Sentences with phrase «less bond buyers»

But the worse the market gets, the less bond buyers will discern between good and bad apples, Fridson predicts.

Not exact matches

Typically, higher interest rates make existing bonds less attractive to buyers, since they can get new notes at loftier yields.

Post-financial market regulations (read: Dodd - Frank) have required banks and other «systemically important financial institutions» to hold more cash on their balance sheet, creating less bond inventory on balance sheets — fewer potential buyers, fewer potential sellers — if portfolio managers are forced to meet client redemptions quickly and en masse.

As rates creep higher overseas in response to the gradual removal of policy accommodation in Europe and Asia, foreign buyers will have less incentive to hunt for yield in U.S. bonds.

Participation from directional buyers and sellers of bonds should result in greater market inefficiencies between cash bonds and futures, benefiting less directional relative value trading.

The higher risk bonds, in order to attract lenders (buyers), pay a higher return but are less reliable.

A less accommodative Fed removes one prop from the bond market, but the reduction in purchases is dwarfed by the likely increase in global savings, i.e. there are plenty of private sector buyers looking to hedge long - term liabilities.

Short and intermediate corporate bonds came under pressure throughout the first quarter, due to less demand from corporate buyers, as a result of repatriation provisions in the US tax reform.

The market value of a bond changes over time as it becomes more or less attractive to potential buyers.

The higher risk bonds, in order to attract lenders (buyers), pay a higher return but are less reliable.

The OID may be seen as a form of interest, since the buyer receives the face value of the bond even though he paid less than par when it was purchased.

In other words, if the buyer's bid was accepted, he would pay less than the current bond holder did when the bond was first issued, because prevailing interest rates are now higher than 5 % on similar tax - exempt bonds.

Large index ETFs, which have real - time net asset values (NAVs), have not helped this pricing problem in fixed income but, in parts of the fixed income market where there is less liquidity (such as high yield bonds), sourcing issues can be more difficult — particularly in a market sell - off where buyers may not be readily available with sufficient capacity to take on bond inventory.

Less liquid corporate and municipal bonds can have wider spreads because the pool of potential buyers is smaller.

At the time of purchase, the buyer must recognize whether the bond is subject to de minimis because the after - tax return could be substantially less than expected.

Less demand equals a higher yield and lower bond prices to attract buyers.

In this case, the discount bond (from above) will be worth less to the buyer, as shown below.

(After all, how much lower can they go when some bonds pay «negative interest» — at maturity, buyers get back less than they paid!)