Sentences with phrase «interest yield return»

Equity - indexed annuities are distinguished by the interest yield return being partially based on an equities index, such as the S&P 500 index.

Not exact matches

If interest rates rise and push that risk - free rate of return higher, then those dividend stocks and high - yield bonds are vulnerable.

«It's the yield paradox, where cash returns appear very strong going forward, yet capital losses could offset that if interest rates start climbing.»

If mortgage interest rates were higher, paying down this debt would make more sense, but with rates at about 4 percent, investing that money could yield a higher rate of return.

And with a growing body of research that suggests employee happiness yields a promising return on investment, many employers are interested in perking up their workers with more than just K - Cup coffee.

We anticipate higher interest rates across the yield curve as North American central banks normalise monetary policy amid slowly returning inflation.

All told, we see another coupon - driven year for high yield with total returns of about 6 % possible as spreads tighten in line with anticipated modest increases in interest rates.

More interesting is the return on the BofA Merrill Lynch U.S. High Yield Energy Bond index, which has a whopping 18.26 % return YTD, but over the past year still has a negative 15.65 % return.

Depressed interest rates were typically associated with weak market outcomes over the following decade, largely because investors reacted to depressed interest rates with yield - seeking speculation - driving valuations up and driving subsequent prospective returns down.

What's actually true is that yield - seeking speculation in response to quantitative easing and zero - interest rate policies has elevated current valuations, giving investors returns (at least on paper) that they would have waited many more years to accrue.

The «search for yield», i.e. for better return on financial investments than the declining interest rate, thus led to the series of bubbles & bursts: deregulated savings & loans (immediately), high - tech stocks (late 90's), mortgage derivatives — > house prices (2000's).

High yield (non-investment grade) bonds are from issuers that are considered to be at greater risk of not paying interest and / or returning principal at maturity.

Yields can be measured in a number of ways, including coupon yield, or the stated interest rate of the bond, and yield to maturity, which is the total rate of return when an investor holds the bond to maturity.

Tags: alpha, Institutional Investment, interest rates, Investing, Investor Relations, risk, risk - free rate of return, Treasuries, Warren Buffett, yield

The downside for investors, if a high yield bond is called, is the loss of interest return for the years remaining in the life of the bond.

You may also be interested in considering High Yield Bond ETFs High Yield Real Estate Investment Trusts (REITs) High Yield Closed End Funds High Yield Utility Stock ETFs Return from High Yield ETFs to More on High Yield Passive Income

#TradeElite A7 — I suppose if your projections have you yielding more return than the higher interest it would still make sense; however, projections wouldn't be enough to mitigate the risk of #toohigh interest so, actual revenues, i.e. a pilot approach in - market, is recommended https://t.co/IigZtOkpxC

Given term premium suppression (via QE) reduced volatility and induced investors to buy risky assets to boost returns, a sustained rise in long - term interest rates would give investors more options to achieve yield targets, thus making risk assets appear less attractive and ultimately erode demands for yield and tighten financial conditions.

It's very artificial to have very very low inflation rates and I fear prices become terribly distorted — triggering a search for higher yielding shares — all sought as you can not get returns on [low] interest rates.

Short term interest rates remain near zero, 10 - year bond yields have declined below 2 %, and our estimate of 10 - year S&P 500 total returns has declined to just 1.4 % (see Ockham's Razor and the Market Cycle for the arithmetic behind these historically - reliable estimates).

Bond markets are certainly displaying a lot of enthusiasm at the moment — and it doesn't matter which bonds one looks at, as the famous «hunt for yield» continues to obliterate interest returns across the board like a steamroller.

While the prospect of higher interest rates will keep investors on edge, it's not like we're returning to double - digit levels or the Fed is moving its terminal rate.So even the uptick in ten - year yields to 3 % or even 3.25 % is unlikely to kill the equity market rally as the benefits from fiscal stimulus should continue to feed through the markets.

One factor supporting the Australian dollar over the past couple of years has been that interest rates right across the yield curve in Australia, and perceived returns on other assets, have been higher than those in a number of other countries, particularly those which experienced a recession and a collapse of share prices in the early part of this decade.

Importantly, when a preferred share is trading at a high current yield relative to the market yield, the investor receives a measure of protection from the impact of rising interest rates (or, if we're focused on real returns, the impact of rising inflation).

