Sentences with phrase «long as the bond»

Of course, if you hold individual bonds to maturity, you may be able to ride out price fluctuations, knowing that as long as the bond issuer doesn't default, you will get your principal back at maturity and interest payments along the way.

They are activated by and develop relationships with people that have a certain aptitude, called Drivers, and the pairing of the two can be devastating so long as the bond between them is strong.

Of course, if you hold individual bonds to maturity, you may be able to ride out price fluctuations, knowing that as long as the bond issuer doesn't default, you will get your principal back at maturity and interest payments along the way.

As long as bonds are held until maturity, the investor does not have to worry about the day to day price changes in the bond.

You will receive half of that amount, that is, $ 36.25, twice a year, for as long as the bond remains outstanding.

As long as the bond issuer makes interest payments and the maturity value of the bond, there shouldn't be any problem.

Others might answer that, as long as the bonds and guaranteed investment certificates have identical yields, there's no difference.

In general, many bond and bond funds are considered to be lower risk because, for the most part, a bond holder will receive the principal on the bond as long as the bond is held to maturity.

As long as an I Bond has a fixed rate greater than zero, an I Bond will always increase in real value before taxes.

Not exact matches

The two most northern countries of North America have had a unique economic bond for as long as anyone can remember.

When you own a bond mutual fund, you don't actually own a bond — which will continue to pay a coupon so long as the issuer isn't in default — you just own a share of the fund, which is comprised of lots of bonds and sometimes other things.

One line of thinking now is that the central bank may opt to combine the two programs and buy longer - dated bonds more aggressively, then set as its new target the total balance of bond holdings or the size of its balance sheet, the sources said.

Investing in the bonds means that as long as Tesla is worth about a quarter of its current value, «We're guaranteed not to lose money,» Palihapitiya explained.

Global bonds went on a wild rollercoaster ride last week, with the price swings being particularly abrupt in the U.S. and German markets, which have long been viewed as the safest and most liquid in the world.

At some point, investors who are conflating high - yielding consumer staples stocks with bonds or who are taking interest rate risk in long - dated Treasurys will see drawdowns as well.

According to Traxler, entrepreneurs still view bond financing as it was prior to tax legislation in 1986 and before the mini-bond concept: a long, costly process demanding the deployment of a full set of legal and tax advisors to handle the transaction.

The higher bond yields go, the more pension funds will buy as they look to lock in long - term income streams to meet their liabilities.

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.

Long - term interest rates could rise abruptly, as bond prices fall.

Here's the best part, at least for owners: As long as the $ 4 million is reinvested in what's called «qualified replacement property» — stock in U.S. companies or bonds, but not passive investments like mutual funds — an owner can defer paying what might otherwise be a hefty capital gains tax liabilitAs long as the $ 4 million is reinvested in what's called «qualified replacement property» — stock in U.S. companies or bonds, but not passive investments like mutual funds — an owner can defer paying what might otherwise be a hefty capital gains tax liabilitas the $ 4 million is reinvested in what's called «qualified replacement property» — stock in U.S. companies or bonds, but not passive investments like mutual funds — an owner can defer paying what might otherwise be a hefty capital gains tax liability.

According to Morningstar Direct, $ 59 billion is invested in long - term bond funds and exchange - traded funds (defined as portfolios with average durations above six years).

While U.S. savings bonds have lost popularity as a means of long - term savings due to the low interest rates they currently earn, some retirees have been holding on to bonds that were issued when rates were higher.

Looking at a simple asset allocation, a theoretical allocation to long - dated U.S. bonds (+20 years) fluctuates from as low as 3 % to as high as 25 % based on changes to the risk model, i.e. correlation of different asset classes.

When stock - bond correlations are presumed to be negative, portfolio construction favors traditional Treasury bonds — particularly long - dated ones — as a good source of both carry and diversification.

Being short, especially at record prices on bonds, doesn't have the same danger as being long.

Bonds have historically had little correlation to equities except in market crisis situations, so creating a portfolio of both equities and bonds makes a whole lot of sense as a long - term inveBonds have historically had little correlation to equities except in market crisis situations, so creating a portfolio of both equities and bonds makes a whole lot of sense as a long - term invebonds makes a whole lot of sense as a long - term investor.

This increase in bond ownership can push prices up, and further depress long - term yields, which fall as prices rise.

Although the retailers have been negotiating with bond holders, who have accepted significant discounts and offered longer terms, the basic financials are enough for Moody's to rate 13.5 percent of the retailers it follows as a Ca or Caa credit risk.

Certainly, it offers an attractive level for longer - term investors such as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to buy bonds rather than equities.

We said long - term bond prices could fall as much as 10 %.

As recently as December they were still long 10 - year bondAs recently as December they were still long 10 - year bondas December they were still long 10 - year bonds.

Yield to maturity is considered a long - term bond yield, but is expressed as an annual rate.

In fact, long - term bonds and preferred shares have characteristics that make them a very useful asset class for retirement portfolios, as I explain in my essay Security of Income vs. Security of Principal.

So more than twice as many decade - long stretches historically have shown negative real returns in bonds than stocks.

As a result, the PH&N Total Return Bond Fund, a fund that seeks to provide long - term growth and a consistent level of income, was a preferred choice this past month.»

There is no doubt that, based on pure, cold, logical data, stocks are the single best long - term performing asset class for disciplined investors who are not swayed by emotion, focus on earnings and dividends, and never pay too much for a stock, often as measured on a conservative beginning earnings yield relative to the Treasury bond yield basis.

This is especially true for those investors who look to their bond funds as a source of long - term income.

As Russ Koesterich points out, cash typically produces lower returns than stocks or bonds, and once you invest for both inflation and taxes, average long - term rates are negative.

Although commercial banks mostly rely on capital from deposits from customers, such banks may issue notes and bonds as long - term capital resources.

In the fixed - income arena, longer - duration1 bonds tend to be more negatively impacted when interest rates move higher as compared with shorter - duration fixed income securities.

We view long - term government bonds as useful diversifiers against volatility and equity market selloffs sparked by such shocks.

After a blowout 2014 when long bonds were up nearly 30 %, they're up another 3 % in the first week of the new year as interest rates continue to drop.

With extraordinary low interest rates and modest inflation, investing in long - term bonds to capture as much yield as possible may seem like a smart move.

The earnings yield on enormous blue - chip stocks such as Wal - Mart, which had little chance to grow at historical rates due to sheer size, was a paltry 2.54 % compared to the 5.49 % you could get holding long - term Treasury bonds.

Consequently, the price of a long - term bond would drop significantly as compared to the price of a short - term bond.

Long - term bond yields continue to extend their hostile upward trend, while other market internals continue to diverge as well.

We see the vote to leave the EU as a negative risk event, which is likely to support the bid for longer - dated government bonds and for a rate cut in the UK.

As long as the BoC remains reluctant to raise rates, history would suggest that the correlation between stocks and bonds is likely to remain negativAs long as the BoC remains reluctant to raise rates, history would suggest that the correlation between stocks and bonds is likely to remain negativas the BoC remains reluctant to raise rates, history would suggest that the correlation between stocks and bonds is likely to remain negative.

We assumed that in each period a 30 - year bond is issued at prevailing interest rates (long - term government bond plus 1 %) and that amount is invested for the next 30 years in a portfolio of large - cap stocks while paying off the bond as an amortized loan (as if it were a mortgage).

The effect of low interest rates is unimportant as long as the portfolio carries minimal cash and bond exposure.