Sentences with phrase «occur in bond prices»

Higher yields also offset some of the losses that occur in bond prices, which can help stabilize total returns.

Not exact matches

If this all occurs while rates are rising, which of course means bond prices are moving in the opposite direction, we could surely see a very sloppy bond market over the next year or two.

Bond investors will face a new challenge as this occurs: the potential for price weakness in short - term bond fuBond investors will face a new challenge as this occurs: the potential for price weakness in short - term bond fubond funds.

In the case of financial prices, such as the exchange rate, bond yields, commodity prices and share prices, of course, the adjustments occur at once, as market participants can immediately adjust prices to reflect their expectations of what is to come.

Because a bond will always pay its full face value at maturity (assuming no credit events occur), zero - coupon bonds will steadily rise in price as the maturity date approaches.

There is No Guarantee that the Index Level Will Decrease or Increase by 1.00 Point For Every 0.01 % Change in the Level of the Underlying U.S. Treasury Note or Bond Yield or U.S. Treasury Yield Curve: Reasons why this might occur include: market prices for underlying U.S. Treasury note or bond futures contracts may not capture precisely the underlying changes in the U.S. Treasury note or bond yield or the U.S. Treasury Yield Curve, as the case may be; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced montBond Yield or U.S. Treasury Yield Curve: Reasons why this might occur include: market prices for underlying U.S. Treasury note or bond futures contracts may not capture precisely the underlying changes in the U.S. Treasury note or bond yield or the U.S. Treasury Yield Curve, as the case may be; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced montbond futures contracts may not capture precisely the underlying changes in the U.S. Treasury note or bond yield or the U.S. Treasury Yield Curve, as the case may be; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced montbond yield or the U.S. Treasury Yield Curve, as the case may be; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced montbond weighting is rebalanced monthly.

Premiums and discounts can also occur if bond prices are «stale,» and the ETF's price better reflects the true value of the bonds in the portfolio.

If an existing bond receives a downgrade in its credit rating, it is less appealing to investors and they will require a higher interest rate to invest, which, again, occurs through a lowering of the bond price.