Sentences with phrase «if government bond rates»

We want a significantly higher return than from a government bond — that's the yardstick, but not if government bond rates are 2 - 3 %.

Not exact matches

And so what Marks is saying is that it does not matter if your portfolio holds a bunch of, say, «AAA» - rated corporate bonds and highly - rated government bonds like US Treasuries, which are, in theory, highly liquid assets.

If the government can guarantee certain savings in bank accounts through the F.D.I.C., why not establish a program that would require that every employee own a regulated block of stock (Retirement Account) made up of stock in the company the employee works for and, so the employee will not have all his retirement eggs in one basket, include in this retirement basket high rated bonds and stocks from other non-competing employee - owned companies?

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).

Well, if I could borrow at a rate around that of the Federal Government, I'd probably borrow, too (Apple's 2025 bonds yield 2.6 %, compared to 10 - Year treasury of 2.29 %).

The bottom line of Draghi's answers was that the ECB would only buy government bonds rated lower than investment grade if the countries are in a bailout programme and the programme is not in a review period.

The ministers recognise that the government can not be seen to be straying openly from the deficit reduction strategy, and if they did so it would only lead to a self - defeating reaction in the bond markets that drive up interest rates.

If one has bought a bond with few years left for maturity and if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to.If one has bought a bond with few years left for maturity and if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to.if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to...

If governments had followed a formula like «use the Long Baa bond yield for the discount rate,» they would not have been as generous with pensions.

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.

In general, banks need to offer higher, if only slightly higher, rates to attract depositors who might otherwise invest in a US government security or a bond.

We have high yield dividend equities — this is unique to Rebalance IRA — that we use a proxy for a bond fund because interest rates are artificially manipulated by the government and kept artificially lower than they normally would have been if the market had set those rates by its own market forces.

If higher interest rates remain elevated for an enduring length of time, the government will not be in a position to provide fiscal stimulus, as a much larger percentage of its budget will go to paying back the interest on its Treasury bond debt.

Usually on a fixed - coupon bond (e.g. Government bond) the interest rate is fixed for a given period (say 10 years), and if market rates rise the face value of the bond falls, to compensate for the lower return a new buyer would get, compared to the market interest rate.

If you are trying to determine the risk portfolio of your cumulative holdings then I would suggest that yes, it would be appropriate to put your Defined Benefit pension plan into a risk category that has the same risk profile as a highly rated corporate or government bond.

The interest rates of each Savings Bond issue are based on the average Singapore Government Securities (SGS) yields the month before applications for that issue open, and may be adjusted to maintain the «step - up» feature if market conditions do not allow it.

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.

If I'm an investor in government bonds, and I'm worried that a government is borrowing too much money, I may only invest in a bond if they offer me a higher interest ratIf I'm an investor in government bonds, and I'm worried that a government is borrowing too much money, I may only invest in a bond if they offer me a higher interest ratif they offer me a higher interest rate.

Government of Canadas benchmark bond yield is a good place to start if you are looking for a fixed rate mortgage.

If we start buying dollars in a big way to depreciate the exchange rate, we will be able to buy fewer government bonds if we are to maintain control over liquiditIf we start buying dollars in a big way to depreciate the exchange rate, we will be able to buy fewer government bonds if we are to maintain control over liquiditif we are to maintain control over liquidity.

If you purchased a government bond a year ago for $ 100 with a coupon of 4.00 % ($ 4.00 interest per year) and interest rates were to rise to 6.00 % the market may price your older bond at market value for an equivalent coupon of 6.00 %.

Likewise, if interest rates soared to 15 %, then an investor could make $ 150 from the government bond and would not pay $ 1,000 to earn just $ 100.

If you need assistance in calculating your IRD or if you have a Street Loyalty mortgage that bases its IRD calculation off of the applicable Government of Canada bond rate, contact a customer service centre located at the top of this pagIf you need assistance in calculating your IRD or if you have a Street Loyalty mortgage that bases its IRD calculation off of the applicable Government of Canada bond rate, contact a customer service centre located at the top of this pagif you have a Street Loyalty mortgage that bases its IRD calculation off of the applicable Government of Canada bond rate, contact a customer service centre located at the top of this page.

If you have a Street Loyalty mortgage please refer to your mortgage documentation as in some cases the IRD calculation depends in part on the applicable Government of Canada bond rate as opposed to Street's regular / posted rates.

An investment grade rating ensures that credit risks are still pretty low, although corporate bonds won't perform as steadily as government bonds if the market ever swoons again like it did in late 2008.

If interest rates are rising, he argues, it means the economy is improving and the risk inherent in corporate bonds over government bonds is minimal.

Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed princiGovernment bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed princigovernment as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.

If interest rates continue to climb, there is less to gain by replacing older bonds, but local governments may issue taxable bonds if they see an opportunity to reduce interest paymentIf interest rates continue to climb, there is less to gain by replacing older bonds, but local governments may issue taxable bonds if they see an opportunity to reduce interest paymentif they see an opportunity to reduce interest payments.

PPF rate will go down over the long term if the Government bonds yields go down slide the long term.

But if government bonds rose to four per cent, prospective buyers who take on more risk and workload than a bond buyer would demand a higher ROI or cap rate.

If the government defaulted on its bonds, the government likely would have to raise interest rates dramatically, which in turn would hamper home ownership, analysts say.