Sentences with phrase «money on a bond»

You'd also have made money on bonds and on international stocks.

Many investors lost money on their bond funds, but in general, you should expect positive returns.

You can lose money on a bond if you sell it before the maturity date for less than you paid or if the issuer defaults on their payments.

So, why would you lose money on your bond fund if interest rates rose?

You can make a little money on a bond by buying it when its value is lower than its face value and either selling later for a higher value, or waiting for it to mature.

They are less volatile than stocks and the coupon payments are often higher than most dividends, so you don't have to place a good bet to make money on bonds, like you do when buying a company's stocks.

As a result, you CAN lose money on a bond fund in a rising interest rate environment.

If interest rates start to rise, you may also face the possibility of losing money on a bond if you have to sell it for less than you paid.

Not exact matches

Issuing bonds is one of the most routine things that happens in today's financial system; governments and companies get a sum of money today and pay interest on it over time, before paying back the principal at some agreed - upon future date, when the bond «matures.»

«Depending on how old you are, there is a huge difference in how you should approach the very idea of putting your money in bonds,» the «Mad Money» host money in bonds,» the «Mad Money» host Money» host said.

If too much money is invested in safe, risk - free U.S. Treasury bonds, that basically insures a very low return on an investment.

However, that means they have less money to spend on corporate bonds.

The answer is straightforward: The Bank of Japan can buy government bonds on the open market, paying for them with either currency or deposits at the Bank of Japan, what economists call high - powered money.

Green bonds come with higher compliance costs, to verify (or possibly certify) that the money raised is being spent on green projects.

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.

The so - called smart money is focused on currencies over bonds in anticipation of the Fed's long - awaited interest rate increase.

The Penn Wharton Budget Model predicts the added debt eventually would reduce economic growth, as money that might have been spent on productive investment instead ends up in the market for government bonds.

Investors in Puerto Rico's bonds argued in court Tuesday over which group has a claim on sales - tax revenue that could be used to recoup their money.

The bankruptcy led investors to dump the city's municipal bonds on Friday but Orr deflected criticism that it will be hard for investors to lend the city money again.

---------------------------------------------------------- Read more from Mad Money with Jim Cramer Cramer Remix: The MVPs of today's market Cramer's charts show shocking news on Treasury bonds Cramer: Navigating a volatile trader's market ----------------------------------------------------------

A surprising fixed - income alternative For years, retirees have been told that they must invest in bonds in order to preserve and make money on their capital.

Based on an initial questionnaire about your investment needs, financial background, and risk tolerance, they allocate your money among asset classes (e.g. stocks, bonds, real estate), then use algorithms to monitor and periodically rebalance your portfolio.

In recent months, the city has relied on state - backed bond money to meet payroll for its 10,000 employees.

Instead, we will include coverage of U.S. money markets in our daily reports on U.S. Treasury bonds.

[T] he dramatic increase in leveraged bond positions by both US hedge funds and mundane money managers set in motion self - reinforcing liquidations once uncertainty over emerging markets including Turkey, Venezuela, Mexico, and Malaysia - all of which experienced sharp capital flow volatility - put pressure on speculative positions.

an interest - bearing promise to pay a specified sum of money (the principal amount) on a specific date; bonds are a form of debt obligation; categories of bonds are corporate, municipal, treasury, agency / GSE

But there's a pretty good argument that payments on Argentina's euro - denominated bonds never flow through the judge's jurisdiction: Argentina gives the money to a bank in Buenos Aires, which transfers it to a bank in Frankfurt, which holds it in the name of a bank in Brussels, which transfers it to a London nominee for Belgian and Luxembourg clearinghouses, which pays it to bondholders.

Instead of perennially playing Avis to Goldman Sachs» Hertz in the lucrative but dangerous business of bond trading, Mr. Gorman has focused on safer ways of making money.

But if bond prices crash, investors will want to take their money out, the funds will need to sell, and all those giant bond funds that provided the bid for bonds on the way up will turn into sellers on the way down.

«Her comments on their face are wrong,» said Christopher Whalen, senior managing director at Kroll Bond Rating Agency and author of «Inflated: How Money and Debt Built the American Dream.»

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.

For example, if you're early on in your career, most of your money will be held in growth oriented stocks with a small percentage in bonds, and as you mature, your assets will slowly shift to more stable stocks and a greater percentage in bonds to help reduce volatility.

Even when investors stick to stock, bond, and mutual fund ownership, their rejection of simple investing basics such as low turnover results in pathetic returns on their money.

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 institutions are not only using the money to meet their own short - term financing needs, they are also borrowing additional money to purchase the bonds of troubled countries and earn the spread between the yields on those bonds and the much lower rate the ECB is charging them for money.

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

2) BusinessWeek, 1979: «Individuals who are not gobbling up hard assets are flocking to money market funds to nail down high rates, or into municipal bonds to escape heavy taxes on inflated incomes.»

Once you make the common sense decision about how you are going to allocate your money between stocks and bonds you can get more creative with your investments if you would like to be more hands - on with them.

Malkiel (left), the Princeton economist best known as the author of A Random Walk Down Wall Street, now in its 12th edition, took to the op - ed pages of the Wall Street Journal on Tuesday, saying investors who would «pull their money out of the stock market today to invest in bonds are making a huge mistake.»

Most people focus on Warren Buffett's stock - picking talent, but he also has a substantial amount of money invested in bonds, reports CNBC.

On the other hand, if you'll need the money in just a few years — or if the prospect of losing money makes you too nervous — consider a higher allocation to generally less volatile investments such as bonds and short - term investments.

But cash isn't such a bad thing in a rising rate environment as the yield pick up rather quickly on money market accounts or you can roll some of that over into higher yielding short - term bonds.

Investors keep putting money in negative - yield bonds and companies sit on cash.

By the end of that month, yields on the 10 - year Treasury note had climbed by nearly one - half of one percent — yet money continued to flow in to bond funds.

The promoter uses that common bond to raise money by preying on their common trust of the group and its members, thus betraying the trust of an entire group of people.

In our view, its intrinsic value must be zero: a bitcoin is a claim on nobody — in contrast to, for instance, sovereign bonds, equities or paper money — and it does not generate any income stream.

In addition, cities, states, and taxpayers have concerns about the costs of bonds and borrowing, how to get the best return on banked or invested public money, and an interest in finding innovative ways to fund public spending without surrendering public control, as is often the case with public - private partnerships.

The team focuses on selecting investment - grade bonds which offer strong relative value in an effort to generate income while seeking to limit risk to the money invested.

There's a clear uptrend in the amount of money that's flowing into muni bond funds on a weekly basis, fueled by not just the appetite for tax - free income but also a need to preserve capital.

With the larger decline in markets, investors are pulling money out of mutual funds that hold the bonds, depressing their prices and putting pressure on the wider bond market.