Sentences with phrase «is the short term bonds»

If one is not already in bonds, is the short term bonds the place for today money, in preference to CDs or other fixed, etc.?

My only questionable part of my emergency fund is the short term bond fund.

As they are short term bonds they are impacted less by rising interest rates.

Not exact matches

While the short - term advantage is a stronger balance sheet, the long - term impact is a degradation of the bond between employer and employee.

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

These assets are all riskier, in the short run, than plain - vanilla bonds, but a retiree with a long - term time horizon can't afford to shun the rewards that come with those risks.

She said those include how much you have in cash for short - term expenses, the way your assets are allocated between stocks and bonds, as well as your spending behavior.

Sure, target - date plans are conservative from a wealth perspective because you typically start off with more stock and slowly unload it, which results in purchasing more short - term bonds as retirement looms.

The caveat with this method is that bonds and annuities typically come with long - term interest rates, and from a wealth perspective, that's more dangerous than short - term ones.

Alternatively, it's best to shorten the average term to maturity of your bond portfolio as interest rates enter into a rising cycle, because the shorter the term, the less their price will be affected.

That money, which is mostly held in short - term U.S. bonds and money market funds, was kept in Ireland for years, until an investigation by the European Union into whether the company failed to pay taxes caused it to move its holdings to Jersey, a small island off the coast of Normandy that rarely taxes corporations.

So, putting the two together, we want to own short - term high - coupon bonds when rates are rising, and low - coupon long - term bonds when rates are trending down.

But the simple fact is she just doesn't know, because she doesn't know when the effect of a higher coupon has a more powerful effect on a bond's price than does a shorter term.

For instance, under recent scrutiny are negotiable certificates of deposits (NCD), a kind of short - term bond, and niche products like perpetual notes, a long - term debt instrument that can be listed as equity rather than debt on balance sheets.

Investment - grade corporates pay about two percentage points more than short - term government bonds, and they're less risky than they used to be.

His expectation is that the overall volatility of a portfolio 30 percent in short - term bonds and 70 percent in stocks is going to be on par with one that is 40 percent invested in a fund tracking the Bloomberg Barclays U.S. Aggregate index and 60 percent in stocks.

Already, the bond yield curve, which measures the difference between short - term interest rates and long one, has been rising.

Its largest holding was the Vanguard Short - Term Bond ETF, which has an expense ratio of.07 %, or $ 7 per $ 10,000 invested.

That market participants have finally come to terms with the Federal Reserve's normalization plans is just one of the reasons short - term bonds are finally looking attractive again after years in the doldrums, as we explain in our new Fixed income strategy A mighty (tail) wind.

By secular reflation, we mean at least a decade in which short - and long - term interest rates stay habitually below nominal GDP growth and high grade bonds are not really bonds any more: delivering trend returns that are close to zero or even negative.

Jeff zooms in on why short - term bonds are finally looking attractive again after years in the doldrums.

Short - term bonds are looking attractive again after years of near - zero yields.

Asset allocation The way an investment portfolio is divided among the broader asset classes of stocks, bonds, and short - term reserves.

The other big risk in bonds, and long maturity bonds in particular, is temptation in the short - term.

All of our age - based options are diversified among stock, bond, and cash (short - term reserve) investments, in proportions that meet your college timeline.

i should buy short term gov» bonds with different maturity time, am i right?

Interest rate expectations are constantly changing over the short - term but over longer periods bond returns are more or less based on math.

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.

For bond investors with a short - term investment horizon, it is absolutely critical to think about rising interest rates.

Consider this simple example with a three - instrument portfolio comprised of a S&P 500 ETF, a long - term bond ETF and a cash - proxy ETF.1 Based on daily returns since 2010, the annualized volatility on the cash proxy (a short - term bond ETF) is effectively zero, compared to 16 % and 15 % for the stock and bond ETFs.

T - bills are shorter - term investments than Treasury bonds and are typically sold in terms that range from a few days to 52 weeks.

Yes, cheap money polices did help stabilize a reeling housing sector, that shouldn't be dismissed, but what else does the Fed have to show for near - zero short term interest rates and the fortune spent lowering longer term rates through its bond buying program?

Fidelity's Julian Potenza seconded Darda's emphasis of muni bonds, saying «investors should consider keeping the portion of their fixed - income portfolio that is currently earmarked for liquidity relatively short, in terms of duration.»

To which my response is this — if you're willing to ignore short - term losses in individual bonds, why can't you ignore short - term losses in bond funds?

«We're very happy with an 18 percent which is achieved in a less volatile, pretty conservative manner,» said Carlson, noting that the firm focuses on short - term, high - yield bonds.

The institutions are not only using the money to meet their own short - term financing needs, they are also borrowing additional money to purchase the bonds of troubled countries and earn the spread between the yields on those bonds and the much lower rate the ECB is charging them for money.

By and large, most of our clients carry much higher levels of cash and short - term bonds and are much more diversified than they were prior to 2008.

