Sentences with phrase «losses on a bond fund»

The maximum loss on the CD in doing an early withdrawal is 1.25 % vs. a potential loss on a bond fund of 5 %, 10 % or more, depending on how much rates increase.

It essentially causes the retiree to lock in low bond returns and even capital losses on a bond fund as bond yields gradually increase (on average) over time.

Not exact matches

The hedge fund would break even on its debt investment if the Berkshire bid prevails because gains in some parts of its debt holdings, which would be paid out in full, would offset losses in the unsecured bonds it holds, where it would take a deep haircut, the people said.

MICHAEL HUDSON: He's making the threat that Europe has to cut its own throat in order to save the United States hedge funds and banks from taking a loss on the Greek bonds that they've insured.

Particularly good to see someone explain that the impact on bond funds is not the simplistic «1 % rise in bank rates means loss of duration %» but depends on the interest demanded at that point in the curve and normal supply / demand issues which are massively distorted for linkers.

The Wall St Journal reported today that the «estimated» losses for mutual funds on PR bonds to be $ 5.4 billion, of which Oppenheimer's estimated losses represent at least $ 2.1 billion, or 38 % of the total estimated losses.

That means the fund would only earn interest income on its bonds; and instead of capital gains, those bond holdings could produce capital losses.

This figure — which should appear on a bond fund's website — estimates the fund's total return based on interest income minus any capital losses.

This means the funds would only earn interest income on their bonds; instead of capital gains, their bond holdings could produce capital losses.

Continue reading: «How to set - off Capital Losses on Mutual Funds, Stocks, Property, Gold, Bonds & Debentures?

Shares of a diversified bond fund, the iShares Core U.S. Aggregate Bond (NYSE: AGG) plunged 6.8 % on October 10th in 2008 and losses over a give period often eat into gains on interest paymebond fund, the iShares Core U.S. Aggregate Bond (NYSE: AGG) plunged 6.8 % on October 10th in 2008 and losses over a give period often eat into gains on interest paymeBond (NYSE: AGG) plunged 6.8 % on October 10th in 2008 and losses over a give period often eat into gains on interest payments.

If you want technical details, look at the «average duration» or «average maturity» of the bond fund; as a rough guide, if the duration is 10, then a 1 % change in interest rates would be a 10 % gain or loss on the fund.

Bond funds on the other hand never mature, so they loose when rates pump and force you to dump at a loss.

Also for the second week in a row municipal bond funds (ex-ETFs) witnessed net inflows, taking in $ 263 million while posting a loss of 0.12 % on average for the fund - flows week.

This is the good information about this how to set off capital losses on mutual funds, stocks, property, bond etc..

Below table has the details on capital loss set - off rules on sale of Stocks, Equity Mutual Fund Schemes, listed Debentures & Bonds;

Gains and losses on bond transactions are reported the same as with any other type of security, such as stocks or mutual funds, for the purposes of capital gains.

On the other hand, if you wanted to reduce your risk of purchasing power loss you could buy a bond aggregate fund which pays about 2 % every year and has a duration of about 5.5 years.

@Catherine: Just to clarify, ZDB had an average return of 1.54 % over the past 2 years — sometimes investors see the capital loss on their bond ETF holdings and forget about the interest they have received from the fund over the past 2 years.

This has fallen to around 16 % in 2011 and is likely to decline further as a result of losses on sovereign bond holdings, pressures on bank capital and increases in US$ funding costs.

To better understand why paying higher bond mutual fund fees creates a «deadweight» loss to individual investors, see this Bond Mutual Fund Fees article elsewhere on this websbond mutual fund fees creates a «deadweight» loss to individual investors, see this Bond Mutual Fund Fees article elsewhere on this websfund fees creates a «deadweight» loss to individual investors, see this Bond Mutual Fund Fees article elsewhere on this websBond Mutual Fund Fees article elsewhere on this websFund Fees article elsewhere on this website.

This strategy, called tax - loss harvesting, involves selling stocks, bonds, and mutual funds that have lost value to help reduce taxes on realized capital gains from winning investments.

«Bond funds and banks are taking their losses and moving on,» says Reis.