Currency impact can be managed by hedging local currencies back into U.S. dollar, allowing investors to potentially earn local market yields and take advantage of potential
local bond price appreciation, with less currency fluctuations.
Not exact matches
As usual, the development of
local currency sovereign
bond markets has helped by providing a benchmark for
pricing.
Prices on the government's benchmark
bonds due 2033 climbed to 117.6 cents on the dollar while yields on
local - law
bonds due 2017 declined to 6.38 percent.
These models are currently used by the insurance industry in underwriting flood and wind insurance products, by the finance industry in
pricing catastrophe
bonds, and by
local officials in coastal communities in preparing for and responding to hurricanes and other coastal storms.
The stars aligned in spectacular fashion for the municipal
bond market in 2014: Low supply amid solid demand, improving fiscal conditions among state and
local issuers, and a broad drop in interest rates (and rise in
bond prices) helped make munis one of the top - performing fixed income asset classes of the year.
Not only does this mark a new era of investment alternatives from traditional assets like stocks and
bonds for investors to use in order to protect against portfolio risks but as investors allocate to commodities in
local Asian markets, the futures growth may help standardize the quality of energy and food to make
prices less volatile and their environment cleaner.
Given recent
price and economic momentum, we are reasonably confident the bear market in EM assets — five years long for EM equities and currencies, and three years long for EM
local currency
bonds — came to an end in January 2016, and the early stages of a bull market look to be well underway.
We focused on the US and emerging markets, measuring returns for
bonds priced in dollars and in
local currencies.
There are some issues that are still to be worked out including how to
price these
bonds daily over time; how to use taxable conventions in a state and
local municipal tax exempt
bond framework and whether BABs will be sold after 2010.
Global
bonds can offer different yields and
prices than U.S.
bonds, depending on
local interest rates and economic conditions.
These models are currently used by the insurance industry in underwriting flood and wind insurance products, by the finance industry in
pricing catastrophe
bonds, and by
local officials in coastal communities in preparing for and responding to hurricanes and other coastal storms.