Sentences with phrase «of bond principal»

Of the $ 71.5 billion of bond principal outstanding, charter school districts accounted for $ 1.06 billion.

Not exact matches

Issuing bonds is one of the most routine things that happens in today's financial system; governments and companies get a sum of money today and pay interest on it over time, before paying back the principal at some agreed - upon future date, when the bond «matures.»

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.

Even a debt - ceiling breach of a week or two during which the U.S. Treasury keeps making principal and interest payments to bond holders might hurt the U.S.'s rating.

Goldman Sachs on Thursday said it reached an agreement in principal to resolve a long running government investigation into its sales of residential mortgage bonds in the run up to the financial crisis.

Preservation of principal and regular income are dependent upon the creditworthiness of the bond's issuer.

an interest - bearing promise to pay a specified sum of money (the principal amount) on a specific date; bonds are a form of debt obligation; categories of bonds are corporate, municipal, treasury, agency / GSE

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

«People purchase bond funds when they are looking for a safe way to get returns,» said Charles C. Scott, president of Pelleton Capital Management in Scottsdale, Ariz. «However, bond funds can be somewhat risky when interest rates rise, and the bond funds lose some of their principal value.»

In fact, long - term bonds and preferred shares have characteristics that make them a very useful asset class for retirement portfolios, as I explain in my essay Security of Income vs. Security of Principal.

The settlement also calls for the Malaysian side to take over all interest and principal payments on the two 2012 1MDB bonds, which charge interest rates of nearly 6 percent and are due for full repayment by 2022.

Also, as the owner of an individual bond, you are entitled to a 100 % principal repayment when the bond matures.

Private independent rating services such as Standard & Poor's, Moody's Investors Service and Fitch Ratings Inc. provide these evaluations of a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion.

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.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

Bondholders can still recoup their original costs if the value of the interest income the bond has generated is greater than the lost principal value.

Bond funds typically own a number of individual bonds of varying maturities, so the impact of any single bond's performance is lessened if that issuer should fail to pay interest or princiBond funds typically own a number of individual bonds of varying maturities, so the impact of any single bond's performance is lessened if that issuer should fail to pay interest or princibond's performance is lessened if that issuer should fail to pay interest or principal.

(The bonds that funds own each carry the risk of default if the issuer is unable to make further income or principal payments.)

Inflation may diminish the purchasing power of a bond's interest and principal.

We could take the $ 16 billion we have in cash earning 1.5 % and invest it in 20 - year bonds earning 5 % and increase our current earnings a lot, but we're betting that we can find a good place to invest this cash and don't want to take the risk of principal loss of long - term bonds [if interest rates rise, the value of 20 - year bonds will decline].»

The return of principal in bond funds and in funds with significant bond holdings, is not guaranteed.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed.

Bond Statistic Average Life in Years: Expressed in years, average life is time weighting the expected principal payments, taking into consideration the impact of calls and prepayments.

If a bond issuer fails to make either a coupon or principal payment when they are due, or fails to meet some other provision of the bond indenture, it is said to be in default.

Bonds, if held to maturity, provide a fixed rate of return and a fixed principal value.

The payment cycle is not necessarily aligned to the calendar year; it begins on the «Dated Date,» which is either on or soon after the bond's issue date, and ends on the bond's maturity date, when the final coupon and return of principal payment are paid.

Investing in high yield fixed income securities, otherwise known as «junk bonds», is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

«Our business is not about selling a stock, a bond, a mutual fund and insurance,» says David Lane, managing principal of the investment firm Edward Jones Canada.

Matt's expected cash flows appear to decrease over time, as successive rungs of bonds mature, but he may be able to extend that income by reinvesting the returned principal each time one of the bonds matures.

Another view lets Matt review the schedule of when to expect interest payments and the return of principal — providing a view into the cash flow he could expect if he chooses to purchase the suggested bond ladder.

High yield (non-investment grade) bonds are from issuers that are considered to be at greater risk of not paying interest and / or returning principal at maturity.

Higher crude US: CLK8 and commodity prices CRB, +0.42 % have been the principal driver of the short - term jump in the 10 - year break - even rate, the bond market's assessment for inflation over the next 10 years, to 2.18 %.

Of course, if you hold individual bonds to maturity, you may be able to ride out price fluctuations, knowing that as long as the bond issuer doesn't default, you will get your principal back at maturity and interest payments along the way.

The principal of the bond would decline by 43 %, which would swamp the 14 % interest income received over five years, leaving a total loss of 29 %.

With a bonds - first strategy, you can calculate pretty closely how long that pool of money will last, if you draw down both principal and interest.

Bonds» interest payments are calculated as a percentage of their principal, so when higher inflation pushes up TIPS» principal value, the bonds» interest payments rise as Bonds» interest payments are calculated as a percentage of their principal, so when higher inflation pushes up TIPS» principal value, the bonds» interest payments rise as bonds» interest payments rise as well.

Bond credit ratings are the equivalent to an individual's credit score and are designed to guage the risk that a bondholder will not receive a portion or all of the interest and principal payments they are due on a bBond credit ratings are the equivalent to an individual's credit score and are designed to guage the risk that a bondholder will not receive a portion or all of the interest and principal payments they are due on a bondbond.

Highly rated companies that are financially strong and have massive amounts of cash on their balance sheets — think Microsoft, Exxon, etc. — can typically offer bonds with lower yields since investors are confident that the companies won't default (i.e., miss interest or principal payments).

An issuer may default on payment of the principal or interest of a bond.

Our rigorous risk - management process monitors the ability of bond issuers to make timely payments of interest and principal.

In a well - diversified investment portfolio, highly - rated corporate bonds of short - term, mid-term and long - term maturity (when the principal loan amount is scheduled for repayment) can help investors accumulate money for retirement, save for a college education for children, or to establish a cash reserve for emergencies, vacations or for other expenses.

Bonds pay investors interest in the form of coupon payments and offer full principal repayment at maturity.

If bonds are also insured as to the timely payment of principal and interest, no representation is made as to the insurer's ability to meet its commitments

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declBond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond to decline.

In addition, the ECB said it will reinvest the principal from maturing bonds for an extended period after the end of the bond - buying program.

You should also note a bond's duration, which Vanguard explains «represents a period of time, expressed in years, that indicates how long it will take an investor to recover the true price of a bond, considering the present value of its future interest payments and principal repayment.»

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 paymenBond 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 paymenbond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments).

That is why it is advisable to go for insured municipal bonds so that the insurance firm or company will be responsible for payment of your interest and principal if the municipal fails to pay up.