Sentences with phrase «newer bonds»

So ILBs that you are stuck with from low rates times will be worth much less than newer bonds at the higher rates, even if you get some of the value back from higher principal amounts.

Then, the interest rates in the economy fall and newer bonds start getting issued at 8 per cent.

For bondholders, that's a good thing, because when rates fall, bond prices rise (after all, you own a bond paying 6 %; newer bonds might be paying only 5 %).

Now, newer bonds have a higher rate than your bond, so if you want to sell your bond, you'll have to lower the asking price.

This is because you have to discount the value of your bond to compete against newer bonds that pay a higher interest rate than your bond.

Also, there is no maturity date as the fund will always roll over into newer bonds as older ones mature.

If prevailing interest rates rise after the bond is issued, newer bonds will pay higher coupons than the older one.

That would drive down the price of existing bonds, which will appear less attractive compared to newer bonds with their higher interest payments.

That's because those older bonds came with higher rates of return than newer bonds, which were issued at lower rates.

As older bonds mature, newer bonds are purchased and the portfolio manager of the fund generally tries to keep the average maturity in the range that is stated in the fund's objective.

The new bonds would capitalize on the province's ability to raise funds at low interest rates, said Finance Minister Charles Sousa.

In his subsequent press conference, Draghi avoided answering directly whether the ECB would go from $ 30 billion to zero, saying «we don't stop suddenly,» but also stressing that the ECB will continue buying new bonds as its old holdings mature.

Even if the president weathered the resulting political storm of overriding the legislative branch, investors would likely shy away from any new bonds issued under such a legal cloud.

New bond investors would probably demand a higher return to compensate for the added costs of investing in bond funds.

The office would also police debt markets and oversee institutional traders, high - frequency traders, new bond and equity issues and disclosure relationships between investment advisers and their clients.

China could take a more measured approach, said Reinhart, and not buy new bonds as old ones mature.

Hailed as «the new bond king,» Jeffrey is the CEO of DoubleLine Capital, where he manages $ 116 billion — and has a stellar track record.

The utility's bond insurers also agreed to buy $ 128 million in new bonds that will help the utility keep operating.

Most people who own individual bonds probably reinvest their principal right back into new bonds, which is exactly what bond funds do.

Jeffrey Gundlach: Hailed by Barron's as «The New Bond King,» Jeffrey is the CEO of DoubleLine Capital, where he manages $ 116 billion — and has a stellar track record.

When rates rise, bonds drop in value because fixed income buyers prefer investing in new bonds with higher yields.

This way, if a bear market occurs, you have a year of cash becoming available at the maturity date so that you do not have to sell stocks, and in a bull market you can buy new bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high quality bonds give versus cash or CDs.

The Treasury Department has estimated that it will no longer be able to issue new bonds after Oct. 17 without authorization from Congress.

That bond eventually would mature, the issuer would return your principal, and you'd have to purchase a new bond if you wanted to continue generating income or maintain your portfolio's asset allocation mix.

According to the China Daily, there were 3.2 trillion renminbi worth of bond swaps in 2015, plus an additional 600 billion renminbi of new bonds issued.

But as newer bond holdings would get added to the index at the now higher interest rates as older bonds matured the performance would play catch - up.

In a portfolio of bonds, old bonds are maturing or being sold and new bonds are being added.

In the new documentary «Everything or Nothing,» former President Bill Clinton says he still finds a post-Cold War relevance in the newer Bond films.

As interest rates rise, the coupon or interest payment for a new bond will also go up, which is good.

Last week, iShares, the world's largest ETF issuer, introduced four new bond ETFs, including a pair rooted in smart beta methodologies.

Bonds that will mature in a couple of years will give investors the opportunity to reinvest their money in new bonds at higher rates so prices do not react quiet so negatively to higher rates.

For example, your new bond may need to have a different rate, maturity or issuer.

There is no electronic trading mandate for corporate bonds of course, but a proliferation of new bond trading platforms and initiatives is upon us akin to...

However it could also mean that one company has just issued a new bond and wants to exchange that for earlier series of their own stock, which remains outstanding.

However, as we mentioned above, the number of new bond - surrogate - type products can be worrisome.

Interest rates generally fluctuate over time, which means the new bonds that the fund is buying are likely to have different interest rates than the bonds being replaced.

This week the United States Treasury began selling $ 100 billion in new bonds to begin financing of what is the biggest federal spending program since World War II.

Federal Reserve (FED): FED SOMA reinvestment is expected to end sometime after rate hike Bank of England (BOE): BOE also reinvests maturing bonds on its balance sheet with new bond purchases

The U.S. territory and the federal government have discussed swapping some of the island's $ 72 bln debt for a new bond paid from a Treasury - run kitty.

Higher retail sales, higher home prices, and general economic strength should generate more revenues for municipalities, which could also mean reduced issuance of new bonds and lower muni yields for investors.

So let's say new bonds being issued are now paying 5.5 percent.

The first phase of sanctions targeted individuals, but these new measures prohibits U.S. institutions from trading new bonds with the government of Venezuela or state - owned oil company PDVSA, a move intended to choke off the regime's finances.

If the bond included a «call provision,» the issuer can redeem it early, too — in order to issue new bonds at a lower interest rate, for example — but usually pays you a little more than the face value to do so.

If an investor bought the $ 1,000 bond at $ 900, she would get a better interest rate on this than she would with the new bond: 5.6 percent.

Sukuk slowdown in H1 2015, bond market hit by external forces.According to Fitch Ratings, total new bonds and Sukuk (with a maturity of more than 18 months) from the GCC +7 (Malaysia, Indonesia, Turkey,...

Conversely, as interest rates fall, prices of outstanding bonds rise until their yield matches that of new bonds issued at the current rate.

The good news is that new bond buyers will earn a higher rate of interest.

As each bond matures, the investor «rolls» the proceeds into a new bond at the far end of the maturity ladder time frame.

To allow them to form new bonds with the incoming staffer.

It is reproduced and added to, by the new bonds of feeling with the novel actualities which transcend it and include it.»