Inflation is a concern within Germany as it's still haunted by the hyperinflation of the 1920s and top economists — like Bundesbank President Jens Weidmann — have been noticeably cautious on too
much bond buying from the ECB.
Not exact matches
Much of the shift lower in our yield forecasts derives from the view that the ECB [European Central Bank] will continue to
buy bonds in its QE [Quantitative Easing] program.
The interest rate on 10 - year
bonds was 1.79 % at the end of 2014 — about half as
much as the federal government had to offer to get investors to
buy its debt a decade ago.
The idea here is not so
much that the big mutual funds could
buy CDS to hedge their
bonds (why?
So
much sexier to say you
bought XYZ stock than a sovereign
bond (Except for a sovereign British
bond:O)-RRB-.
With unconstrained
bond funds free to take an unusually wide range of risks, investors should make sure they aren't taking on too
much risk themselves in
buying such funds.
I just don't think there is that
much value in
bonds at all, and the only reason why I would
buy bonds is for tactical hedges (instead of shorting this crazy market).
Capital controls have historically been as
much about preventing foreigners from
buying local government
bonds as it has been about preventing destabilizing bouts of flight capital, and living in China, where an aggressive demand for the privileges of reserve currency status coincide with equally aggressive policies that prevent the RMB from achieving reserve currency status (and that transfer ever more of the «benefits» to the US) made clear the huge gap in rhetoric and practice.
First, the Fed will shrink the balance sheet
much more slowly than it grew it through its
bond -
buying program.
But a bigger question looms: Will the
much - publicized settlement change the rules of engagement between raters and corporate issuers of
bonds, as well as the investors who
buy them?
And if you can
buy some business that earns high returns on equity and has even got mild growth prospects, you know, at
much lower multiple earnings, you are going to do better than
buying ten - year
bonds at 2.30 or 30 - year
bonds at three, or something of the sort.»
It can't keep
buying $ 800 bln of
bonds a year for
much longer, but negative rates are deeply unpopular.
For three - straight years — between 2014 and 2016 — the greenback surged higher as the Fed ended «QE3,» the stimulus program that had the U.S. central bank
buying as
much as $ 85 billion worth of government
bonds per month, and did away with the zero - interest - rate policy that was in place since the financial crisis.
Also, funds
buy their
bond at institutional prices, which are
much lower than the price you pay in the retail market..
We have government debt, corporate debt, and a
much larger Fed balance sheet (which, some people argue, drove
bond buying by the public), but those are offset by a significant deleveraging in household and financial sector debt.
It also can be used to compare the whole market against
bond yields... In most cases the earnings yield of equities are
much higher then in risk free treasury
bonds Earnings yield is basically the amount of earnings you
buy for every dollars worth of...
The class - struggle argument, however, had
much more resonance in the days when stocks,
bonds and other wealth were held by a tiny minority while the masses struggled to
buy food and pay rent.
By
buying and holding
bonds until maturity, investors can also
buy bonds with coupon payments and maturities that meet specific income needs, as they know exactly how
much they are going to receive over the life of the
bond.
The Gold and Silver stock sector is very small compared to the
bond and stock markets and it won't take
much buying, percentage wise, to push these stocks into the stratosphere.
And therefore, those are the sorts of concerns, clearly as
bond investors we have to have in the back of our mind because while we're still very
much supported by central banks continuing to
buy government
bonds, the Fed [US Federal Reserve] has announced that it is beginning now to not only end the taper, that ended some time ago, they are potentially selling
bonds back into the market.
Brandt explains it this way: «There's a debate to be had about how
much of the float can go into
buying businesses and stocks, and how
much needs to be in lower - return
bonds and Treasury bills.
On the other hand, when you
buy individual stocks and
bonds, if one goes south, your savings could take a
much bigger hit in a short period.
For me, most of my
bonds were
bought when yields were
much higher.
What you can and should know when
buying a
bond is its coupon rate (how
much interest it pays) and when it matures.
