Sentences with phrase «individual bond maturity»

Investors are paid based on the overall income and return of this portfolio of bonds and not by individual bond maturity.

Not exact matches

It is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature

Unlike mutual funds, individual bonds mature at par letting the investor know exactly what they will earn if the bond is held to maturity.

It's just a form of mental accounting to assume that you'll be able to ignore short - term losses in individual bonds with the knowledge that the principle value will be there at maturity.

Unlike individual bonds, ETFs do not have a maturity date.

Yes, you have a maturity date with an individual bond, but this ignores the opportunity cost of investing at higher future rates in the meantime.

Then, if you really want, you can still hold these individual bonds to maturity and get your irrelevant nominal dollars back.

In theory, you could hold an individual bond to maturity and never lose any money even though the market value of the bond may fluctuate based on changing interest rates and other factors (but you could still lose out to inflation over time).

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.

Holding individual bonds is often looked at as being superior to bond funds because you can simply hold an individual bond until maturity.

As I have covered previously, when you own an individual bond, you invest for a set period of time and get paid interest for the duration or maturity length of the bond.

If you're holding individual bonds and plan to hold them to maturity, no worries.

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.

Of course, if you hold individual bonds to maturity, you may be able to ride out price fluctuations, knowing that as long as the bond issuer doesn't default, you will get your principal back at maturity and interest payments along the way.

Sometimes, you can't hold individual bonds to maturity.

Holding an individual bond to maturity will result in the return of principal (assuming the bond issuer doesn't default), but those nominal dollars will be worth less with inflation and during periods of higher interest rates.

That effectively offers investors something similar, though not identical, to holding an individual bond to maturity.

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.

A bond ladder involves buying a series of individual securities (typically treasury bonds, municipal bonds, investment grade corporate bonds or even CD's) across a variety of maturity dates.

Individual bond prices fluctuate every day, even if held to maturity.

With the rest of the 20 %, I plan to buy individual California muni bonds that offer higher yields and yields to maturity to juice up the return.

When you buy an individual bond and hold it to maturity, the coupon payment you receive is constant during the life of the bond.

The good news: Individual bonds offer a range of credit risk levels and yields for a variety of maturities.

Learn about using bond ladders, barbells, and bullets to help diversify across maturity dates when investing in individual bonds.

It is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature

3) If you're buying individual bonds, if you might need to sell before maturity and you're risking a loss if rates rise in the interim;

In your question you mention purchasing an individual bond and holding it to maturity.

As for bonds, John Mauldin recommends owning individual bonds and holding them to maturity.

At the same time, these 10 companies have issued 362 individual securities that are held in the Global Aggregate, and there are a dizzying array of factors that determine the relative value of each of these bonds, including currency, maturity, coupon, liquidity, and structure, just to list a few.

If you owned an individual bond and held it to maturity, your annual returns would be the starting yield.

While you can build a ladder of individual bonds, you can diversify further by using RBC's family of target - maturity corporate bond ETFs.

Whenever you buy an individual bond or a bond ETF, you'll be quoted both its coupon and its yield to maturity (YTM).

In this article Hylland Capital's investment advisor, Matt Hylland, talks about a relatively new product available for savers that combines the low cost and diversification with today's ETFs and the defined maturity benefits of individual bonds.

If you use an online brokerage, additional transaction fees may apply should you sell an individual bond before maturity.

While individual bonds can be sold before maturity, selling before maturity can result in a loss.

I mean of course individual bonds rather than bond funds since we are talking about a specific loan with specific interest rate and the promise to return the debt at maturity.

In this article with CNBC I talk about a relatively new product available for savers that combines the low cost and diversification with today's ETFs and the defined maturity benefits of individual bonds.

But the fact that you can hold the individual bond to maturity does not make it safer than the bond fund in this case.

This is different from what takes place if you buy an individual bond. Assume you invest in a bond that has a 15 - year maturity.

Individual bonds expose you to significantly more individual entity risk and as I've shown here, a constant maturity bond fund is just as safe as an individual bond when it's held for the right holdiIndividual bonds expose you to significantly more individual entity risk and as I've shown here, a constant maturity bond fund is just as safe as an individual bond when it's held for the right holdiindividual entity risk and as I've shown here, a constant maturity bond fund is just as safe as an individual bond when it's held for the right holdiindividual bond when it's held for the right holding period.

A lot of people argue that individual bonds are safer because they can be held to maturity, but a bond fund is nothing more than the summation of all the individual bonds it holds.

When investing in fixed income, if the intention is for «capital preservation», then isn't it better to buy individual bonds with a fixed interest rate (based upon the purchase price of the bond) and a fixed maturity date?

To many people, the most important part of creating a bond ladder designed to preserve capital and build wealth in a rising - rate environment is buying individual bonds or defined - maturity ETFs.

Of course, if you hold individual bonds to maturity, you may be able to ride out price fluctuations, knowing that as long as the bond issuer doesn't default, you will get your principal back at maturity and interest payments along the way.

Just don't confuse individual bonds with bond funds: individual bonds come with the maturity date, so if the interest rise (or fear) and values of ALL corporate and municipal bonds drops, if you have individual bonds you can just wait to maturity and still get your money.

Unlike individual bonds, bond funds, which hold a collection of bonds, do not have a maturity date and hence the bond principal is not guaranteed on maturity.

Bond funds differ from individual bonds in that most bond funds and ETFs have no set maturity date for the repayment of principal, and offer somewhat less principal protectBond funds differ from individual bonds in that most bond funds and ETFs have no set maturity date for the repayment of principal, and offer somewhat less principal protectbond funds and ETFs have no set maturity date for the repayment of principal, and offer somewhat less principal protection.

Bonds are individual fixed income securities with fixed yields and maturity dates.

That's because, unlike Treasuries, which have big overseas investors, municipal bonds are 70 % owned by individual investors like you and me who hold them until maturity.

For individual bonds, there is a maturity date at which you can expect to receive the face value of the bond (the issuer's creditworthiness is important here).