Sentences with word «noncallable»

If so, you buy the longest noncallable bonds, add keep buying every dip, until rates reach your expected nadir.

Now, when I was a bond manager, because my client had a large amount of long noncallable liabilities, I bought less liquid debts when I received adequate compensation to do so, but not more than my client's balance sheet could tolerate.

Investors may reduce reinvestment risk by investing in noncallable securities.

Better to have a ladder of high quality noncallable debt, and take some risk with equities than to take risk in a series of yieldy and illiquid bonds that you don't understand so well.

During non-credit-stressed times, a bank's 30 - year floating rate trust preferred security is roughly as volatile as a five - year noncallable bond that it issues.

Take, for example, a U.S. agency 10 - year note noncallable for 3 years, maturing in 10 years, which can be «called» or redeemed by the agency issuer at the end of the third year after issuance — known as a «10nc3.»

One way is to invest in noncallable securities.

What I am arguing is that choosing the narrow area of the bond market that did best over the last 30 years — highest quality noncallable long debt, is not a fair comparison against the stock market as a whole.

Owners of callable securities are expressing the implicit view that yields will remain relatively stable, enabling the investor to capture the yield spread over noncallable securities of similar duration.

Like equity, which is a long duration asset, these bonds in the index are noncallable with 25 - 30 years of maturity.

Illiquid assets must be funded by equity or long - term noncallable debt, where the term is as long as the asset's horizon.

Those with (expensive) long - dated, noncallable funding did not suffer during the crisis.

Back when dividend yields were higher, and corporate bond yields were higher, both absolute and relative yield managers flourished as interest rates and dividend yields crested in the early 1980s, and the stocks paying high dividends got bid up as interest rates fell, much as the same thing happened to zero coupon and other noncallable long duration bonds.

The three - year noncallable period is known as the «lockout» period.

The spread or difference in yield over comparable noncallable securities compensates callable investors for this «negative convexity.»

Yields on callable bonds tend to be higher than yields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yields.

For example, the embedded option in a 10 - year noncallable for six months (10nc6M) can be likened to a 6 - month European option on a 9.5 - year security.

These securities must therefore pay higher yields than noncallable debt, and their values are more fairly compared by OAS than by yield.

Treasury bonds (or alternate benchmarks, such as the noncallable bonds of some other borrower, or interest rate swaps) are generally not available with maturities exactly matching MBS cash flow payments, so interpolations are necessary to make the OAS calculation.

A callable bond is worth less to an investor than a noncallable bond because the company issuing the bond has the power to redeem it and deprive the bondholder of the additional interest payments he'd be entitled to if the bond was held to maturity.

The yields are comprised of noncallable bonds 20 - 30 years in maturity.

If, during this period, a high - grade, noncallable, long - term bond with a 12 percent coupon had existed, it would have sold far above par.

CMBS, because it is noncallable, makes a lot more sense for longer - dated liabilities.

Unlike a noncallable bond, a callable security's duration, or sensitivity to interest rate changes, decreases when rates fall and increases when rates rise.