Sentences with phrase «market value of a bond»

In theory, you could hold an individual bond to maturity and never lose any money even though the market value of the bond may fluctuate based on changing interest rates and other factors (but you could still lose out to inflation over time).

The market value of these bonds fluctuates, too, but you don't see it.

The market value of a bond changes over time as it becomes more or less attractive to potential buyers.

It often surprises new investors to learn that even though a bond will repay you $ 1,000 upon reaching its maturity date, the market value of a bond can deviate quite a bit from this amount during its life cycle.

Part of the deal was that as the bonds declined in value AIG had to deposit «collateral», i.e. cash, with Goldman to make up the difference between the face value and the market value of the bonds.

Typically, when interest rates rise, there is a corresponding decline in the market value of bonds.

So the market value of your bond is less than the $ 10,000 that you paid for it.

However, the Fed's decisions on interest rates can also have an impact on the market value of your bonds.

In David's inaugural column on Amazon money and markets «Trees Do Not Grow To The Sky», he calls attention to: «If interest rates and inflation move quickly up, the market value of the bonds that you (or your bond fund manager) hold can drop like a rock.»

If interest rates rise, and the market value of your bond falls, you will not feel any effect unless you change your strategy and try to sell the bond.

As rates move up or down, so does the market value of the bond.

That's why interest rates eventually lose their power to affect the market value of a bond.

If you are considering buying a bond, remember that the market value of a bond is at risk when interest rates fluctuate.

The total market value of bonds tracked in the S&P Municipal Bond Puerto Rico Index has fallen by over $ 7.5 billion.

Chart 1: Total Market Value of Bonds in the S&P Municipal Bond Puerto Rico Index Read more -LSB-...]

The weight of Puerto Rico debt in the market place as measured the market value of bonds in select indices as of September 29, 2015: S&P Municipal Bond Index (S&P's broadest municipal benchmark): 1.96 % S&P Municipal Bond High Yield Read more -LSB-...]

If the yields on either the 10 - year or the 20 - year bonds were to rise modestly — say, to 3.5 % for the 10 - year, and the 30 - year to 4 % — the market value of the bonds (or of bond funds investing in long - term Treasuries) would decline by 20 % to 30 %.

As a general statement, if interest rates are rising the market value of a bond will tend to temporarily fall, and vice versa.

The market value of bonds can go up and down depending on what's happening in the economy and with interest rates.

Puerto Rico municipal bonds have over 27.1 % market value weight in the S&P Municipal Bond High Yield Index and represent over $ 26.7 billion in market value of bonds in that benchmark.

This change will flow through the duration and convexity formulas and the resulting change in the market value of each bond, and the bond portfolio as a whole, will be displayed both in dollar amounts and percentages.

Then input the estimated market value of each bond at the end of the year into column P.

This is the most important feature of this sheet - calculating the resulting market value of a bond portfolio assuming interest rates change.

Most bond indexes are market weighted, meaning they are based on the market value of the bonds.

This is the risk that the market value of the bonds will go up and down as interest rates go up and down.

Not exact matches

His legal background proved invaluable in 1991, when the state of California and its insurance commissioner John Garamendi seized Raleigh's then - financial partner Executive Life Insurance Company after the value of the insurer's multibillion - dollar portfolio collapsed — a fate tied to its massive investments in the junk bond market of the go - go 1980s.

Bonds may be out of favor, but experts say emerging markets fixed income still offers plenty of value.

A spike in bond yields and a clear change of direction from central banks means there isn't a lot of value in global bond markets, a fund manager told CNBC on Tuesday.

Their declining currencies against the dollar (8 - 9 percent over the past 12 months), falling stock market values since the beginning of the year and high (India) and rising (Brazil) bond yields are reflecting their funding difficulties.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

World stocks rose 20 percent last year, significantly outpacing the average on bond markets, meaning the relative value of funds» equity holdings has increased without a single new share being bought.

In addition, some investors successfully build the value of their long - term portfolios buying and selling bonds to take advantage of increases in market value that may result from investor demand.

Without getting into preferred shares and other investments that may be up or down (Buffett does own many bonds), it is easy to drum up market value erosion of about $ 7 billion before getting into the other half of Buffett's holdings.

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close

In today's convertible bond market, the key driver of returns relates to the value of the underlying equity.

Its underlying index selects and weights its bonds by market value, and this method yields a portfolio that aligns well with our benchmark in terms of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.

That's boosting the outlook for inflation, causing the rout in bonds to deepen in Europe after more than $ 1 trillion was erased from the value of the global debt market.

If I read this correctly, any inversion that fails to cause an immediate recession is proof positive that inversions are meaningless, the bond market clueless, and data analysis of little if any value.

But once everything was in place, the markets tried to lure him out of his process as interest rates fell and the value of his bonds went up.

Bonds are weighted according to their market value; however, individual issuers are capped at a maximum of 3 %.

[2] Indeed, to my mind, the value of these initiatives has been less the «integration» aspect than the progress made in enabling eight local bond markets to function more effectively for foreign and domestic investors and, not least, for the governments and other borrowers of those countries.

Bond values fluctuate, so the value of your investment can go up or down depending on market conditions.

The shorter duration of the bond effectively shortens the investment horizon that is required to «immunize» the investor's terminal wealth (though not necessarily year - to - year values) from market fluctuations.

The Barclays U.S. Aggregate Bond Index is a market value — weighted index of investment - grade fixed - rate debt issues, including government, corporate, asset - backed, and mortgage - backed securities, with maturities of one year or more.

The Barclays U.S. Intermediate Government Bond Index is a market value — weighted index of U.S. government fixed - rate debt issues with maturities between one and 10 years.

The Bloomberg Barclays U.S. Aggregate Bond Index measures the performance of Investment Grade securities and is selected by a Market Value process.

Barclays U.S. Aggregate Bond Index is a broad - based, market - value - weighted benchmark that measures the performance of the U.S.dollar - denominated, investment - grade, fixed - rate, taxable bond marBond Index is a broad - based, market - value - weighted benchmark that measures the performance of the U.S.dollar - denominated, investment - grade, fixed - rate, taxable bond marbond market.

Bloomberg Barclays U.S. Treasury Bond Index is a market value - weighted index of public obligations of the U.S. Treasury with maturities of one year or more.

But potential tax implications get trickier with bonds purchased in the secondary market at a premium or discount — in other words, investors that paid more or less than the face value of the bond.

At the same time, some 70 per cent of government - issued bonds are yielding 1 per cent or less, and when you combine the equity / bond value of the 15 largest global markets they've never been more expensive.