That change
in bond price impacts the return, or the effective rate, provided by the bond.
Not exact matches
Dip
in share
prices and
bond yields, along with the upcoming election has had an
impact on the state of the global economy, causing a setback
in business travel growth.
The uncertainty around the globe — including decrease
in share
prices and
bond yields, along with the upcoming election — has had an
impact on growth
in the business travel industry.
Since changes
in interest rates
impact bond funds differently than
bonds and CDs, estimates of
price sensitivity may be less accurate the larger the shift
in interest rates.
The
impact on asset
prices from such a shift
in policy gears
in the Eurozone would likely dwarf any negative
bond price effects.
The longer a
bond's maturity, the greater the
impact a change
in interest rates can have on its
price.
We can also see the
impact of this return to focus on fundamentals
in the relationship between
bond market expectations for the Fed and its
impact on the
pricing of gold.
For US Treasury securities, the estimated
price impact rose sharply when markets were stressed
in late 2008, underscoring how costly it was to execute trades even
in one of the most liquid
bond markets (Graph 1, right - hand panel).
Strategic Total Return continues to carry a duration of about 3.5 years
in Treasury securities (meaning that a 100 basis point move
in interest rates would be expected to
impact the Fund by about 3.5 % on the basis of
bond price fluctuations), and holds about 10 % of assets
in precious metals shares, and about 5 % of assets
in utility shares.
Recall that even major titans of
bond fund management regularly differ
in their views about the
price impact arising out of stopping and starting quantitative easing programs.
For now, the Strategic Total Return Fund continues to carry a limited duration of about 2 years (meaning that a 100 basis point move
in interest rates would be expected to
impact the Fund by about 2 % on the basis of
bond price fluctuations), mostly
in Treasury Inflation Protected Securities.
While the inflation
impact from higher oil
prices and commodity
prices in general, continue to pump up inflation expectation and push
bond yields higher, keep
in mind that much of the recent spike
in Yields is about as much about supply as it is about inflation.
Strategic Total Return continues to carry a duration of about 3 years
in Treasury securities (meaning a 100 basis point move
in interest rates would be expected to
impact Fund value by about 3 % on the basis of
bond price fluctuations), with about 10 % of assets
in precious metals shares, and about 5 % of assets
in utility shares.
Although the deal was
priced off the municipal
bond desk
in the Public Finance division, sales teams
in corporate investment grade, wealth management capital markets and the firm's Investing with
Impact Financial Advisor group were all used to build the order book.
Recall that even major titans of
bond fund management regularly differ
in their views about the
price impact arising out of stopping and starting quantitative easing programs.
Strategic Dividend Value is hedged at about half the value of its stock holdings, and Strategic Total Return continues to hold a duration of just over 3.5 years (meaning that a 100 basis point move
in interest rates would be expected to
impact Fund value by about 3.5 % on the basis of
bond price fluctuations), with less than 10 % of assets
in precious metals shares, and about 5 % of assets
in utility shares.
Federal Reserve policy has a significant
impact directly on short - term interest rates and indirectly on longer term interest rates, which
in turn affect
bond prices.
Municipal
bonds from oil states such as New Mexico and North Dakota remain
in positive return territory but are beginning to show the
impact of the economic drag low
priced oil has created.
The fund holds a small portion of its assets
in Puerto Rico municipal
bonds that have been
impacted by recent adverse economic and market changes, which may cause the fund's share
price to decline.
Study participants were asked five questions covering aspects of economics and finance encountered
in everyday life, such as compound interest, inflation, principles relating to risk and diversification, the relationship between
bond prices and interest rates, and the
impact that a shorter term can have on total interest payments over the life of a mortgage.
Strategic Total Return continues to carry a duration of about 3 years (meaning that a 100 basis point move
in bond yields would be expected to
impact the Fund by about 3 % on the basis of
bond price fluctuations), with about 10 % of assets
in precious metals shares, and a few percent of assets
in utility shares.
Measures of bid / ask spread and
price impact (the cost of trading) were positively correlated, reflecting the direct costs of trading both
in investment - grade and high - yield
bonds.
This means that
Bond B is more volatile than
Bond A, given a smaller change
in interest rates will
impact its
price to a greater extent.
Looking at this
in terms of an extremely simplistic microeconomic diagram mapping the
impact on the supply and demand of changes
in the
price and volume of
bonds, the retreat from
bond purchasing by The Fed represents a left shift
in the curve that maps demand for all combinations of
price and volume.
The index does not attempt to mitigate other factors influencing the
price of high yield
bonds, such as credit risk, which may have a greater
impact on high yield
bond prices than changes
in interest rates.