If you're enjoying this low - interest loan, it may make more sense to invest that lump sum in an investment that will yield more returns than you're paying to borrow for your home (especially when factoring in tax benefits).

The expense cap is a voluntary limit on total fund operating expenses (exclusive of any acquired fund fees and expenses, performance fees, extraordinary expenses, taxes, brokerage commissions and interest) that U.S. Global Investors, Inc. can modify or terminate at any time, which may lower a fund's yield or return.

Essentially, lenders want to make sure that you're using the funds for a good investment that will yield enough return for you to pay back the full loan and interest on their set schedule.

Dividend Yield is the annual rate of return of an investment paid in dividends or interest, expressed as a percentage.

In Strategic Total Return, we continue to carry an average duration of about 3 years in Treasuries, where the prospect of further credit strains remains favorable for Treasuries, but where yields are already so depressed that small upward blips in yield can quickly wipe out a year or two of prospective interest.

The expense ratio after waivers is a voluntary limit on total fund operating expenses (exclusive of any acquired fund fees and expenses, performance fees, taxes, brokerage commissions and interest) that U.S. Global Investors, Inc. can modify or terminate at any time, which may lower a fund's yield or return.

In bond funds, there are several categories right from Liquid Funds (as a surrogate to money lying in your savings account) to Short Term Bond Funds (which try to balance interest rate risk and yield) to Long term / Dynamic Bond Funds (which essentially try to deliver returns by taking on interest rate risk).

Investors are willing to accept lower returns on bonds in exchange for safety, but near - zero interest rate levels have traditional bondholders seeking yield elsewhere.

The portfolio's characteristics should make it similar to high - yield bonds, offering the chance for some thrills and interest rate insulation plus high single - digit returns.

To return to our example, if the $ 1,000 bond yielded 2.5 % it would generate $ 25 in annual interest, resulting in a tax bill of just $ 11.25.

This means the 52bp pick up in yield that one gets today would result in a lower total return later, as bond prices would decrease in a rising interest rate environment.

For a direct CD (purchased directly from a bank or credit union) in which interest is reinvested, the annualized return will exactly equal the annual percentage yield (APY), so we know in advance the annualized return just by looking at the APY.

For taxable accounts, I'll take the slightly lower rate at Ally in return for the lower cost to break the CD and reinvest in a higher - yielding CD if interest rates increase significantly in the next few years.

Yields are also higher for the S&P U.S. Issued High Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate yield corporate debt.

Peer - to - peer lending standards are significantly more lenient than banks», and these loans» interest rates are usually lower than those offered by traditional lenders, but the rates will likely exceed those on high - yield savings accounts, so you stand to make a much higher return with peer - to - peer lending.

High - yield savings accounts can have initial interest rates that make them quite attractive, and they offer returns that are higher than regular savings accounts.

To attract demand, the price of the pre-existing zero - coupon bond would have to decrease enough to match the same return yielded by prevailing interest rates.

Always interesting, Gross mentioned that in order to generate a level of return equal to the 7.5 % return bonds have delivered over the past 40 years, yields would need to drop to negative 17 %.

Navy Federal's rates include stellar 3 % returns on 12 - month Special EasyStart Certificates and annual percentage yields of 0.35 % or more on one of its interest checking accounts with a $ 1,500 average daily balance.

The downside for investors, if a high yield bond is called, is the loss of interest return for the years remaining in the life of the bond.

Navy Federal's rates include 3 % returns on 12 - month Special EasyStart Certificates and annual percentage yields of 0.35 % or more on one of its interest checking accounts with a $ 1,500 average daily balance.

While the portfolio of high yield bonds may offer additional return potential, high yield bonds are subject to substantial interest rate risk.

And while rising rates are bad for bonds and bond funds in the short - term, climbing yields can actually boost returns on a diversified portfolio of bonds over the long haul, as interest income and proceeds from maturing bonds are re-invested at higher rates.

Market Risk & ETFs, Market Returns & ETFs, High Yield Bond ETFs, Treasury Bond ETFs, ETFs & Interest Rates, ETF Allocations

Yield to maturity considers the bond's current market price, par value, coupon interest rate, and time to maturity in order to calculate a bond's return.

Instead of a 2 - per - cent return in «high - interest» savings (a paltry yield that barely keeps pace with inflation), it may be possible to earn 5 per cent or more in diversified dividend - paying mutual funds.