Sentences with phrase «low bond interest rates»

Not exact matches

The new bonds would capitalize on the province's ability to raise funds at low interest rates, said Finance Minister Charles Sousa.

The bond purchases, the third round of quantitative easing embarked upon by the Fed in the wake of the 2008 financial collapse and subsequent recession, have kept interest rates and bond yields low.

Ultimately these green bonds will only truly be successful if they allow the province to finance transit projects at a lower interest rate than would otherwise be the case.

For one thing, those 10 - year Canada bonds are yielding just 1.14 % and could lose value should interest rates rebound from their recent lows, as many market - watchers expect.

In a client note on Thursday titled «Yanking down the yields,» the interest - rates strategist projected that bond yields would be much lower than the markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.

Plus, in non-registered accounts, those dividends are taxed at a lower rate than bond interest.

The low interest rates that the Federal Reserve relied on to kick - start the economy, meanwhile, fed this same dynamic, making it easier for fast - growing companies to borrow money to grow further — and making bond interest look unattractive compared with stock dividends.

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.

The Fed's low interest rate policy has driven more and more money into bond funds as investors search for higher yields.

It's similar to the U.S. government's quantitative easing, but rather than trying to buy government bonds to push interest rates lower — rates are already at zero — the goal is to push the yen down and combat chronic deflation.

The bond buy - backs are a component of the Fed's quantitative easing program, whose goal is to inject liquidity into markets and keep interest rates low.

Bond yields were a little lower, reflecting the divergent paths for benchmark interest rates in the U.S. and Canada.

Those figures come in an atmosphere of low interest rates, which depress bond yields, and a relatively flat S&P 500 over the 12 months ending June.

While Fink is right to point out that low interest rates are putting a large burden on those of us trying to save retirement, he does not address the fact that central banks aren't primarily responsible for the fact that bonds of all types are yielding less today than we're used to.

Meanwhile, the survey summary attributed the low showing for bonds to a «wide agreement among advisors that interest - rate risk is exceptionally high right now.»

Also, Ablin added a large portion of the recent rally involved a rotation from bonds into stocks as low interest rates forced investors to seek yield in the stock market.

RATES STILL LOW: Even as concerns about rising bond yields and interest rates spook some investors, bulls are quick to mention that rates are rising off extremely low leRATES STILL LOW: Even as concerns about rising bond yields and interest rates spook some investors, bulls are quick to mention that rates are rising off extremely low leveLOW: Even as concerns about rising bond yields and interest rates spook some investors, bulls are quick to mention that rates are rising off extremely low lerates spook some investors, bulls are quick to mention that rates are rising off extremely low lerates are rising off extremely low levelow levels.

Interest rates are at historic lows, and a sharp spike in rates could drop the value of solar bonds.

Particularly during the period of extraordinary policy accommodation — low interest rates and $ 3.7 trillion of bond buying — the Fed sometimes has struggled to communicate its intentions.

With interest rates so low, stocks are better than bonds, but the Canadian market, he says, should see mid-single-digit returns.

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

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.

Trump's plans to increase fiscal spending has boosted bond yields — a change that would support higher revenue for banks currently languishing in a low - interest rate environment.

«These people owning these bonds are being stuck with the relatively low and riskier interest rates for a very long time.

Under that policy, the Federal Reserve has kept interest rates low and engaged for period of years in a campaign of aggressive bond purchases that have increased monetary supply and bolstered the stock market.

Once again, with the economy improving and the Fed looking closer to raising interest rates, high yields and lower bond prices seem to be the obvious bet.

Interest rates on ultra-safe investments like Treasury bonds have been hovering near record lows since the Great Recession.

The Fed had lowered interest rates down to zero in terms of short - term rates and that pushed bond yields down.

Betterment recommends its clients put their emergency funds in a portfolio with between 30 percent and 40 percent in stocks and the rest in a diversified allocation of bonds because interest rates are so low, Holeman said.

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.

Not just because interest rates are low but because bond indexes have greater interest - rate risk, coupled with a tiny buffer to help offset losses.

A carry trade is typically based on borrowing in a low - interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest or deploying proceeds into assets — such as stocks, commodities, bonds, or real estate — that are denominated in the second currency.

Low interest rates have given a huge incentive to shift out of low - risk assets into stocks and corporate bonds in search of higher returLow interest rates have given a huge incentive to shift out of low - risk assets into stocks and corporate bonds in search of higher returlow - risk assets into stocks and corporate bonds in search of higher returns.

For example, if you hold a bond paying 5 % interest and market rates rise to 6 %, investors would need to pay less for your bond to be compensated for the lower than market rate.

Bonds don't sound too complex but the situation that we are currently in with very low interest rates makes things both interesting and challenging.

And with interest rates at all - time lows and stocks at all - time highs, there are many who expect that not only will a 60/40 portfolio deliver below average returns, but that bonds might not provide the protection they once did.

He was considering selling the bonds to lock in the gains, but then he would still have to reinvest his proceeds at the now lower interest rates.

During times of recession the economy is stimulated with low interest rates and once they get low enough, the yield on bonds and other fixed investments becomes so unattractive that money starts to flow into equities.

Today's biggest bubble in safe assets, however, is the one in Treasury bonds, which is a direct consequence of the Fed's policy of holding interest rates down at abnormally low levels.

ST gov» t bonds offer you the safest investment from a default risk perspective, but you earn a lower rate of interest on them.

Yes, cheap money polices did help stabilize a reeling housing sector, that shouldn't be dismissed, but what else does the Fed have to show for near - zero short term interest rates and the fortune spent lowering longer term rates through its bond buying program?

High interest rates collapsed the stock and bond markets, leading to capital outflows and lower foreign - exchange rates.

BERLIN — Throughout the month, countries caught in the eye of the European financial storm, including Italy, Spain and France, have repeatedly defied expectations, selling big batches of bonds to the public at interest rates significantly lower than investors demanded at the height of the euro crisis late last year.

By anchoring expectations to low inflation and ever falling interest rates, that have been embedded in bond prices, the FOMC may have created a big Minsky moment, and now have the tiger by the tail.

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 potential counter weights that could cap the 10 - year yield would be a negative stock market reaction that drives investors to bonds; lower interest rates outside the U.S. that make the U.S. debt relatively more attractive, and good demand for longer - dated securities from insurers and others.

Future generations should help pay for them and that's why governments today should be issuing 10, 30, or even 50 year bonds at currently ridiculously low interest rates to finance needed infrastructure.

Bonds are also subject to reinvestment risk, which is the risk that principal and / or interest payments from a given investment may be reinvested at a lower interest rate.

I pour the morning cup of mud, schlep out to the stoop to get my paper, and open my WSJ to learn that the yield curve is awfully flat (i.e., the difference between the interest rates of bonds of different maturities is low).