Sentences with phrase «long bonds have»

Do not conclude that because long bonds have a higher duration that they will experience much larger changes in value when Central Bank Rates rise or fall.

Long bonds have seen strength across asset classes in 2017 and municipal bonds are going along as this index has a 9.8 % total return so far in 2017.

Rising interest rates tend to lower the price of bonds, and the longer the bond has until it matures the greater the decline in its price.

A $ 4 move in the long bond would be significant enough — that is a top 5 move, but the shocker is seeing the 30 - year yield near 3.20 %.

There are times when long bonds would be an excellent choice.

The value of the long bond would be expected to change 8 % while the 5 year bond would change 6 %.

The longer the bond has to mature, the bigger the discount you will receive.

Other countries like Britain, long bonds all had a maturity of infinity.

The long bond has had a few scares, but has confounded market participants by hanging around in a range of 2.5 % - 4.0 % over the last two years.

Not exact matches

That data raised a fresh round of questions about how the Federal Reserve will proceed on further cutting back on its massive monthly bond purchases, which have kept long - term rates low and encouraged a strong rally on equity markets.

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

The bonds of iHeartMedia have long been in the basket of «distressed debt,» meaning their prices have fallen so far to where their yields are at least 10 percentage points higher than equivalent Treasury yields.

REITs have long been popular with income - seeking investors in this era of miniscule government bond yields.

Low sovereign bond yields have long helped the government finance its debt, thus, higher yields would undermine the sustainability of its fiscal position, analysts said.

«If the BOJ were to ease policy, it would therefore be most natural for it to increase government debt purchases and target longer - dated bonds,» Kuroda said in a confirmation hearing in the lower house of parliament.

The easiest way for the central bank to ramp up the size of its balance sheet would be to buy longer - dated government bonds.

Such a shift would bring the central bank a step closer to making the purchase of longer - dated bonds a central part of policy and partly echoes Japan's five - year quantitative easing campaign that lasted until 2006, under which it aggressively pumped cash into the economy.

But, «the U.S. and the Bank of England have gone to more extremes because they have interest rates below the Bank of Canada's, and they've also been buying bonds to lower longer term interest rates,» Shenfeld added.

Still, combine the indications of the short - term bond market with today's 5 % GDP news and you get the sense that stock traders betting on low interest rates for longer periods of time may soon have to bail out.

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.

Essentially, we've spent 35 years watching yields decline, so investing in long - term bonds has proved quite profitable.

Expectations have grown that ECB policymakers may take another small step in exiting the bank's ultra-easy monetary policy after dropping a long - standing pledge to increase bond buying if needed at its meeting in March.

A survey last year by Mercer, a retirement and investment group, revealed that European pension funds would be inclined to raise their bond holdings when average long - term sovereign bond yields reached 2.8 percent.

Others have noted that if the Fed continues raising short - term rates while long - term rates remain stalled, it could turn the shape of the bond yield curve upside down, a typical signal of recession.

Butler: We could see interest rates moving up and this will have an impact [on] long bond investors.

That's dangerous for pension funds and other large institutional investors across the world, which have been loading up on bonds, and longer - term bonds to boot.

Long - term bond rates have risen about one percentage point since then, and that has caused bond values to fall.

U.S. long - term rates would spike, while investors in Canada would rush to the domestic fixed - income market, setting off a bond rally that would push Canadian yields down «substantially,» said Burleton.

Treasury bonds, which tend to have longer durations, now represent more than one - third of the index compared with 22 percent in 2007.

And corporations have spent the last decade issuing longer - term bonds to take advantage of low interest rates.

«Europe has a long, if occasionally somewhat troubled, history of being strongly engaged in global affairs — aid and development is a part of this,» Bond, a network of over 400 international development organizations and the U.K. Aid Network, said in a statement to CNBC this week.

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.

The bond market rally has endured for so long that many credit investors have become complacent.

If you have a longer timeframe, consider investing in stocks and bonds.

Still, corporate bond spreads have come up to around their historical average, providing impetus for institutional investors trying to claw out yield any way they can, even if it means an extraordinarily long - term commitment.

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

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

«Apple of course has huge amounts of cash, but... the cost of borrowing now is so unbelievably low that issuing long - term bonds... is actually a very smart thing,» Schwarzman said on CNBC.

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.

We would have preferred a different outcome... but the United States has a long - standing friendship with the United Kingdom and that very special bond will endure,» he said in a speech in Dublin.

Before long, your common interests may also have you bonding over workplace issues.

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.

Residential real estate had taken on a healthy pace in late 2012 and early 2013 but has slowed since the Federal Reserve started talking about reducing its monthly bond purchase, which helps keep long - term interest rates low.

Now, bond markets have a habit of having long, long, long cycles, 30, 35 years.

Investors have had a long time to digest the taper news: Their reaction to the Fed actually shrinking the size of its bond purchases is likely to be smaller than their reaction in anticipation of such a move.

The long - term implication is that investors and the public at large can have more trust in the security and liquidity of the U.S. Treasury bond market.

Interpreting the Ratio Let's say a company has long - term debt of $ 10 million in the form of a bond outstanding and equity of $ 10 million.

But long - term rates on mortgages and some other loans have jumped since May, when Bernanke first said the Fed might slow its bond buys later this year.

Progress in a few areas has been solid: slashing of bureaucratic red tape has led to a surge in new private businesses; full liberalization of interest rates seems likely following the introduction of bank deposit insurance in May; Rmb 2 trillion (US$ 325 billion) of local government debt is being sensibly restructured into long - term bonds; tighter environmental regulation and more stringent resource taxes have contributed to a surprising two - year decline in China's consumption of coal.

Over the long - term the stock market has earned a better return than investing in bonds.