Sentences with phrase «most bond investors»

Aside from the few that sell for a quick profit, most bond investors hold on for a long time.

The formula for YTM involves solving for the interest rate in the following equation, which is no easy task, and therefore most bond investors interested in YTM will use a computer:

Like most bond investors, we are concerned about rising interest rates and tax reform, but rather than waiting for higher rates we continue moving ahead anticipating higher rates by tilting the investments toward short and / or intermediate maturities.

Most bond investors take a buy - and - hold strategy, partially because bonds are less liquid than stocks but also because the income characteristics of bonds are attractive over the long - term.

Most bond investors limit their selections to bonds given one of the top four ratings — AAA, AA, A, and BBB.

As far as I can tell, most common stock investors are interested primarily in total return, with cash return being distinctly secondary, and most bond investors do not own common stocks because they need contractually guaranteed interest payments, (e.g., banks and insurance companies).

If you own a bond ETF as most bond investors increasingly should then you basically own a less organized version of a bond ladder because the whole portfolio is diversified across varying maturities.

For most bond investors, it is important to also estimate the yield to call, or the total return that would be received if the bond purchased was held until its call date instead of full maturity.

There are bonds that yield more than 3 %, but those can be as volatile as stocks over time and therefore most bond investors will probably want to limit their exposure to higher - yielding bonds.

None of these historical drawdowns come close to matching the worst historical bear markets in stocks, but they're probably larger than most bond investors would care to sit through.

For most bond investors, it is important to also estimate the yield to call, or the total return that would be received if the bond purchased was held until its call date instead of full maturity.

But as I have argued many times, most bond investors have nominal liabilities.

Most bond investors are sitting on their hands and waiting or doing some selective buying.»