Sentences with phrase «on a bond if»

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures.

Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime.

You can lose money on a bond if you sell it before the maturity date for less than you paid or if the issuer defaults on their payments.

Yield to Maturity («YTM») is the rate of return anticipated on a bond if it is held until the maturity date.

YTM is a quick way to summarize the yield one would get on a bond if they were to buy it today and hold to maturity.

Yield - to - maturity is the rate of return anticipated on a bond if held until the end of its lifetime.

YTM is the total return anticipated on a bond if the bond is held until the end of its lifetime.

To the comment about changing the interest rate on bonds if you default on other bonds: Actually this DOES happen indirectly: The low - interest - rate bond drops in value so it has a higher yield.

If interest rates start to rise, you may also face the possibility of losing money on a bond if you have to sell it for less than you paid.

Not exact matches

He says that if you can get only a 2 % return on bonds — rates we're seeing today — and 5.5 % yields on blue - chip stocks like BCE, it makes sense to overweight stocks, no matter what your age.

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.

It is not as if Ontario is having problem finding takers for its debt and yields on the province's bonds are competitive with other provinces.

If too much money is invested in safe, risk - free U.S. Treasury bonds, that basically insures a very low return on an investment.

While investors will have to find stocks with higher yields, pay more for them and take on more risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal for retirement income.

«If they do target aggressively the 2 percent inflation target, and undertake a significant amount of QE, that may have an impact on underlying JGB (Japanese government bond) yields as investors become concerned over Japan's debt,» he said.

So for example if you bought a bond with 25 percent of each of the major economies, and Italy defaulted, you would still be paid on the remaining 75 percent, presumably at least,» he added.

If you're prioritizing income, however, long - term bonds are actually good: Their prices will vary depending on the annuities that you buy.

Post-financial market regulations (read: Dodd - Frank) have required banks and other «systemically important financial institutions» to hold more cash on their balance sheet, creating less bond inventory on balance sheets — fewer potential buyers, fewer potential sellers — if portfolio managers are forced to meet client redemptions quickly and en masse.

Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.

With most of these debts being held by Chinese entities, it's unlikely we'll see a banking crisis in the same way we could have seen if Greece or Spain went belly up, said Lau — many foreign banks hold European bonds — but we've seen markets panic on far less worrisome Chinese news in the past.

But if, as a business owner, you haven't at least considered getting your team to together for a midday meal from time to time, you're missing out on a seriously good opportunity to spark conversations, build bonds and get their creative juices flowing.

«If — and it's a big if — U.S. President - elect Trump delivers on his campaign - trail fiscal promises, U.S. market interest expectations and bond yields have room to rise even further in 2017,» says Lena Komileva, managing director of g + economics in LondoIf — and it's a big if — U.S. President - elect Trump delivers on his campaign - trail fiscal promises, U.S. market interest expectations and bond yields have room to rise even further in 2017,» says Lena Komileva, managing director of g + economics in Londoif — U.S. President - elect Trump delivers on his campaign - trail fiscal promises, U.S. market interest expectations and bond yields have room to rise even further in 2017,» says Lena Komileva, managing director of g + economics in London.

More from Fixed Income Strategies: 60/40 stock - bond weight rule needs to go on a crash diet Here are some hidden tax benefits for seniors, caregivers If you're a fixed - income investor, here's what to invest in... and what to avoid

That has Deutsche Bank wondering if there is likely to be a wave of companies failing to pay interest on their bonds.

If he's on the desk, someone might try and hit that bid, and certainly no one is coming to buy bonds, so it is time to hide mode.

If Brexit - like sentiment in other nations leads to restrictions on the flow of trade and labor, he adds, «that is going to create greater uncertainty and volatility» — at a time when some commentators believe that global stock and bond prices are overdue for a tumble.

All they need to know, is if they can hit 98 bids on X number of bonds that the ETF's are looking for, they can hit those bids, buy the ETF, do a redemption, where they exchange ETF's for the bonds (to get net flat) and take out a profit if the ETF is trading cheap enough.

If any bond you wanted to sell is either offered only, or down more than a point on the bid side, but HYG or JNK have barely budged, you sell them.

The old rule of basing stock asset allocation on a formula of «100 minus your age» — leading to, say, a 40/60 stocks / bonds split if you retire at 60 — is outdated.

Investors are set to snap up the bonds with an interest rate of less than 3.4 %, the Financial Times reported on Thursday, or about half the rate Sprint would have had to pay if it issued the bonds without any backing.

A carry trade is typically based on borrowing in a low - interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest or deploying proceeds into assets — such as stocks, commodities, bonds, or real estate — that are denominated in the second currency.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

This would treat all her assets — including stocks, bonds and property — as if they were sold on the day before the expatriation date and would impose levies on them based on their fair market value.

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close

But if bond prices crash, investors will want to take their money out, the funds will need to sell, and all those giant bond funds that provided the bid for bonds on the way up will turn into sellers on the way down.

But as investors bid up bond prices, the yields come down e.g. $ 10 dividend payment on a $ 100 bond = 10 % dividend yield, but if the bond gets bid up to $ 200, the dividend yield is only 5 %.

For example, if you're early on in your career, most of your money will be held in growth oriented stocks with a small percentage in bonds, and as you mature, your assets will slowly shift to more stable stocks and a greater percentage in bonds to help reduce volatility.

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

Looking forward, even if you assume bond yields settle down, probably somewhere in last fall's range of 2.2 % to 2.6 % for the 10 - year Treasury note, this moderate year - to - date rise is still likely to inflict significant damage on parts of the market.

If you missed Part 1 of my common sense series on bonds please read Investing in Bonds to learn about the different types of bonds and the basic characteristics of a bonds please read Investing in Bonds to learn about the different types of bonds and the basic characteristics of a Bonds to learn about the different types of bonds and the basic characteristics of a bonds and the basic characteristics of a bond.

Debt covenants may soon become just another issue in the already long list if Valeant defaults on its bond indentures.

The hedge fund would break even on its debt investment if the Berkshire bid prevails because gains in some parts of its debt holdings, which would be paid out in full, would offset losses in the unsecured bonds it holds, where it would take a deep haircut, the people said.

Feel free to leave a comment or shoot me an email if you have any more questions on bonds.

-LSB-...] If you missed parts 1 & 2 of my series on bond investing please read: Part 1 — Investing in Bonds Part 2 — Why Bother Investing in Bonds?

If you believe you have more than 15 years remaining on this Earth, your portfolio should consist of at least 50 % stocks, with the remaining balance in bonds and cash.

Once you make the common sense decision about how you are going to allocate your money between stocks and bonds you can get more creative with your investments if you would like to be more hands - on with them.

Geithner and Obama lobbied the IMF and ECB shamelessly to bail out Greece, simply so that it could pay bondholders, because U.S. banks had issued credit default insurance (CDS) against Greek bonds and were on the hook for a big loss if a default occurred.

On the other hand, if you'll need the money in just a few years — or if the prospect of losing money makes you too nervous — consider a higher allocation to generally less volatile investments such as bonds and short - term investments.

If you buy a bond for less than face value on the secondary market (known as a market discount) and you either hold it until maturity or sell it at a profit, that gain will be subject to federal and state taxes.

And even if the indicator was valid (counterfactually), the article asks readers to accept as given that earnings are properly reported here, that they will grow by nearly 50 % over the coming year, and that investors are willing to key the long - term return they require from stocks to the yield on 10 - year bonds, which has been abnormally depressed in a flight to safety.