Although this rally can definitely continue over the short - term, I think over the long - term intermediate bonds are probably a better bet for a lower risk portion of the portfolio.

If long bond inflation concerns are indeed correct (which I believe they are), the Fed will have to ratchet short term rates at a faster pace which may re-invert the yield curve.

Short - term Treasury yields have declined, but other yield classes including utilities, long - term bonds, and stock yields are in hostile uptrends.

iShares S&P ® / TSX ® 60 Index Fund («XIU»), iShares S&P / TSX Capped Composite Index Fund («XIC»), iShares S&P / TSX Completion Index Fund («XMD»), iShares S&P / TSX SmallCap Index Fund («XCS»), iShares S&P / TSX Capped Energy Index Fund («XEG»), iShares S&P / TSX Capped Financials Index Fund («XFN»), iShares S&P / TSX Global Gold Index Fund («XGD»), iShares S&P / TSX Capped Information Technology Index Fund («XIT»), iShares S&P / TSX Capped REIT Index Fund («XRE»), iShares S&P / TSX Capped Materials Index Fund («XMA»), iShares Diversified Monthly Income Fund («XTR»), iShares S&P 500 Index Fund (CAD - Hedged)(«XSP»), iShares Jantzi Social Index Fund («XEN»), iShares Dow Jones Select Dividend Index Fund («XDV»), iShares Dow Jones Canada Select Growth Index Fund («XCG»), iShares Dow Jones Canada Select Value Index Fund («XCV»), iShares DEX Universe Bond Index Fund («XBB»), iShares DEX Short Term Bond Index Fund («XSB»), iShares DEX Real Return Bond Index Fund («XRB»), iShares DEX Long Term Bond Index Fund («XLB»), iShares DEX All Government Bond Index Fund («XGB»), and iShares DEX All Corporate Bond Index Fund («XCB»), iShares MSCI EAFE ® Index Fund (CAD - Hedged)(«XIN»), iShares Russell 2000 ® Index Fund (CAD - Hedged)(«XSU»), iShares Conservative Core Portfolio Builder Fund («XCR»), iShares Growth Core Portfolio Builder Fund («XGR»), iShares Global Completion Portfolio Builder Fund («XGC»), iShares Alternatives Completion Portfolio Builder Fund («XAL»), iShares MSCI Emerging Markets Index Fund («XEM») and iShares MSCI World Index Fund («XWD»), iShares MSCI Brazil Index Fund («XBZ»), iShares China Index Fund («XCH»), iShares S&P CNX Nifty India Index Fund («XID»), iShares S&P Latin America 40 Index Fund («XLA»), iShares U.S. High Yield Bond Index Fund (CAD - Hedged)(«XHY»), iShares U.S. IG Corporate Bond Index Fund (CAD - Hedged)(«XIG»), iShares DEX HYBrid Bond Index Fund («XHB»), iShares S&P / TSX North American Preferred Stock Index Fund (CAD - Hedged)(«XPF»), iShares S&P / TSX Equity Income Index Fund («XEI»), iShares S&P / TSX Capped Consumer Staples Index Fund («XST»), iShares Capped Utilities Index Fund («XUT»), iShares S&P / TSX Global Base Metals Index Fund («XBM»), iShares S&P Global Healthcare Index Fund (CAD - Hedged)(«XHC»), iShares NASDAQ 100 Index Fund (CAD - Hedged)(«XQQ») and iShares J.P. Morgan USD Emerging Markets Bond Index Fund (CAD - Hedged)(«XEB»)(collectively, the «Funds») may or may not be suitable for all investors.

One is legitimate — every year in which short - term interest rates are expected to be zero instead of say, a typical 4 %, should reasonably warrant a 4 % valuation premium in stocks and bonds, over and above run - of - the - mill historical norms (one can demonstrate this using any discounted cash flow approach).

The rates that have responded most significantly to lower borrowing costs are short - term loans for financial speculation, above all for derivatives and related buying or selling of stocks and bonds on margin — enormous gambles on which way the dollar, the stock market and interest rates may go.

Generally, among asset classes, stocks are more volatile than bonds or short - term instruments and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.

Over the past year, the bond yield curve has been positive but flattening (short - term yields remained lower than long - term yields, but the differential has narrowed).

So if investors expect short - term rates to be zero for another 4 years, it would be reasonable for stocks and bonds to be about 16 % higher than historical valuation norms.

Should the yield curve steepen, with 10 - year bond yields moving above 2 % while short - term rates are anchored near zero, it would imply that a longer term inflation fear is re-entering the market.

But if you're holding Bond ETFs such as iShares XBB (mid-term maturities) or XSB (short - term maturities), then the prices of these ETFs will fall when rates go up.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

But cash isn't such a bad thing in a rising rate environment as the yield pick up rather quickly on money market accounts or you can roll some of that over into higher yielding short - term bonds.