Sentences with phrase «making 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.

Not exact matches

Typically, higher interest rates make existing bonds less attractive to buyers, since they can get new notes at loftier yields.

As interest rates rise, the prices of existing bonds fall in order to make the yield of their fixed coupons competitive in the market.

Bond yields rose and stocks slumped after an unexpected rise in consumer inflation to its fastest pace in a year, making it more likely the Fed will raise interest rates three or more times this year.

Even a debt - ceiling breach of a week or two during which the U.S. Treasury keeps making principal and interest payments to bond holders might hurt the U.S.'s rating.

This tool uses the present value of bond portfolios, adjusted for interest rate and inflation expectations, to show current retirees how much in retirement savings they need today to account for every $ 1 they need in the future, assuming they hold a portfolio made up entirely of investment - grade bonds and longer - term Treasurys.

Making these connections is absolutely vital in building trust and a bond with people - without which they will have much less interest in actually becoming your customer.

She described bonding with the other ladies on the trip, attending swanky cocktail parties, making new friends, and meeting interesting men.

For him, Celestica's expertise in supply - chain management and quality control made it eminently qualified to produce panels whose reliability and predictability would imitate the interest generated by a high - quality bond.

Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.

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.

It's also makes sense to look back at the historical data to see what happens when bonds aren't in a near - continuous falling interest rate environment.

And the Fed increasing interest rates, plus rising bond yields, typically makes stock investors nervous.

This makes sense given how bonds are structured, but I think many investors miss this point when they worry about the potential risks from rising interest rates.

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.

You could potentially lose money in your bond fund depending on interest rate movements around the time you actually need to make your payments.

Typically they make periodic dividend payments based on the interest paid by the bonds held in the fund.

a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that usually includes interest; they have higher price volatility than coupon bonds as a result of interest rate changes

Comments: Eliminates advance refunding for municipal bonds by making interest on advance refunding bonds taxable.

And newly issued bonds tend to offer higher interest rates to make them more attractive to buyers.)

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

Another way to facilitate green investments is for rich governments to buy down interest rates, which makes it more attractive to issue green bonds.

If you're having a difficult time handling the potential risks from rising interest rates, it could make sense to have your safe bucket in cash as opposed to bonds.

It's easier for them simply to swap their junk mortgages to the Treasury or Federal Reserve for full - value U.S. Treasury bonds, and make the government take the loss — and presumably levy taxes to cover the interest charges on the augmented debt!

All else equal, unless it possesses some sort of major offsetting advantage that makes the risk of non-payment low, a company with a low - interest coverage ratio will almost assuredly have bad bond ratings, increasing the cost of capital; e.g., its bonds will be classified as junk bonds rather than investment grade bonds.

The father of value investing and the entire securities analysis industry, legendary investor Benjamin Graham, wrote a considerable amount during his career about the importance of the interest coverage ratio, especially as it pertained to bond investors making bond selections.

Higher rates also make investments like bonds, which pay interest, more compelling to investors.

Reuters reported that the BoJ, as it is colloquially known, is considering making negative interest rates a continued centerpiece of monetary policy, where bond buying has just not been enough to stimulate the economy.

Stocks are being retired by corporate raiders in exchange for high - interest («junk») bonds, and by corporations using their earnings to buy their own stocks rather than to make new direct investments.

These firms base their ratings on the bond issuer's financial health and likely ability to make interest payments and return the bondholders» principal.

In an unconstrained bond fund, the manager can hedge interest rate risk with futures, options, or swaps, or even short Treasury bonds or notes, and make up the loss in yield by overweighting credit.

Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.

Its aggressive post-crisis monetary policy to drive down interest rates made the buying and selling of bonds unprofitable.

What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?

-- Goethe What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?

-- A lot has been made about the potential for a bond bubble with interest rates near historic -LSB-...]

An allocation to bonds hardly makes up for equity losses at current interest rates.

A lot has been made about the potential for a bond bubble with interest rates near historic lows and not much room to fall any further.

While building a bond ladder may help you manage interest rate and reinvestment risk to some extent, there are 6 important guidelines to consider to make sure you are diversified and to attempt to protect yourself from undue credit risk.

«Laddering bonds may be appealing because it may help you to manage interest rate risk, and to make ongoing reinvestment decisions over time, giving you the flexibility to invest in different credit and interest rate environments,» says Richard Carter, Fidelity vice president of fixed income products and services.

Bonds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.

AGI excludes certain types of income received (e.g., municipal bond interest, most Social Security income) or payments made (e.g., alimony paid, IRA deductions, moving expenses).

Many make periodic dividend payments based on the interest paid by the bonds held in the fund.

A bond represents a loan you make as an investor to a company in exchange for interest paid on the bond until maturity, when the company pays back the principal.

A bond indenture makes two primary promises: to make generally fixed semi-annual interest payments and to redeem the bond at par value on maturity date.

Let us teach you how bond prices and interest rates have an inverse relationship and things will make a lot more sense.

They make their money through net interest income, which is the difference between what they receive in interest from loans they issue versus what they pay out on deposits, bonds, and other forms of borrowing.

Although it makes sense to me to use bonds to try to reduce risks and volatility, what about the possible downward slide of bond values as interest rates rise over the next few years?

Look at it this way with regard to your bond funds: you are not earning enough interest on them to make a difference in your lifestyle, so why bother taking on the high risk of a big hit to your invested capital.

Our rigorous risk - management process monitors the ability of bond issuers to make timely payments of interest and principal.