfolio of individual bonds some say you should have owned to begin with (which, again, also fell in value!).

If you're in for the long haul and want a guaranteed rate of return with no value loss from an investment, a T - bond might be a perfect solution.

If I read this correctly, any inversion that fails to cause an immediate recession is proof positive that inversions are meaningless, the bond market clueless, and data analysis of little if any valuIf I read this correctly, any inversion that fails to cause an immediate recession is proof positive that inversions are meaningless, the bond market clueless, and data analysis of little if any valuif any value.

You can redeem the bond for its face value when it reaches maturity or you can sell it before it matures if you're willing to pay penalty fees.

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 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.

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.

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.

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 the average annual rate of inflation over the next 10 years is 4 %, then the real value of those bonds at maturity is only $ 6,755,641.69.

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].»

Bonds, if held to maturity, provide a fixed rate of return and a fixed principal value.

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.

Yields and market values will fluctuate, and if sold prior to maturity, bonds may be worth more or less than the original investment.

If so, you might avoid the risk that rising rates could hurt the value of your bonds, but what about inflation?

If bonds hadn't risen in value but instead had lost 2 percent, the portfolio would have lost 23 percent.

If the Dollar broke lower, its likely too that bonds and duration would rally; defensives (staples, utes, reits) and growth (tech / biotech / discret) squeeze against crowded value unwinding (fins, energy, indus); yen and euro would squeeze mightily; gold squeezes while copper pukes in a favorite commodities «pair» unwind; HY could reverse weaker vs IG (currently everybody long CCC vs BB on the high beta trade)... this would be the theoretical path to our next pain - trade or even VaR shock.

Treasury bonds won't lose value if you hold them to maturity.

Prospective TIPS investors should be aware that if deflation occurs, the value of the bond will be adjusted downward, and interest payments will be reduced.

If interest rates start to increase, the value of your bonds will decrease.

The idea being that your bond portfolio will have recovered a loss in value if you hold it for the duration.

Nearly all bonds lose value if inflation or interest rates rise.

And if the fiscal problem becomes unstable — more deficit to finance than security markets will allow, the Fed will obey its political masters and finance the deficit by a hyper - inflation, or hyper - tax, as a burgeoning inflation simply taxes all fixed dollar wealth — bonds, dollars, life insurance values, etc. — by the rate of price level increase.

If you buy the bond when issued and choose to hold until maturity you'll get back the face value of the bond plus the interest incurred over a ten year period.

If you can accept that, equities may be much better value than bonds.

Bonds can be a core low risk component of retirement portfolios, but they do come with one significant risk factor: if interest rates go up, the bonds you already own will plummet in vBonds can be a core low risk component of retirement portfolios, but they do come with one significant risk factor: if interest rates go up, the bonds you already own will plummet in vbonds you already own will plummet in value.

You won't see a rise in the value of your holdings with cash during a recession and if you're keeping it in fixed term accounts then it will be adversely affected by rate rises, same as bonds.

But I hope it's clear that if yields do rise sharply, a fall in the value of your government bond fund could be your least concern.

The prices of bonds can fluctuate, and an investor may lose principal value if the investment is sold prior to maturity.

If your portfolio is well diversified with assets that tend to perform differently from each other — international stocks, small company stocks, large company stocks, bonds and real estate — then when one asset class is losing value, you can rely on holdings in another asset class that are more stable or perhaps increasing in value.

Regardless of your age, if you are extremely risk averse and can not tolerate drops in your portfolio value, you may want a greater percentage in fixed / bond assets and a lesser percent in stocks.

If you own stocks, bonds or mutual funds, you can borrow up to 80 percent against the value of your portfolio without having to sell.

For example, a 3 - year duration means a bond will decrease in value by 3 % if interest rates rise one percent, or increase in value by 3 % if interest rates fall one percent.

If the bond included a «call provision,» the issuer can redeem it early, too — in order to issue new bonds at a lower interest rate, for example — but usually pays you a little more than the face value to do so.

If you buy a discount bond, the chances of seeing the bond appreciate in value are fairly high, as long as the lender doesn't default.

Also funds and ETFs that hold corporate bonds and hedge by selling treasury bond futures may lose value if the spread between corporate bond yields and treasury bond yields widens.

If you hold out until the bond matured, you'll be paid the face value of the bond, even though what you originally paid was less than face value.

Many individual bondholders believe the implications of interest rate fluctuations don't impact them because they'll receive their principal value on an individual bond if held to maturity.

If Michael Spencer manages to sell NEX at a price that places a high value on its core FX and electronic bond dealing platform, he will have pulled off an impressive slow - motion brokerage trade.

Cons: Short - term rates are presently very low and even short - term bonds can decline in value if rates rise.

We define intrinsic value as the amount that would accrue to the owners of a security if the underlying company were sold to a rational and well - informed buyer, or the company was liquidated with the proceeds distributed to security holders, or where the particular security sells at a price that would yield no better than a security considered ultra-safe, such as a US Treasury note or bond» Lou Simpson