Sentences with phrase «on other bonds»

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.
Bond prices change because the interest rate paid on other bonds and loans changes while the individual bond's rate doesn't change.
If interest rates increase then investors can earn more interest on other bonds.
@Rick Francis (# 4): «If I buy a corporate bond, why canâ $ ™ t change the interest rate if the corporation defaults on some other bond

Not exact matches

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.
Real selling isn't just about talking up a product, it's about forming a relationship with those on the other end of the line and then using that bond to introduce a way to actually help them.
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.
That's dangerous for pension funds and other large institutional investors across the world, which have been loading up on bonds, and longer - term bonds to boot.
While most winemakers focus on the quality of the grapes and the effect that soil and weather conditions have had on each year's harvest, Lee and his partners — Mardonn Chua (who like Lee has a biotech background) and Josh Decolongon (a sommelier)-- view the creation of wine as a chemistry experiment, bonding a combination of amino acids, sugars, ethanol and other elements together.
The SMA takes your investment preferences, and the managers, in turn, create a portfolio of stocks, bonds and other securities based on your parameters.
Inc.'s Learning Center offers Web - based courses on stocks, bonds, mutual funds, investment strategies and other financial topics.
In some other past calls, Tepper told «Squawk Box» In May 2013 that the Fed had to taper its bond - buying to keep the stock market advance on an even keel.
They'd either say something like, «Oh, obviously,» because what other kind of person wants to talk about Flemish bonds and Lord Cornwallis on a Saturday morning.
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.
Other government bonds also showed no trading activity on specific days last month, and the 2 - year bond did not trade on Tuesday and Wednesday, the data showed.
She described bonding with the other ladies on the trip, attending swanky cocktail parties, making new friends, and meeting interesting men.
«Stocks certainly look more attractive than bonds, but the case for stocks versus other asset classes is less clear... «So while returns may compress from the outsized gains we have seen over the last several years, we remain constructive on equities.
[105] On January 8, 2008, to address ongoing structural budget issues, Governor Corzine proposed a four - part proposal including an overall reduction in spending, a constitutional amendment to require more voter approval for state borrowing, an executive order prohibiting the use of one - time revenues to balance the budget and a controversial plan to raise some $ 38 billion by leasing the Garden State Parkway, the New Jersey Turnpike, and other toll roads for at least 75 years to a new public benefit corporation that could sell bonds secured by future tolls, which it would be allowed to raise by 50 % plus inflation every four years beginning in 2010.
But long - term rates on mortgages and some other loans have jumped since May, when Bernanke first said the Fed might slow its bond buys later this year.
In addition, interest rates on U.S. Treasury bonds are used as barometers for determining global economic health [9], and as pegs for many other interest rates, including American mortgage and student loan rates [10, 11].
Future analysis done in relation to the October 2014 U.S. Treasury Bond Flash Crash should be done on mini flash crashes in other U.S. markets, especially on mini flash crashes in derivatives markets (since derivative markets exhibit more cross-market interconnectedness than other markets), and on mini flash crashes on the other public stock exchanges.
On the other hand, there are rumors of progress being made on some of the creative, banks - buying - bonds proposalOn the other hand, there are rumors of progress being made on some of the creative, banks - buying - bonds proposalon some of the creative, banks - buying - bonds proposals.
Bond Funds with Large U.S. Treasuries allocations are considered to be Medium Tax Efficiency for investors who are subject to high rates of state / local tax on investment income; for other investors, these bond funds should be considered Lower Tax EfficieBond Funds with Large U.S. Treasuries allocations are considered to be Medium Tax Efficiency for investors who are subject to high rates of state / local tax on investment income; for other investors, these bond funds should be considered Lower Tax Efficiebond funds should be considered Lower Tax Efficiency.
Many even offer target date funds, which are an all - in - one investment consisting of a mix of stocks, bonds and other assets that is managed by the firm that runs the fund and require little to no management on your part.
During times of recession the economy is stimulated with low interest rates and once they get low enough, the yield on bonds and other fixed investments becomes so unattractive that money starts to flow into equities.
