Sentences with phrase «on my bond portfolio»

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.

This may not be palatable to fixed income investors, especially those who rely on their bond portfolio as a source of relative safety and stability.

One thing — you are generating 5.1 k / month for ~ 60k + / yr on your bond portfolio.

Investors with shorter - term investment horizons should be cognizant of the impact that rising interest rates have had on their bond portfolios, and be ready for more volatility as the new administration's policies are implemented beginning in January.

Of course, you'll want to keep an eye on your bond portfolio, as you should with all of your investments.

By now every serious investor understands the consequences rising interest rates will have on bond portfolios.

The ability to reinvest some of your portfolio reduces the impact of changes in interest rates on a bond portfolio.

Short - term bond ETFs can do more than just help fixed - income investors limit the negative effects of rising interest rates on a bond portfolio.

Investors with shorter - term investment horizons should be cognizant of the impact that rising interest rates have had on their bond portfolios, and be ready for more volatility as the new administration's policies are implemented beginning in January.

With interest rate hikes and indications that there will be further increases in 2018, we've been receiving questions about the impact of rising interest rates on a bond portfolio.

The yield on my bond portfolio is around 4.5 % also.

Which I understand and agree with, but if im currently averaging 5 % on my bond portfolio, all of it can be liquidated today, I don't need the money for the next 10 years and it takes the market 6 months to resolve the credit issues, what is the downside to purchasing these instruments?

Not exact matches

Investors should have some of the portfolio hedged — a hedge on half could make sense, as that would essentially be a neutral call on currency, he says — but whether an entire basket of bonds is hedged is up to the manager.

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.

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.

She relies on a database of 1,000 simulations of future returns to conclude that, 75 years from now, a Social Security trust fund portfolio that includes stocks will produce a healthy ratio of assets to benefits, while a trust fund consisting of only bonds will be completely exhausted.

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.

«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.

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.

NEW YORK, Jan 10 - Federal Reserve policymakers reacted coolly to a report on Wednesday that China could curb its massive U.S. debt purchases, pointing out that such rebalancing by countries can be healthy and would not likely disrupt the U.S. central bank's plan to trim its own bond portfolio.

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.

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

A particular group of managers who constantly update their view on the best macro opportunities are known as ETF strategists — they use index ETFs to create a global stock and bond portfolio.

Based on an initial questionnaire about your investment needs, financial background, and risk tolerance, they allocate your money among asset classes (e.g. stocks, bonds, real estate), then use algorithms to monitor and periodically rebalance your portfolio.

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.

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.

«For example, a bond fund may borrow and take on leverage in order to show a higher return but has significantly higher risk than a retiree may want in an income portfolio.»

Thirdly, I think a reasonably diversified stock / bond portfolio can also provide a solid ~ 2.5 - 3.5 % blended yield quite easily, depending on asset mix and growth profile.

A 2.5 % — 3.5 % blend yield on a diversified stock / bond portfolio is OK.

Ask your investment advisor or broker to explain their exact professional status, and to detail whether he or she earns a direct commission on any specific stock, bond or fund that winds up in your portfolio based on their advice.

Here are a couple more articles on how to think about bonds in your portfolio:

Only with bonds it's even harder to create a diversified portfolio using individual bonds on your own unless you (a) have a large amount of capital (typically bonds are sold in lots of $ 10,000 or $ 100,000) and (b) know how to trade bonds on the open market (transaction costs can be larger for bonds than stocks because of the spreads and lack of liquidity).

Consider this simple example with a three - instrument portfolio comprised of a S&P 500 ETF, a long - term bond ETF and a cash - proxy ETF.1 Based on daily returns since 2010, the annualized volatility on the cash proxy (a short - term bond ETF) is effectively zero, compared to 16 % and 15 % for the stock and bond ETFs.

As you can see in the chart below, based on investment performance for the 35 - year period beginning in 1972, a hypothetical balanced portfolio of 50 % stocks, 40 % bonds, and 10 % short - term investments would have done quite well for a retiree who limited withdrawals to 4 % annually.

For example, some investors may have taken on more risk in their portfolios in recent years by moving into lower - quality bonds or dividend stocks, in an attempt to generate additional yield.

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.

Senior Portfolio Manager RJ Gallo provides his take on tax reform and key issues for muni bonds in 2018.

To get familiar with U.S. Treasury bonds so you can make an informed decision on whether to include them in your investment strategies, read on to learn what they're all about — and how to use bonds to diversify your portfolio.

Given those durations, an investor with 15 - 20 years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and dividends.

Use this tool to model the potential impact of interest rate changes on both the value of your individual bond and CD positions and your overall portfolio.

Duration, the most commonly used measure of bond risk, quantifies the effect of changes in interest rates on the price of a bond or bond portfolio.

This environment makes credit research and a focus on quality extremely important when structuring a municipal bond portfolio.

This could be a drag on current growth and cause risk - on / risk - off gyrations, making long - duration bonds useful portfolio diversifiers.

For example, if you're comfortable taking on more risk in exchange for potentially higher returns, your portfolio might be weighted with more stocks than bonds.

Short duration bond funds can help you manage the impact of interest rate changes on your portfolio.

A typical 401 (k) plan returns from 5 % to 8 % based on a portfolio of 60 % stocks and 40 % bonds and other conservative investments.

While the proper allocation to inflation - resistant assets is highly dependent on each investor's unique circumstances and investment strategy, the table above illustrates a 10 % strategic allocation, sourced equally (5 %) from both the stock and bond portions of the existing portfolios.

I decided to run the numbers on this portfolio and compare it to the simple 60/40 stock / bond portfolio.

For instance, a portfolio with an allocation of 49 % domestic stocks, 21 % international stocks, 25 % bonds, and 5 % short - term investments would have generated average annual returns of almost 9 % over the same period, albeit with a narrower range of extremes on the high and low end.

A recent survey of institutional investors in Australia found that exposure to credit risk had increased in the first half of 1999 and that about half of the respondents intended to take on additional credit risk in their bond portfolios over the remainder of 1999.