Sentences with phrase «of bonds you hold»

One line of thinking now is that the central bank may opt to combine the two programs and buy longer - dated bonds more aggressively, then set as its new target the total balance of bond holdings or the size of its balance sheet, the sources said.

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

If a fund investor is resident in the state of issuance of the bonds held by the fund, interest dividends may also be exempt from state and local income taxes.

Once you have made your purchase, we encourage you to sign up for Fidelity's fixed income alerts to receive email notifications in the event one of your bond holdings is downgraded or placed on negative credit watch.

Let's attach numbers: bank reserves are $ 1bn, the interest rate on reserves (and bonds) is 10 %, and we'll vary the stock of bonds held by the central bank.

In a statement, the Fed said it expects to begin allowing some of its bond holdings to mature «relatively soon.»

If a fund's investor is a resident in the state of issuance of the bonds held by the fund, interest dividends may also be exempt from state and local income taxes.

Though last year's contribution — made from revenue on its portfolio of bond holdings — declined from 2016, it was well above the average in years before the financial crisis.

But I just reallocated about 1/3 of the bond holdings into equities due to the slight dip over the last few weeks.

By understanding that we are really making a loan to God and he is altogether dependable (believable, credible) to make good every coupon of the bond we hold against him.

Still not content, some companies use heat, acid, enzymes or a combination to purposely break down some of the bonds holding the amino acids together.

Considering that this algorithm never replenishes any of the bond holdings, it does a great job.

One is to invest a portion of your bond holdings in TIPS, or Treasury Inflation Protected Securities, which have payouts that track inflation.

A bond fund gives you instant access to a diversified portfolio of bond holdings.

If interest rates rise, the values of bonds held by the fund would fall, negatively affecting total return.

There are Interest Rate Hedge ETFs; there are ways to invest in the bond market (a «bond ladder» where you reinvest every so often a portion of your bond holdings in the new higher interest rate bonds); or investing in companies that will prosper in a higher interest rate environment, including banks, FOREX trading firms, etc..

So many of our bond holdings have been moved into shorter duration bonds.

As interest rates fell, the value of their bond holdings rose.

I expect interest rates to rise at some point in the future which should cause the value of the bonds held to decline.

The Fed has the choice of whether government liabilities take the form of bonds held by the public, or money held by the public.

For a bond fund, consider also the average maturity of bonds held in the particular fund.

We found what we believe will be an effective way to do so by implementing an Upgrading approach to the bond market that will rotate part of our bond holdings among bond funds of different types and maturities.

I don't think I'm prepared to double the duration of my bond holdings to get 20 or 30 basis points more in return.

If a fund's investor is a resident in the state of issuance of the bonds held by the fund, interest dividends may also be exempt from state and local income taxes.

With an estimated duration of about 8 years on $ 3 trillion of bond holdings, every 100 basis point move in long - term interest rates can be expected to alter the value of the Fed's holdings by about $ 240 billion — roughly four times the amount of capital reported on the Fed's consolidated balance sheet.

Bond portfolio management strategies based on sector rotation involve varying the weight of different types of bonds held within a portfolio.

However when you decide to sell LQD, the share price may not be where it was when you bought it, even though many of the bonds held in the fund's portfolio may have matured.

If long term interest rates were to increase, the prices of the bonds held by funds such as LQD would drop, and therefore the share price of LQD would drop as well.

With the low duration of its bond holdings, the fund is clearly trying to protect its investors against rising interest rates.

As for bonds, you want to insure that your holdings include high - quality government and corporate bonds with a variety of maturities (although the average maturity of your bond holdings should be in the short - to intermediate - term range (say, two to seven years).

What I don't understand is what is the duration of these bonds held by the fund?

I have included SCHR as one of the bond holdings, but ideally in a portfolio holding only 2 bond ETFs I would prefer a broad based bond ETF such as AGG or BND in lieu of SCHR.

You could also further diversify the bond portion of your portfolio by investing, say, 20 % to 30 % of your bond holdings to a total international bond index fund, although, frankly, I don't think an international bond portfolio is anywhere close to a «must have» element for the portfolio of most individual investors.

In 2013, for example, the Liability Hedge Portfolio lost $ 1.44 billion in because a spike in interest rates drove down the prices of its bond holdings.

(Fidelity does not publish New Income's duration; most of the bonds it holds have long maturities, so it would certainly feel the sting of rising rates overseas.)

In a nutshell, if central bank rate hikes are going to lead to higher long - term yields, investors will want to shorten the duration of their bond holdings.

Plus the majority of its bond holdings are very long term, typically 15 - 30 years.

Later, as you move closer to retirement and the number of future tosses declines, it's prudent to scale back the short - term risk of loss by gradually increasing the percentage of bonds held in the portfolio.

This can be accomplished by investing some portion of your bond holdings in government TIPS bonds as discussed in Article 6.2, because TIPS returns are adjusted for changes in inflation and perform particularly well in situations where interest rates rise unexpectedly.

Indeed, our now 65 - year - old might count the present value of her Social Security and pension annuities as part of her bond holdings — and take that into account when she decides how to split her financial accounts between stocks and more conservative investments.

In both cases the OID shown multiplied by the number of bonds you hold is what should appear on your tax form 1099 - OID for the year.

If this happens, the price of your bond investments will likely fall regardless of the quality or type of bonds you hold.

Given the likely low future returns for bonds for the foreseeable future, I will not devote a lot of discussion to the question of bond holding diversification.

Bond investors may want to consider shortening the duration of their bond holdings.

3) The average maturity of bonds held by foreign investors in US Treasuries is falling.

The usefulness of the risk - adjusted return concept is that we can use it to evaluate a proposed strategy to determine whether it has historically been a better way to increase returns (or reduce risk) than simply adjusting any of several other well known variables (e.g., stock vs. bond allocation, duration of bond holdings, credit quality of bond holdings, etc.).

Higher dividend payments will be paid when interest rates are higher, generally speaking, though life insurance dividend rates are notoriously slow to adjust both higher and lower which is in part a reflection on the duration of their bond holdings in the cash reserve account.

Not exact matches

Especially now, with a third of the world's sovereign bonds carrying a negative yield, why would you want to hold foreign paper?

The head of BMO Investments thinks the 60/40 asset allocation ratio (holding 60 % stocks, 40 % bonds for younger investors; the reverse for retirees) is outdated.

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»).