Sentences with phrase «of bond maturity»

To protect your interests — instead of the interests of the mutual fund companies — you need simply to determine the style of fund you desire in terms of bond maturity and investment quality.

In the market for United States Treasury securities, there are three categories of bond maturities:

Not exact matches

Under this hypothetical policy, governments transfer money directly to taxpayers to encourage spending, a handout funded by issuing bonds with a coupon of zero and no maturity date, which central banks buy.

However, if rates are about to head higher for an extended period of time, investors may want to consider shortening up the maturities in their bond portfolios.

In March 2018, SES secured an eight - year EUR 500 million Euro Bond at a low annual coupon of 1.625 % which allows SES to refinance an upcoming debt maturity at more favourable terms.

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.

«Bonds can be a stable reserve of value, or they can be as volatile as stock,» said David Yeske, co-founder of advisory firm Yeske Buie Inc. «I think a lot of advisors are shifting their bond allocations to shorter maturities and higher credit quality.»

Seadrill said the approved plan, which extends maturities of $ 5.7 billion in bank debts, converts $ 2.3 billion of unsecured bonds to equity and injects $ 1 billion in new debt and equity, would enable the company to take advantage of a market recovery.

Government bonds could help reduce default risk, but because of the length of maturity required to earn any meaningful yield, they do little to reduce duration risk - i.e. the overall sensitivity of a portfolio to interest rate rises.

In April, the Crawford committee released details of a plan to convert the frozen short - term notes into long - term bonds, some with maturity dates almost a decade away.

«In a bond mutual fund, you're invested in a pool of bonds with no set maturity date, which means more risk if interest rates rise.»

Second, the average time to maturity on U.S. debt is six years, meaning that most of the low - yielding bonds now on the books will be exchanged for more expensive debt over the next decade.

The U.S. 10 - Year Bond is a debt obligation note by The United States Treasury, that has the eventual maturity of 10 years.

a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other debt; the issuer goes to an underwriter to get their securities sold in the new issue market; for certificates of deposit (CDs), this is the bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon interest rate, maturity, call features, etc..)

Selling prior to maturity can present a challenge for municipal bond investors due to the fragmented and thinly traded nature of the market.

The yield on a Treasury bill represents the return an investor will receive by holding the bond to maturity, and should be monitored closely as an indicator of the government debt situation.

If interest rates rise, market prices of existing bonds will typically decline, despite the lack of change in both the coupon rate and maturity.

It is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature

the stated value of an investment at maturity; includes bonds, life insurance policies, bank notes, currency, some stocks, and other securities; typically $ 1,000 for a corporate bond

In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled.

Extending the maturities of Greek bonds «would make it impossible to accept them as collateral for refinancing operations under existing rules,» said Jens Weidermann, Germany's new Bundesbank president.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close

a type of asset class in which the investments provide a return in two possible forms; coupon paying bonds have fixed periodic payments and a return of principal; zero coupon bonds are sold at a discount, do not pay a coupon, and have a return of principal plus all accumulated interest at maturity

Its underlying index selects and weights its bonds by market value, and this method yields a portfolio that aligns well with our benchmark in terms of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.

Yields on U.S. 30 - year bonds, which are more sensitive than shorter maturities to the outlook for inflation, have jumped almost 40 basis points since last Friday and a $ 15 billion auction of the tenor on Thursday showed waning appetite for the securities.

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.

Bond Ladder Tool Create a consistent stream of income by purchasing bonds with staggered maturities.

It's just a form of mental accounting to assume that you'll be able to ignore short - term losses in individual bonds with the knowledge that the principle value will be there at maturity.

The difference between Treasury bonds and U.S. Treasury notes is simply the amount of time until they reach maturity.

Although a 30 - year bond is the most common type of bond, you can buy one with a shorter maturity, like a 10 - year bond.

Blackrock's iShares unit recently came out with four ETFs that will focus on corporate bonds and have set maturity dates of 2016, 2018, 2020 and 2023.

For most investors it probably doesn't make sense to invest any further out than intermediate bonds or bond funds (10 year maximum maturity) to lower the risk of large losses.

Yes, you have a maturity date with an individual bond, but this ignores the opportunity cost of investing at higher future rates in the meantime.

The 35 year bull market in bonds most likely ended on July 8, 2016 when the 10 year maturity U.S. Treasury Note yield hit an all - time low of 1.36 %.

Trading across U.S. government bond maturities was range - bound on Wednesday, with yields little changed in spite of gains in the equity market in the last few sessions.

That means looking at the fund's objective, average maturity, credit quality, yield and the composition of the holdings by bond type.

The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $ 50 million, have an amount outstanding of at least $ 5 million and have a maturity of 8 to 12 years.

SHYL tracks an index of USD - denominated high - yield corporate bonds with 0 to 5 years remaining to maturity.

A Treasury bond is basically a long - term security issued by the U.S. Treasury that features a 30 - year, fixed maturity and requires a minimum investment of $ 100.

When rates shot up, the severity of the losses depended on the maturity of the bonds.

He set up a bond ladder by staggering the maturity of his bond holdings.

So while there could be one or even five year periods where longer maturity bonds perform fairly well from these yield levels, over the long - term they're likely to be a poor investment in terms of earning a decent return over the rate of inflation.

In theory, you could hold an individual bond to maturity and never lose any money even though the market value of the bond may fluctuate based on changing interest rates and other factors (but you could still lose out to inflation over time).

If you purchase an individual bond with a five year maturity you will receive interest payments for the term of the bond along with total principal repayment at maturity.

This and tight spreads — the gap between corporate bond yields and that of comparable - maturity Treasuries — might mitigate any positive impact from the tax package.

However, with thousands of ETFs to choose from, more investors, including archerETF clients, are opting to build the bulk of their portfolio with ETFs: Canadian and foreign stocks and even bonds of various issuers and maturities.

As I have covered previously, when you own an individual bond, you invest for a set period of time and get paid interest for the duration or maturity length of the bond.

The Bloomberg Barclays U.S. Aggregate 10 + Year Bond Index is unmanaged and is composed of the Bloomberg Barclays U.S. Government / Credit Index and the Bloomberg Barclays U.S. Mortgage - Backed Securities Index and includes Treasury issues, agency issues, corporate bond issues, and mortgage - backed securities with maturities of 10 years or mBond Index is unmanaged and is composed of the Bloomberg Barclays U.S. Government / Credit Index and the Bloomberg Barclays U.S. Mortgage - Backed Securities Index and includes Treasury issues, agency issues, corporate bond issues, and mortgage - backed securities with maturities of 10 years or mbond issues, and mortgage - backed securities with maturities of 10 years or more.

Investors in Treasury notes (which have shorter - term maturities, from 1 to 10 years) and Treasury bonds (which have maturities of up to 30 years) receive interest payments, known as coupons, on their investment.