You say the coupon is 4 % or so which I think is a fair statement, but surely the yield to maturity must be
much lower, 1.5 - 2 % assuming you aren't
buying 30 + year
bonds or junk paper?
I still hold some municipal
bonds for CT, but given my income is zero since I FIRED I don't have as
much reason to
buy them as you.
There really isn't
much to say about my latest
buy of Calamos Global Dynamic Income Fund (NASDAQ: CHW), a closed - end fund that's widely invested in individual companies, convertables, and corporate
bonds.
Bond funds are more liquid (
much easier to
buy and sell) than individual
bonds.
If
bond yields were to rise
much, decreasing the value of my
bond funds accordingly, I'd probably use some of the maturing CD proceeds to
buy more shares of them, assuming the best available CD rates didn't also rise proportionally.
Yield to maturity is very similar to current yield, which divides annual cash inflows from a
bond by the market price of that
bond to determine how
much money one would make by
buying a
bond and holding it for one year.
Even if the primary market were dominated by
buy - and - hold investors (more common in
bonds, less common in stocks), the speculation inherent in
much secondary trading provides real value to the IPO syndicates, and longer - term investors.
Several strategies are available to help you
buy bonds that will meet your investment goals, time frame, and how
much risk you're willing to take.
What's more, you can
buy shares in a diversified
bond fund for
much less than it would cost you to
buy just a single individual
bond.
For example, when it comes to fixed income instruments, I
much prefer
buying US denominated corporate
bonds which trade electronically and offer better pricing than Canadian
bonds which trade via Canada's dealer network and are subject to large markups by the various financial institution.
What you pay depends on a number of factors: Where you
buy the
bond — say an online broker or a full service investment firm; what type it is — U.S., Canadian, corporate or government; and how
much of it you want — the price can go down the more you
buy, so institutional investors usually get a better price.
But with a rapidly growing client,
much as I liked to source
bonds that I fundamentally liked on the secondary market, I had to
buy a lot of
bonds in the new issue primary market.
If flippers ever get big, despite the efforts of the dealer desks, they will price a deal very tight, and let the flippers take a big loss, with no one wanting to
buy the excess
bonds unless they are
much,
much cheaper.
As the
bond nears its maturity date, you will be unable to
buy it for
much less than its maturity value (including the interest), for exactly this reason.
The I -
bonds you would have to
buy many different instances of I -
bonds at different fixed rates making sure that they aren't too
much lower than the TIPS rate.
When I say pricing scheme, I'm not talking about how
much the actual stocks /
bonds cost when you
buy them.
As a result, investors won't pay Jane as
much for her
bond, since they could
buy a newer
bond that would pay them more interest.
One potential answer is to only
buy shorter term
bonds, whose value will be
much less affected by interest rate changes.
Your marginal tax rate is crucial for figuring out whether you should
buy taxable or tax - free
bonds, how
much all that mortgage interest is costing you, and whether it makes sense to convert your traditional IRA to a Roth IRA.
Although in real estates favor it can be leveraged
much more than stocks or
bonds, if you put down 10,000 to
buy 100,000 worth of property you were effectively getting 10x the gains on your original money.
As
much fun as it sounds to call the bottom of the market and
buy up a great opportunity while everyone else is ignoring it, the real reason most investors needs
bonds is so they don't derail their own portfolio with bad decisions.
For the longest time, small investors couldn't see how
much other investors were
buying and selling
bonds for, meaning that their broker could seriously rip them off.
Well,
much like equities, you can
buy bonds individually or
buy a
bond ETF.
Also, control risk by rebalancing if market movements pull your stock /
bond split away from Age =
Bonds — sell what you have too
much of and
buy what you have to little of.
Hedge funds
bought long duration assets, stocks and longer
bonds, when their capital bases could be withdrawn at
much shorter intervals.
That's actually a good return these days,
much better than you can get in a bank or C / D or Treasury
bond, and so people might be more encouraged to
buy, while sellers are anxious to hold on.