According to fund tracker Morningstar: «A mutual fund is a basket of stocks, bonds or other types of assets that is professionally managed by an investment company on behalf of investors who don't have the time, know - how or resources to buy a diversified collection of individual securities (stocks, bonds etc.) on their own.
Mutual funds and ETFs that include stocks may focus on a particular type of stocks, such as blue chip stocks, or may include other securities, such as bonds.
On the other end of the investing spectrum, the average annual returns on bonds since 1926 was just 5.5 percent on average, with a 32.6 percent gain in the best year and an 8.1 percent loss in the worst, according to Vanguard datOn the other end of the investing spectrum, the average annual returns on bonds since 1926 was just 5.5 percent on average, with a 32.6 percent gain in the best year and an 8.1 percent loss in the worst, according to Vanguard daton bonds since 1926 was just 5.5 percent on average, with a 32.6 percent gain in the best year and an 8.1 percent loss in the worst, according to Vanguard daton average, with a 32.6 percent gain in the best year and an 8.1 percent loss in the worst, according to Vanguard data.
On the other hand, bond funds are generally considered to be constant maturity investment funds.
On the other hand, U.S. fixed - income ETFs had outflows of $ 1.7 billion as bond prices sagged and interest rates climbed on the prospect of a more aggressive FeOn the other hand, U.S. fixed - income ETFs had outflows of $ 1.7 billion as bond prices sagged and interest rates climbed on the prospect of a more aggressive Feon the prospect of a more aggressive Fed.
I plan: 5 % — swing for the fences 10 % — save for big blue chip bargain buys that pop up throughout the year 10 % — VNQ, other than our primary residence, I have no exposure to RE, so this should help with that 15 % — VXUS, international index exposure 60 % — VTI, total stock market index (as I get older, I will be also adding BND or a bond fund, but at 32, I'm working on building equities!)
But with a fixed intermediation cost charged by commercial banks competing against each other, this can put an upper limit on the returns granted to corporate bond holders.
The other provinces would have access to Canada Pension Plan surpluses, in proportion to the contributions made by their residents, through the sale of provincial bonds and provincially guaranteed securities on 20 year terms at the long - term federal bond rate.
In theory, you could hold an individual bond to maturity and never lose any money even though the market value of the bond may fluctuate based on changing interest rates and other factors (but you could still lose out to inflation over time).
This policy also applies to bonds, mutual funds and other forms of capital property listed on approved stock exchanges.
In addition to the positive technical element I mentioned earlier, the potential removal of the alternative minimum tax could cause AMT paper to trade closer to the yield on other municipal bonds.
In other words, at a certain level higher bond yields create real competition for stocks, particularly dividend stocks, and put downward pressure on multiples.
These licenses and registrations subject us, among other things, to record - keeping requirements, reporting requirements, bonding requirements, limitations on the investment of customer funds, and inspection by state and federal regulatory agencies.
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.
Still, defaults on bonds or other forms of non-bank debt typically don't end up in bankruptcy.
Monti, however, was critical of German and other insistence on austerity and surrender of control as the price for assistance to countries struggling with unsustainable bond yields.
No matter what your situation, this means creating an investment mix based on your goals, risk tolerance, financial situation, and timeline; and being diversified both among and within different types of stocks, bonds, and other investments.
That will be important to private investors, because if the central bank held itself out as a privileged bondholder, effectively passing more risk on to other bond holders, other buyers might undermine the stimulus program by demanding higher interest rates.
Stocks slide on rising rates and yield curve inversion concerns, but a recession doesn't look likely, judging by other economic data and the high - yield bond...
Other bond funds focus on a narrower mix of bonds, such as a short - term Treasury fund or a corporate high yield fund.
Like other bonds, they promise to pay interest on a regular basis and have a stated maturity date when they return par.
Other bond funds focus on a narrower slice of the bond market, such as a short - term Treasury fund or a corporate high - yield fund.
A typical 401 (k) plan returns from 5 % to 8 % based on a portfolio of 60 % stocks and 40 % bonds and other conservative investments.
On one side of the equation we have rising commodity prices, and on the other side we have falling bond yieldOn one side of the equation we have rising commodity prices, and on the other side we have falling bond yieldon the other side we have falling bond yields.
Investors who are more focused on safety than growth often favor U.S. Treasury or other high - quality bonds, while reducing their exposure to stocks.
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