Sentences with phrase «of bonds in the portfolio»

This rule says that the percentage of bonds in your portfolio should equal your age.

Similarly, you should have a variety of bonds in your portfolio, including Treasury bonds, municipal bonds, corporate bonds, bonds with different maturities, foreign bonds and high - yield bonds.

By October 2007, 83 percent of the bonds in the portfolio had been downgraded and 17 percent were on negative watch.

While the chances that one of the bonds in the portfolio will default are higher because of the mutual fund's large number of holdings, the loss in relation to the total holdings will be smaller.

The basic asset allocation strategy says to have your age as the percent of bonds in your portfolio.

When your stocks go down, you may still have the stability of the bonds in your portfolio.

The longer the duration or maturity of the bonds in the portfolio, the more committed the managers are to those bonds.

For people nearing retirement, the recommended percentage of bonds in a portfolio varies widely, ranging from as little as 15 % to as much as 60 %.

When some of the bonds in the portfolio do mature, the money is reinvested in more bonds.

However, all of the bonds in the portfolio were purchased at a premium.

When getting close to retirement age, I would consider increasing the percentage of bonds in the portfolio.

Most of the bonds in the portfolio are mortgage - backed securities, the specialty of DoubleLine founder Jeffrey Gundlach.

In response to some of the commenters above, a small amount of bonds in your portfolio (10 to 20 %) can reduce the volatility of your investment without substantially reducing your returns in the long run.

In a broad decline, closed - end funds suffer a double whammy: the value of the bonds in the portfolio — net asset value — declines.

For example, if bonds currently are overpriced and stocks are underpriced, you would increase the amount of stocks and decrease the percentage of bonds in your portfolio to capitalize on this trend.

Average maturity is used for taxable fixed - income instruments and is a weighted average of all the maturities of the bonds in a portfolio.

Explore bond types, yields, and the role of bonds in a portfolio.

Generally speaking, the percentage of bonds in your portfolio should match your age.

Take it a step further by reducing your holdings of bonds in your portfolio, especially in 401 (k) or IRA accounts where your gains are tax - advantaged.

Premiums and discounts can also occur if bond prices are «stale,» and the ETF's price better reflects the true value of the bonds in the portfolio.

Over time, the portfolio managers would likely seek out more seasoned issues when they trade and also invest in newly issued bonds, so the number of bonds in the portfolio will typically grow.

Clearly, actual holding periods, particularly short - term ones, could produce significant capital gains or losses — primarily for long - term bond funds with average maturities of bonds in the portfolio over 10 years.

The downside risk for the biotech fund particularly short - term ones, could produce significant capital gains or losses — primarily for long - term bond funds with average maturities of bonds in the portfolio over 10 years.

Finally, the vintage of the bonds in the portfolio is concentrated in the worst years, credit-wise, to be originating deals.

The greater the percentage of bonds in the portfolio the smoother the ride.

Not exact matches

How much of a retirement portfolio should be kept in bonds versus stocks?

His legal background proved invaluable in 1991, when the state of California and its insurance commissioner John Garamendi seized Raleigh's then - financial partner Executive Life Insurance Company after the value of the insurer's multibillion - dollar portfolio collapsed — a fate tied to its massive investments in the junk bond market of the go - go 1980s.

But longer term, rising rates will be bad for stocks; therefore, investors may want to evaluate their portfolios and move out of some equities and invest more in bonds, she said.

He started in high - yield bonds and went on during the internet boom to turn a million dollars in patent acquisitions into a portfolio of software intellectual property worth $ 150 million.

Gundlach predicts that both high - yield bonds and a portfolio of mortgage - backed securities could return about 6 percent in 2013.

Investors in the U.K. bond market could see losses on their bond portfolios as the Bank of England continues to be behind the inflation curve, an investment officer told CNBC on Monday.

And so what Marks is saying is that it does not matter if your portfolio holds a bunch of, say, «AAA» - rated corporate bonds and highly - rated government bonds like US Treasuries, which are, in theory, highly liquid assets.

Part of the reason to have bonds is to have stability on days like this; government bonds provide that stability, and they're acting like they should act, by providing that cushion to the equity volatility in your portfolio.

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.

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.

However, rates have retreated from over 8 percent in the last several weeks, and the credit risk of high - yield bonds can offer some diversification from the interest - rate risk of a portfolio of Treasury bonds.

«Following the U.K. election, the relative risk investors saw in European bonds came back and as the situation in Greece develops, risks will hopefully unwind and as we move into a certain environment, we can expect bond markets to continue to normalize,» Thomas Buckingham, portfolio manager of the European Equity Group at JP Morgan Asset Management, told CNBC on Monday.

If the same person instead invested a little less each year (6 % of his income) in a portfolio weighted 80 % to higher - returning equities and 20 % to bonds, he would only have $ 469,000 at retirement.

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.

More broadly, the regulatory agencies in the United States and the Financial Stability Board internationally have work under way focusing on possible fire - sale risk associated with the growing share of less liquid bonds held in asset management portfolios on behalf of investors who may be counting on same - day redemption when valuations fall.

If you have 10 % of your investment capital in cash in a trust company, 40 % in bonds at an independent brokerage firm, and 50 % in equities at a bank - owned firm, how many portfolios do you have?

«It is a terrible mistake for investors with long - term horizons... to measure their investment «risk» by their portfolio's ratio of bonds to stocks,» Buffett wrote in the February 24 letter.

The SMA takes your investment preferences, and the managers, in turn, create a portfolio of stocks, bonds and other securities based on your parameters.

The study examined returns in a diversified portfolio of 60 percent stocks and 40 percent bonds over rolling 30 - year periods starting in 1926.

His expectation is that the overall volatility of a portfolio 30 percent in short - term bonds and 70 percent in stocks is going to be on par with one that is 40 percent invested in a fund tracking the Bloomberg Barclays U.S. Aggregate index and 60 percent in stocks.

More from Balancing Priorities: What to do with your bond portfolio as Fed rates rise Credit scores are set to rise Don't make these money mistakes when you're just starting out «There is no sense in bearing the risk of an adjustable rate when you can lock in a fixed rate at essentially the same level,» he said.

Rebalancing involves disposing of portfolio holdings in asset classes that have risen in value and using the proceeds to buy more of your asset classes that have risen less in order to restore a desired balance between stocks and bonds.

Furthermore, the 1 percent you pay to your money manager doesn't always cover the costs of buying and selling the stocks and bonds in your portfolio or the sales charges (also known as loads) and administrative fees charged by the mutual funds your manager puts you into.

People have been pushed further and further out on the risk curve,» said Michael Pento, an economist and founder of Pento Portfolio Strategies and author of «The Coming Bond Market Collapse» in 2013.

The Fed stopped adding to its bond portfolio in the past year, though it still owns a lot of bonds, and the market and the economy have continued to hum along.