Sentences with phrase «in bond prices due»

Interest rate risk: Also known as market risk, this refers to changes in bond prices due to interest rate changes.

It measures the percentage change in bond prices due to a one - time across - the - board 1 % inverse change in interest rates.

Not exact matches

The company's senior unsecured bonds due in 2018 last traded Thursday at 5.25 cents on the dollar, down from 72 cents the week before the bankruptcy filing, according to Trace bond - price data.

Bonds due in 2018 and won by BofA were «aggressively» priced with a 1.64 percent yield that narrowed Illinois» spread over Municipal Market Data's benchmark triple - A yield curve to 70 basis points from 100 basis points ahead of the sale, Greg Saulnier, a MMD analyst, said.

«The importance of the wealth - saving relation goes beyond the case usually designated by the Pigou effect, viz., beyond the effect of an increase in the real value of cash balances and government bonds due to falling prices.

«The energy sector posted stronger returns in September due to a rebound in oil prices which helped lift Canadian equities, while the bond market slipped into negative territory after strong Canadian economic growth led the Bank of Canada to raise interest rates for the first time in seven years,» said James Rausch, Head of Client Coverage, Canada, RBC Investor & Treasury Services.

At present, investors have no reasonable incentive at all to «lock in» the prospective returns implied by current prices of stocks or long - term bonds (though we suspect that 10 - year Treasuries may benefit over a short horizon due to continued economic risks and still - unresolved debt concerns in Europe, which has already entered an economic downturn).

Rather, the increase in spreads appears to reflect both tightness in the Commonwealth Government bond market (where supply remains limited and demand by foreign investors appears to have increased) and upward pressure on swap rates (one benchmark against which corporate bonds are priced) as companies have sought to lock in fixed - rate borrowings due to expected increases in interest rates.

Rising rates result in immediate bond price declines, but long - term returns are actually enhanced due to the ability to reinvest at higher rates.

Because bonds are traded in the securities markets, there is always the chance that your bonds can lose favor and drop in price due to market risk.

We know in which direction our bond's price will move due to changes in market rates.

Due to their fixed dividend rate, they often behave like bonds in terms of pricing and portfolio diversification.

The pricing of bonds, however, has become more transparent in recent years due to industry regulation and partnerships.

Some of the bonds that come due in the next 12 months were trading at prices that offered hearty investors a 25 % to 35 % yield, one junk bond manager told us.

The market price of a tradable bond will be influenced, amongst other factors, by the amounts, currency and timing of the interest payments and capital repayment due, the quality of the bond, and the available redemption yield of other comparable bonds which can be traded in the markets.

Junk bonds involve a greater risk of default or price changes due to changes in the issuer's credit quality.

Especially when corporate bond markets are a mess, municipal bonds are suffering under the weight of Puerto Rico's problem, Europe's continued woes, instability in the Middle East, a stalled out stock market and oil prices drop due to oversupply.

If a higher yield to maturity is due to higher credit risk, on the other hand, then its interest rate risk will have less influence in the bond's overall pricing.

Interest rate risk is the risk of changes in a bond's price due to changes in prevailing interest rates.

Stock Markets and the market dealing in corporate and government bonds are affected by falling and rising prices due to irregular bearish and bullish periods.

First, if the firm is covered by the Securities Investor Protection Corporation (SIPC), and most are, the bond is protected against loss — that is, against physical loss of the certificate — not against a decline in price due to market conditions.

If for example, banks were having trouble floating bonds because the spread of corporate bonds was too high versus government bonds (yields were very high because prices are low due to little demand to own these bank issued bonds) they could buy these types of bonds to get money flowing in this space if the central bank so desired.

b) Bond Price Decline due to Rising Interest Rates: Eventually, the bond prices will start falling again (due to rising interest rates) and cause a serious decline in Tom's holdiBond Price Decline due to Rising Interest Rates: Eventually, the bond prices will start falling again (due to rising interest rates) and cause a serious decline in Tom's holdibond prices will start falling again (due to rising interest rates) and cause a serious decline in Tom's holdings.

It is important to be aware that a big jump in interest rates could be quite painful for bond investors due to a combination of falling bond prices, inflation, and taxes.

The idea you're going to make windfall profits from plodding utilities is ludicrous: a) Like bonds, these safe stocks are rapidly becoming dangerous investments due to yield compression, and b) any secular rise (let alone a step - change) in water costs will inevitably sqeeze them, not help them — governments will impede / forbid them to raise prices accordingly!

While we can set up similar reinvestment program for bonds, the swings in bond prices are not as significant due to the fact that bonds offer greater investment security.

The risk for bond investors that the issuer will default on its obligation (default risk) or that the bond value will decline and / or that the bond price performance will compare unfavorably to other bonds against which the investment is compared due either to perceived increase in the risk that an issuer will default (credit spread risk) or that a company's credit rating will be lowered (downgrade risk).

This weeks weakness is due to a rally in crude oil prices, a pickup in government bond yields as inflation rises and geo - political uneasiness around the globe.

Yields on Japanese government bonds due in five years today rose the most since 1999 after consumer prices surged 1.2 percent in March from a year earlier.

The three main risks that they carry are — credit risk where the bond issuer fails to make timely interest payments and repay the principal amount on maturity; liquidity risk where the fund manager is not able to sell his paper due to lack of demand for a particular security and; interest rate risk where a change in interest rate changes the price of the bond.

Some of the bonds that come due in the next 12 months were trading at prices that offered hearty investors a 25 % to 35 % yield, one junk bond manager told -LSB-...]