Sentences with phrase «of bonds in the fund»

As the price of bonds in a fund adjusts to a rise in interest rates, the fund's share price may decline.

Whether the profit from the sale of a bond in the fund is taxed at ordinary income tax rates or is eligible for a reduced capital gains rate is dependent on the same factors as explained above.

As the prices of bonds in a fund adjust to a rise in interest rates, the fund's share price may decline.

What it means: This yield measure represents the weighted average YTM of the bonds in the fund as of a date, assuming that the bonds will be held to maturity and that all coupon payments and the final principal payment will be made on schedule.

The bad news: Bond funds come with management fees, and the value of your investment will change as the market rerates the prices of the bonds in the fund's portfolio.

One thing you can do is find out the average duration and maturity of the bonds in your fund (s).

Thus, as prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline.

Noload bond funds will have turnover that also varies, because of the average duration of the bonds in the fund.

This duration figure means that if interest rates were to rise one percent this year, the value of the bonds in this fund would fall approximately 2.7 %.

If you buy bond fund shares and hold them longer than the duration of the bonds in the fund (i.e. hold a 10 year fund longer than 10 years), then you get the full coupon and maturity payments for all the bonds in the fund at that moment, exactly the same as if you bought them individually.

On their websites, many mutual fund companies report the average duration of the bonds in their funds.

The average maturity is derived by adding up the maturities of each bond in the fund and dividing it by the number of bonds the fund holds.

As prices of bonds in a fund adjust to a rise in interest rates, the fund's share price may decline.

yields of all bonds in the fund.

Thus, as the prices of bonds in each fund adjust to a rise in interest rates, each fund's share price may decline.

The value of bonds in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer or industry.

The average maturity of the bonds in the fund and index is between five and 10 years.

As the price of bonds in a fund adjusts to a rise in interest rates, the fund's share price may decline.

Not exact matches

«Finally, the increased role of bond and loan mutual funds, in conjunction with other factors, may have increased the risk that liquidity pressures could emerge in related markets if investor appetite for such assets wanes.»

And so what the Fed is basically saying here is that because investors are using mutual funds to invest in bonds, instead of owning the bonds, there could be a problem if investors all want to leave at the same time.

A better option, in Hallett's opinion, is an actively managed global bond fund, in which the manager can move in and out of countries as he or she sees fit.

In the Minutes from the January FOMC meeting, the Federal Reserve addressed the financial situation, and noted that the increasing role of bond and loan mutual funds could pose a liquidity risk if everyone tries to get out of the market at the same time.

Also, a bond fund is only going to have so much cash on hand, so if the investors in a certain fund all want to redeem their shares of the fund at the same time, it will pose problems for the fund manager trying to meet redemption requests.

Some in the market have attributed the sharp market swings seen during the downturns in October and December as indicating structural problems with liquidity in the market — and some fingers have been pointed at the proliferation of bond funds.

When you own a bond mutual fund, you don't actually own a bond — which will continue to pay a coupon so long as the issuer isn't in default — you just own a share of the fund, which is comprised of lots of bonds and sometimes other things.

Exchange - traded funds that track high - yield bond indexes have been the beneficiaries of a cash surge in recent weeks.

It's a surprise to most of his would - be investors, Strisower says, but retirement funds don't have to remain safely snuggled in mutual fund and bond investments.

A spike in bond yields and a clear change of direction from central banks means there isn't a lot of value in global bond markets, a fund manager told CNBC on Tuesday.

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.

LONDON, April 24 - Less than two weeks after the latest round of U.S. sanctions plunged Russia's rouble to 16 - month lows, some global funds have already stepped back in to buy rouble - denominated sovereign bonds and take advantage of the weaker currency.

New bond investors would probably demand a higher return to compensate for the added costs of investing in bond funds.

The bonds are secure and liquid, making them ideal to hold in the event of emergency funding needs.

The exact mix of shares and contingent convertible bonds the HFSF will buy from banks in exchange for any fresh funds it will provide will be decided by the cabinet.

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.

According to the Global Market Strategy team at JP Morgan, pension funds and insurance companies in the G4 - United States, euro zone, Japan and Britain - will buy at least $ 640 billion of bonds this year.

The Vanguard High Yield Corporate Bond fund has underperformed Treasuries in the recent downturn, but it still has a positive return of 0.5 percent in the year - to - date through Oct. 27.

Panigirtzoglou and his colleagues calculate that every one percent rise in stock markets will require around $ 25 billion of bond purchases from U.S. defined benefit pension funds alone.

To maintain the balance of their portfolios, pension fund managers have been selling equities and buying more bonds, and their notable demand for the latter counters the popular narrative that the 35 - year rally in fixed income is over.

That money, which is mostly held in short - term U.S. bonds and money market funds, was kept in Ireland for years, until an investigation by the European Union into whether the company failed to pay taxes caused it to move its holdings to Jersey, a small island off the coast of Normandy that rarely taxes corporations.

Exchange - traded funds that track high - yield bond indexes have been the beneficiaries of a cash surge in recent weeks as market participants figure the central bank probably won't raise rates in 2015, and it could be well into 2016 before anything happens.

The DoubleLine Total Return Bond Fund posted its biggest - ever one - month withdrawal in December, according to Morningstar, with a net outflow of $ 3.5 billion.

These include currency - hedged ETFs, triple - levered ETFs based on commodities, unconstrained bond funds with short positions betting against U.S. Treasurys, private equity funds, emerging market debt instruments, historically less - liquid bank loan funds, and all manner of actively managed strategies packaged in supposedly easy to buy and sell wrappers.

Moody's has today also placed Spain's Baa3 government bond rating on review for possible further downgrade in order to assess the implications of several factors on the Spanish government's ability to continue to fund its borrowing requirements in the private debt markets.

It so happened that Bill Gross, the portfolio manager of the Janus Global Unconstrained Bond Fund, made that 2.6 % call in a Bloomberg interview on Friday and then in his monthly investment letter on Tuesday.

While Bond King Bill Gross, founder of world's largest bond fund PIMCO, is going deep into California and New York munis, claiming the returns are still the best in the market despite the headline risk, even the discussion of bankruptcy as a bargaining chip has caused some to fear bond market hysteBond King Bill Gross, founder of world's largest bond fund PIMCO, is going deep into California and New York munis, claiming the returns are still the best in the market despite the headline risk, even the discussion of bankruptcy as a bargaining chip has caused some to fear bond market hystebond fund PIMCO, is going deep into California and New York munis, claiming the returns are still the best in the market despite the headline risk, even the discussion of bankruptcy as a bargaining chip has caused some to fear bond market hystebond market hysteria.

In this case, that promise is the rise of the unconstrained bond fund.

But when that CCPC reinvests any surplus in, say, mutual funds or bonds, the passive income from those investments is taxed at a rate of about 50 per cent.

Other funds pulling in money lately include the Vanguard Intermediate - Term Corporate Bond and SPDR Barclays Short Term Corporate Bond, both of which took in more than $ 300 million over the past week.

The SPDR Barclays High Yield Bond fund gathered more than $ 1.1 billion, or about half its total for the year, while the iShares iBoxx $ High Yield Corporate Bond took in $ 603 million, pulling it out of negative territory for the full year.

And in those accounts you're probably investing in all kinds of different things because you can choose from thousands of different stocks, bonds, mutual funds, index funds, REITs, MLPs, and so on.