Sentences with phrase «of a bond portfolio»

However, reducing the duration of a bond portfolio in such a low rate environment often results in an lower portfolio yield.

This approach involves investing half of the bond portfolio in two «core» funds which do not change.

This is the most important feature of this sheet - calculating the resulting market value of a bond portfolio assuming interest rates change.

That's why we've invested the vast majority of our bond portfolio in high - quality investment - grade bonds.

That's not a lot of income cushion to offset any potential decline in the price of your bond portfolio.

The duration of our bond portfolio remains relatively short as a means designed to protect against rising interest rates.

While people tend to focus more of their attention towards the stock portion of their portfolios, understanding the underlying fundamentals of your bond portfolio is important.

You can research and choose bonds individually, but we strongly recommend that most of your bond portfolio be made up of mutual funds or ETFs (exchange - traded funds).

As each bond approaches maturity the duration, or interest rate sensitivity, of the bond portfolio declines.

However, like some of you, we've been disappointed with the results of our bond portfolios in 2014.

We'll be widely diversified in terms of the total number of bonds the portfolio is invested in.

Alternatively, a smaller portion of the bond portfolio is allocated to «high yield» management, which is exclusively invested in lower quality bonds.

Over 90 % of the bond portfolio assets of these funds invested in bonds and fixed income securities.

The bulk of my bond portfolio is split between short - term corporate bond funds and inflation - indexed bond funds.

It has suggested that changes would come at the expense of its bond portfolio.

Not only have yields been at sustained lows, if rates do begin to rise, the value of bond portfolios is likely to take a hit.

If you fear rising interest rates, the prudent strategy is to reduce the duration of your bond portfolio.

Since the G Fund has unique and desirable qualities, any investor who has access to the TSP should include the G Fund as part of the bond portfolio.

As maturing proceeds are reinvested at the end of the ladder, the yield of the portfolio is greater than what would be expected by the average maturity of the bond portfolio because of the positive slope of the yield curve.

In addition, I assume that all income received is reinvested, which is important because reinvesting income at higher rates helps offset the losses in the initial hike year and increases the total return of the bond portfolio over time.

In October, the Fed began to trim the size of its bond portfolio, by allowing $ 6bn of treasuries and $ 4bn of mortgage - backed securities to mature every month without reinvestment.»

This approach involves investing half of the bond portfolio in two «core» funds which do

Since the late 1970s, changes in the interest rate environment have become the greatest single determinant of bond returns, and managing interest rate risk has become the most critical variable in the management of bond portfolios.

Alternatively, it's best to shorten the average term to maturity of your bond portfolio as interest rates enter into a rising cycle, because the shorter the term, the less their price will be affected.

Flows into broad market funds are strong as well, which shows how investors are using fixed income at the core of their bond portfolio.

Conservative investors can reduce the risk in the core segment of their bond portfolio even further by shortening its average maturity.

If you choose to reinvest, you will have to invest only a fraction of your bond portfolio at the lower rate.

Duration is a measure of a bond portfolio's sensitivity to changing interest rates.

And rather than show the world how pitifully capitalized they really are, banks have opted to reclassify huge sections of their bond portfolios into a different category called «hold to maturity», or HTM.

They're gearing up to take a HUGE bath as the values of their bond portfolios collapse.

Similarly, if an investor expects that market interest rates will go up, the will decrease the duration of their bond portfolio so that the drop in price will be minimized.

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Recall that the main idea is to extend the maturities of your bond portfolio when yield curves steepen and reduce the maturities when yield curves flatten.

Duration measures the sensitivity of a bond portfolio to a change in interest rates.

The Markit iBoxx Asian Local Bond Index tracks the total return performance of a bond portfolio consisting of local - currency denominated, high quality and liquid bonds in Asia ex-Japan.

In order to address interest rate sensitivity in a low rate environment, many investors will reduce the average duration of their bond portfolios by moving to shorter maturities.

It is important not to blur the lines, such as by buying low - grade bonds to increase your income yield if the intended role of your bond portfolio is to provide stability.

The truth of the bond portfolio they purchased is that none of the bonds are «secured,» and the majority of them are callable at a lower amount than the purchase price.

As for the issue of bonds maturing, most individual bonds are part of a bond portfolio that never matures because investors usually reinvest the proceeds of maturing bonds into new bonds.

True, but iShares will probably get even better pricing due to the size of its bond portfolio.

The other half of the bond portfolio is invested in a single upgrading recommendation.

A tool in the management of a bond portfolio that can be used to increase rewards or reduce risks by purchasing a number of bonds and structuring their maturities over time so that they mature at different dates.

The majority of the bond portfolio's in German bunds, the balance in short - dated Irish Treasury Bills (no longer dated Irish bonds), and duration's kept pretty short.

This tool uses the present value of bond portfolios, adjusted for interest rate and inflation expectations, to show current retirees how much in retirement savings they need today to account for every $ 1 they need in the future, assuming they hold a portfolio made up entirely of investment - grade bonds and longer - term Treasurys.

Translated from math - speak to English, we're more or less saying, «the monthly returns of the bond portfolio is equal to some multiple of rate changes plus some multiple of credit spread changes.»

Especially now, when bond yields are so low, I don't see a lot of reason to extend the maturities of my bond portfolio, aside from a small position in ultra-long Treasuries, which is a hedge against deflation.

While longer - duration bonds can provide portfolio diversification benefits, shortening the duration of your bond portfolio can potentially help manage losses due to rising interest rates.