Sentences with phrase «of bond price»

Bond duration, which measures the sensitivity of a bond price to changes in interest rates, demonstrates that prices change less for closer maturity dates.

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.

A measure of bond price volatility.

Strategic Total Return continues to carry a duration of about 3 years (meaning that a 100 basis point move in bond yields would be expected to impact the Fund by about 3 % on the basis of bond price fluctuations), with about 10 % of assets in precious metals shares, and a few percent of assets in utility shares.

Strategic Total Return has a duration of about 3 years in Treasury securities (meaning that a 100 basis point move in interest rates would be expected to affect Fund value by about 3 % on the basis of bond price fluctuations), just over 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

Strategic Total Return carries a duration of about 3.5 years, meaning that a 100 basis point move in interest rates would be expected to affect Fund value by about 3.5 % on the basis of bond price fluctuations, about 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

Strategic Dividend Value is hedged at about half the value of its stock holdings, and Strategic Total Return continues to hold a duration of just over 3.5 years (meaning that a 100 basis point move in interest rates would be expected to impact Fund value by about 3.5 % on the basis of bond price fluctuations), with less than 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

For now, lets just stick to the basics of the bond price and yield relationship.

The relationship of bond price and yield can be summed up pretty simply.

One of the more confusing aspects of bond investing is the relationship of bond price and yield.

Strategic Total Return continues to carry a duration of about 3 years in Treasury securities (meaning a 100 basis point move in interest rates would be expected to impact Fund value by about 3 % on the basis of bond price fluctuations), with about 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

For now, the Strategic Total Return Fund continues to carry a limited duration of about 2 years (meaning that a 100 basis point move in interest rates would be expected to impact the Fund by about 2 % on the basis of bond price fluctuations), mostly in Treasury Inflation Protected Securities.

1 Some people refer to duration as a measure of bond price volatility, but volatility is something different.

Strategic Total Return continues to carry a duration of about 3.5 years in Treasury securities (meaning that a 100 basis point move in interest rates would be expected to impact the Fund by about 3.5 % on the basis of bond price fluctuations), and holds about 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

How are we to think about the message of bond prices when the U.S. Federal Reserve, and other central banks, have literally bought trillions and trillions of dollars of them?

Bond investments are subject to interest - rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments).

What we've seen in the last few weeks is the decline of bond prices and stock prices together since the financial crisis that they both went down together.

(Yields move in the opposite direction of bond prices.)

With this information we can now calculate and test a number of bond prices by plugging various annual interest rates that are higher than 5 % into the formula above.

The best example of interest rate risk is in the dynamic of bond prices and yields, but it's found with any interest bearing assets.

Given the level of bond prices on Friday, rate sheets might have been a little bit worse than the circumstances warranted, which left mortgage firms with some leeway when bond prices started dropping on Monday.

The duration (a measure of the sensitivity of bond prices to interest rate changes) of both these ETFs is higher than the iShares DEX Short Term Bond ETF (TSX: XSB, MER: 0.27 %, YTM: 1.68 %, Duration: 2.61) and lower than the iShares DEX Universe Bond ETF (TSX: XBB, MER: 0.32 %, YTM: 2.57 %, Duration: 6.43).

From a practical standpoint, in terms of being able to translate academic findings into actual investment strategies, 4 factors or «premiums» have been found within stocks and successfully implemented (there are 2 factors that drive the behavior of bond prices):

Since we are currently at an all - time low of interest rates, we are also at an all - time high of bond prices (especially US Treasuries).

Future of bond prices — There is another problem with the current low bond yields.

To discuss the fundamentals of «spread trading», one must recall the relationship of bond prices to interest rate movements.

A reversal of bond prices would mean less support for such investments.

Not exact matches

It is possible there is enough of a demand for «green» debt investments that the province can sell this debt for a higher price than it would get for non-green bonds, thereby reducing their borrowing costs.

That is because dealers aren't the business of holding risk and supporting the price of crashing bonds (unless your dealer name is «Federal Reserve»).

That's exactly what has happened over the last month, as shown in this graph of the yield on the 10 year US treasury bond for the last year (keep in mind that yields going up means prices going down):

The bonds of iHeartMedia have long been in the basket of «distressed debt,» meaning their prices have fallen so far to where their yields are at least 10 percentage points higher than equivalent Treasury yields.

As oil prices have fallen, defaults in the sector have risen — about a quarter of all corporate bond defaults in 2015 were energy related, according to Moody's — and that's made traders even more reluctant to buy.

Bond prices were higher, stocks waffled and the dollar flip - flopped after the Fed's post-meeting statement failed to deliver the clarity markets were looking for on the course of rate hikes.

(Bond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratBond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratbond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest rates.)

(If I owned, for example, $ 1,000,000 of «AAA» - rated bonds from a large US company I could very easily sell them at market price right now.

What that means is that you are in an environment that is going to have further trouble in terms of investment returns that are in areas that are based on economic growth and areas that do relatively well like bonds... Broadly speaking, I think that investors should be looking for lower prices on most risk assets in these developed countries with the exception of Japan.»

Prices of the riskiest portions of collateralized loan obligations (CLOs) have fallen 50 % as of the end mid-December since mid-year, and are now trading at $ 0.25 for every dollar that investors have put in the structured bonds.

Because bond prices tend to move in the opposite direction of stock prices, you can also buy bond funds to further balance the risk of those stock funds.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

As interest rates rise, the prices of existing bonds fall in order to make the yield of their fixed coupons competitive in the market.

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.

I noted a week ago that Bernanke had essentially eased monetary policy by spurring a loosening of financial conditions via higher stock prices, lower bond yields, tighter credit spreads, and a weakening of the U.S. dollar.

In theory, hedge funds can pursue a lucrative strategy of buying impaired bonds from less knowledgeable investors at deeply discounted prices and then taking aggressive legal action to collect all, or almost all, of the promised principal and interest.

«If we assume extremely pessimistic nominal earnings growth of 3 % over the coming decade and a compression in the price - earnings ratio to 10, equities would still deliver returns above current bond yields.

That's left a lot of junk bond fund managers with plenty of exposure to the energy sector at a time when oil prices have crashed and defaults, particularly among fracking companies, are rising.

Timmer: Yeah, so last August which was a key inflection point for the market — because at that point, nobody was expecting tax cuts anymore and the 10 - year Treasury had fallen to 2 %, and the bond market which of course is always pricing in the potential future, was pricing in only one more rate hike over the subsequent two years.

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.

In essence, if correct, this means there is less price risk in government debt securities than corporate fixed income issues, and therefore the extra 10 % should largely be made up of government bonds rather than corporates and preferred shares.

Dip in share prices and bond yields, along with the upcoming election has had an impact on the state of the global economy, causing a setback in business travel growth.

But the simple fact is she just doesn't know, because she doesn't know when the effect of a higher coupon has a more powerful effect on a bond's price than does a shorter term.