Here
the investor states the rate or yield that is acceptable.
Not exact matches
That has prompted
investors to take another look at the widening interest
rate differential trends between the United
States and Europe which hit the highest in nearly 30 years at 236 basis points last week, and protracted weakness in the greenback.
He told bond
investors and currency traders that they were mistaken in their belief that Canada would track the United
States, where the central bank has raised interest
rates twice since December.
To counteract those forces, the Bank of Canada could have cut interest
rates, opening up a gap between the cost of money in Canada and the United
States, making U.S. assets relatively more attractive to fixed - income
investors.
This week brings a wide range of data on the
state of the U.S. economy, while
investors will also have multiple opportunities to try to gain further insight into the thinking of Fed officials on future interest
rate decisions.
With
rates at near zero in the United
States, and negative in Japan and Europe, the differential is a powerful lure for carry trades, in which
investors borrow at ultra-low
rates in currencies such as yen or sterling and buy high - yielding assets such as the kiwi.
But he shows more concern with
rates of return (for both
investors and the
state) than with political dogma.
California's bonds are
rated lower than those of any other
state, but are still investment grade, and
investors are still buying.
the percentage of return an
investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage
rate; yield
stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close
On the demand side, individual
investors and mutual funds are still buyers, as individuals experienced a somewhat modest tax cut overall (the top income tax
rate fell from 39.6 % to 37 %, for example) and many are looking for protection from the tax man now that the federal deduction for
state and local taxes is capped at $ 10,000.
Bond Funds with Large U.S. Treasuries allocations are considered to be Medium Tax Efficiency for
investors who are subject to high
rates of
state / local tax on investment income; for other
investors, these bond funds should be considered Lower Tax Efficiency.
In the United
States, March retail sales, industrial production and housing figures all disappointed, and the persistent softness in U.S. economic data means the United
States will struggle to hit the 3 % annual growth
rate that
investors had expected at the beginning of the year.
These features include the availability of physical cash and a behavioral aversion by some money market
investors to investing at negative
rates, and also encompass certain unique features of money markets in the United
States, such as legal and regulatory incentives applicable to money market mutual funds and the ability of the government - sponsored enterprises to leave unremunerated deposits at the Federal Reserve.23
With interest
rates in the United
States at record lows and
rates in other developed markets increasingly in negative territory,
investors may want to look beyond traditional markets in search of yield.
Moody's
Investors Service has lowered its bond
rating for Michigan
State University, meaning the university will no longer get the best interest...
But first and foremost, the
state of the economy largely determines Fed actions and
investor behavior and therefore
rates.
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.
«It isn't unusual for an angel
investor to expect a
rate of return that equals 10 times their original investment inside the first 5 — 7 years,»
states Murray Newlands with Startup Grind.
Sensient (NYSE: SXT)
Rating Upgrade In a report shared with
investors and clients on Monday morning, Gabelli
stated it was upgrading Sensient (NYSE: SXT) stock from a Hold to a Buy.
These involve the
investor borrowing at the short end of the yield curve, particularly in those countries where
rates have been very low, such as the United
States, Japan and Switzerland, and investing either further out along the yield curve or in countries where interest
rates have been relatively high, such as Australia and the United Kingdom.
The
state's latest downgrades came in June when Fitch
Ratings and Moody's
Investors Service downgraded Illinois to A - and A3 respectively.
With respect to the more common residential mortgage REITs,
investors are worried and unsure about how much rising interest
rates in the United
States will impact profits.
CHICAGO (Reuters)- Michigan
State University's heightened financial risk in the wake of a sex abuse scandal involving former USA Gymnastics doctor Larry Nassar led Moody's
Investors Service to cut the school's credit
rating to Aa2 from Aa1 on Thursday.
That could push the Federal Reserve to increase interest
rates faster than anticipated, which is part of what is making United
States stock
investors nervous.
The company
stated in its most recent
investor presentation that it is committed to maintaining its investment grade
rating and access to the commercial paper market.
Mixed with Maryland's scarcity of large parcels and access to a large population within a day's drive, it makes the
state an attractive place for
investors seeking steady returns higher than they can find in low - interest
rate bonds.
Michigan
State University's heightened financial risk in the wake of a sex abuse scandal involving former USA Gymnastics doctor Larry Nassar led Moody's
Investors Service to cut the school's credit
rating to Aa2 from Aa1 on Thursday.
