Coupon rate:
The nominal yield on a bond or share of preferred stock.
Not exact matches
Positions that have recently come undone include betting
on steepening
yield curves and inflation expectations (inflation - linked over
nominal bonds)-- and in equity markets, picking value over growth shares.
Over the long term the
nominal return
on a duration - managed
bond portfolio (or
bond index — the duration
on those doesn't change very much) converges
on the starting
yield.
Tactically, now may be an appropriate time to consider taking
on more interest rate risk;
nominal yields on government
bonds look attractive and we believe can persist through the quarter.
Yields on inflation - indexed bonds have moved in a similar way to nominal yields since the last Stat
Yields on inflation - indexed
bonds have moved in a similar way to
nominal yields since the last Stat
yields since the last Statement.
In contrast to
yields on nominal bonds,
yields on inflation - linked
bonds have for the past six months remained close to their lowest recorded levels.
The reasonable long - term predictability of
nominal bond returns based
on their starting
yields.
The «
nominal yield,» or coupon rate, is based
on the
bond's face value.
Real
yields have moved similarly to
nominal yields over the same period, with
yields on 10 - year inflation - linked
bonds currently around 3.5 per cent (Graph 52).
Positions that have recently come undone include betting
on steepening
yield curves and inflation expectations (inflation - linked over
nominal bonds)-- and in equity markets, picking value over growth shares.
Despite the sharp rise in inflation expectations, 10 - year breakevens (the difference between the
yield on a
nominal fixed - rate
bond and the real
yield on TIPS) remain depressed relative to their long - term history.
Yet while
nominal bond yields have declined, the credit risk component of US Treasuries has been
on an increasing trend since last year.
Because of the inflation adjustment, this Fund's 30 - day
yield may be more volatile, and differ substantially from one month to the next, than 30 - day SEC
yields quoted
on traditional (
nominal)
bond investments.
This is compared to
yields on MBonos (
nominal bonds), as measured by the S&P / Valmer Mexico Sovereign
Bond Index, which moved up only 32 bps, with the index returning 4.3 %, buoyed by its coupon carry.
The
yield on nominal five - year Treasury
bonds has been consistently below 2 percent since late June 2010.
Subtract this rate from the
yield on nominal bonds - currently 4.75 percent for the 10 - year note - for a measure of the inflation expected over the term of the
bond.
The higher TIPS
yields are relative to the historical real return
on nominal bonds, the greater the allocation to TIPS and the longer the maturity can be.
Real
Yields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same mat
Yields Another consideration is if TIPS
yields are high or low relative to the real return on nominal bonds of the same mat
yields are high or low relative to the real return
on nominal bonds of the same maturity.
Current TIPS
yields are below the long - term average real
yield of both
nominal bonds and TIPS, but the steepness of the TIPS
yield curve means longer - maturity TIPS are
yielding higher percentages of both the historic real return
on nominal bonds of the same maturity and the historical
yield on TIPS.