Sentences with phrase «interest rates on bonds»

But low interest rates on bonds lead to lower discount rates, which leaves pension funds with greater liabilities.

That means higher interest rates on bonds and mortgages and shaved returns on real estate investments.

If interest rates on bonds are awful, it means you should put the money into a money market fund.

With interest rate hikes and indications that there will be further increases in 2018, we've been receiving questions about the impact of rising interest rates on a bond portfolio.

Low nominal and real interest rates on bonds mean a wider risk - premium spread on stocks and a cheaper relative valuation.

The prices of stocks are also awful today, and the only reason people buy them is the awful interest rates on bonds.

Investors, not able to meet their financial goals with rock - bottom interest rates on bonds, are looking for other investments.

In contrast to regular interest rates on a bond, this form of interest is not calculated or paid on a monthly basis.

When comparing interest rates on bonds, factor in your tax bracket to determine if your net yield would be higher with tax - free bonds.

To the issuer, a convertible offers the chance to raise cash without giving away equity too cheaply, or paying a high interest rate on a bond.

To keep this discussion simple, I will focus on the impact of rising interest rates on bond funds, but it's important to note that other bond investments may react differently or have different results than the examples presented below.

Eliminating Puerto Rico's debts could raise interest rates on bonds to insulate against potential defaults, and subsequent debt elimination, on municipal bonds.

That way, you get the long term interest rate on all bonds, but a new rung matures every year or two.

The reason average Americans should care about the «taper» is that higher interest rates on bonds also means higher interest rates on things like mortgages.

While the costs associated with the issuance of bonds are important, a sound transaction: one which lowers the overall interest rate on the bonds will return a far greater savings to an issuer than the costs of bonding.

There is a new category called Credit Opportunities Funds, which invest in companies that do not have great financial strength and thus pay more interest rates on their bonds.

The ability to reinvest some of your portfolio reduces the impact of changes in interest rates on a bond portfolio.

Addressing the Distribution Conundrum — While interest rates on bonds are being lowered, even into the negative, sluggish global growth and inevitable deleveraging has many experts projecting low returns for equities going forward.

This week's award goes to EconompicData, for an important and careful analysis of the effect of rising interest rates on bond investors.

Negotiate the lowest possible interest rate on your bond.

This bill filed by Rep. Jim Murphy would save public charter schools millions of dollars on lower interest rates on their bonds and other related costs.

To keep this discussion simple, I will focus on the impact of rising interest rates on bond funds, but it's important to note that other bond investments may react differently or have different results than the examples presented below.

That's because long - term interest rates on bonds are still bumping along near 4 %, which doesn't even cover taxes and inflation for many investors.

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.

Investment adviser Kelly Gares of BlueShore Financial in West Vancouver, B.C., says one way to mitigate the risk of rising interest rates on bonds is to hold bonds that are close to their maturity date or ones with a short duration.

The yield curve charts the interest rate on bonds of different maturities, from the shortest to the longest maturities.

When using the variables above and the interest rates on these bonds, the actual cost will be about $ 25 per year which is $ 5 less than originally projected.

As a result, the interest rate on those bonds is quite low.

The far greater problem with this is that interest rates on these bonds would likely be significantly higher due to the risk they could be made invalid as they weren't legally issued.

When Ghana issued its first Eurobond under the NPP in 2007, the spread (i.e. the difference) between the interest rate on the bond and US treasuries of similar tenor was 3.87 %.

Participation in the PSF Program allows charter schools to receive lower interest rates on their bonds.

The PSF Bond Guarantee Program was created by the Texas Legislature to enhance a public school's credit rating and thereby lower the interest rates on bonds issued by public schools.

In turn, this lowers the interest rates on bonds issued by public schools.

Always remember, higher the coupon / interest rate on the bond; lower is its inherent credit quality.

An issuer may choose to call a bond when current interest rates drop below the interest rate on the bond.

On a more personal note, the interest rates on bonds are just awful.

That means that they will be willing to accept low interest rates on the bond.

The interest rate on these bonds never changes and is set when the security is purchased.

When you buy and hold, you need not be too concerned about the impact of interest rates on a bond's price or market value.

In fact, if inflation rises to the same level as the interest rate on my bond (3 %), then I am not receiving any real return on my investment because prices are going up at the same rate as my yield.

As the interest rate on a bond increases, the value of the underlying bond falls in value.

Rather than selecting two particular maturities, one can also consider more broadly the overall shape of the yield curve, which plots the interest rates on bonds of different maturities.

As of the writing of this article, U.S. stocks are near all - time highs and interest rates on bonds are near all time lows.

When interest rates go up, bond prices fall in order to have the effect of equalizing the interest rate on the bond with prevailing rates, and vice versa.

Don't look now but interest rates on bonds have started to creep up in recent days.