Finally, we created a composite rank of each
state's credit
ratings from Standard & Poor's and Moody's
Investor Service.
The United
States tax code is so backward that billionaire
investor Warren Buffett pays only 17 percent in income taxes, a
rate even lower than that of his secretary.
Moody's
Investors Service announced it would review «for possible downgrade» the credit
ratings of five
states, including Maryland, that could be hit particularly hard if Congress fails to raise the nation's debt limit by the Aug. 2 deadline and defaults on its financial obligations.
I also think it would be judicious for
investors to consider protection from potential euro weakness, particularly at a time when interest
rates in the United
States seem likely to rise and the ECB's QE program is underway and might even be accelerated if need be.
In addition,
investors are waiting for a future United
States Federal Reserve interest
rate decision.
Consequently,
investors in the US Dollar can plainly see that the interest
rate spread between the United
States and other countries will begin to narrow rather dramatically within the next 12 to 18 months.
By the same token, if the central bank reduces the interest
rate to zero,
investors will shift portfolios to stocks, everyone will feel richer, and consumers will spend more «which is more or less what happened during the past two quarters of putative recovery in the United
States.
New York
state is
rated Aa2 by Moody's
Investors Service and AA by Standard & Poor's, the third highest rankings for both credit agencies.
Such bonds function as an alternative to direct public financing of housing projects: Since interest income on PABs is tax exempt,
investors are willing to buy them at very low interest
rates, and this makes it relatively affordable for
states, municipalities, and nonprofits to finance housing (and hospitals, infrastructure, and other public works) through the private capital market.
While the change doesn't mean the actual
rating has improved, it does mean that, with a better outlook,
investors buying
state general obligation bonds can do so with a bit more confidence.
They find that the higher the percentage of public employee who are unionized, the greater risk
investors see of the
state defaulting on its bonds, resulting in higher interest
rates
Only nine other school districts in the
state are currently
rated higher than District 191 by Moody's
Investor Services.
Thanks to lackluster global growth, and rock - bottom interest
rates in the United
States — and even negative
rates in other parts of the world —
investors face the choice of either accepting lower income or increasing risk in their bond portfolios in the search for yield.
For serious
investors looking for maximum versatility online, Fidelity offers a wide range of benefits that can work for those who are looking for the best
rates, great commissions, a wealth of research, a solid level of customer service, and
state of the art tools that get the job done.
For instance, if an
investor pays
state tax at an effective 5 %
rate (after taking into account the federal deduction allowed for such
state taxes) and the
state taxes out - of -
state bonds (but not in -
state bonds), an in -
state bond bearing a 6 % interest
rate is the equivalent of a 6.32 % out - of -
state bond.
the percentage of return an
investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage
rate; yield
stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close
If treasury
rates in the United
States weren't at one to two but were six or eight, we could make a good case for perhaps there's times when you would want to make profits from falling interest
rates but right now I think what our
investors are looking for is to have a decent yield and be protected from their fear of rising interest
rates, so until we get out of this context, I think that it's unlikely that we will deviate much from a two or three year duration portfolio.
Investors began to worry this could erode the United
States» cherished triple - A sovereign credit
rating when Standard and Poors's on May 21 revised its outlook for Britain's triple - A status to negative from stable, blaming higher government debt.
State securities regulators have led the national effort to give
investors access to billions of dollars of their funds, which have been frozen in the auction
rate securities markets.
As
investor complaints to
states increased, the North American Securities Administrators Association announced in April 2008 the formation of a multi-state Task Force, comprised of securities regulators in 12
states, to investigate whether the nation's prominent Wall Street firms had systematically misled
investors when placing them in auction
rate securities.
State Securities Regulators Remind Auction
Rate Securities
Investors to Contact Firms About Buyback Offers, November 10, 2008
Wells Fargo Investments LLC:
State Securities Regulators Announce $ 1.3 Billion Settlement with Wells Fargo
Investors in Auction
Rate Securities Investigations, November 18, 2009
In markets for government debt, favoring the a priori safe bet of high - debt - issuer countries, such as the United
States, Japan, and developed European nations, can be far riskier to an
investor's wealth than interest -
rate volatility or credit
ratings may suggest.