Dividends on the common stock of a life insurance company, and interest
on the corporate bonds of a life insurance company, are taxable and you must report them on your tax return.
Not exact matches
The gap between the earnings yield
on the S&P and Baa
corporate bonds is over two standard deviations in favour
of stocks.
April 26 - U.S. stock index futures pointed to a strong open for the tech - heavy Nasdaq
on Thursday as a slew
of upbeat earnings from Facebook and Qualcomm helped set aside worries over rising U.S.
bond yields and
corporate costs.
Based
on where
bonds are trading today, the market is saying about 5 %
of those
corporate loans will go bust, or roughly $ 35 billion worth at the six biggest banks.
Although it is fair to say that the recent uptick in volatility has in part reduced earlier concerns about prolonged low volatility and associated reach - for - yield behavior, it has placed added focus
on the resilience
of liquidity, particularly in markets, such as the market for
corporate bonds, that may be prone to gapping between liquidity demand and supply in stressed conditions.
It can have profound effects
on the attractiveness
of corporate bonds.
Earlier this week, the Wall Street Journal, published a fascinating story
on the market for
corporate bonds that comply with the standards
of Islamic law.
an interest - bearing promise to pay a specified sum
of money (the principal amount)
on a specific date;
bonds are a form
of debt obligation; categories
of bonds are
corporate, municipal, treasury, agency / GSE
The assumed discount rate utilized is based
on a broad sample
of Moody's high quality
corporate bond yields as
of the measurement date.
Blackrock's iShares unit recently came out with four ETFs that will focus
on corporate bonds and have set maturity dates
of 2016, 2018, 2020 and 2023.
It also appears that the ECB will concentrate
on reducing its purchases
of government (rather than
corporate)
bonds, but here issuance is increasing, with the net amount
of eurozone government debt set to expand in 2018, in contrast to the contraction seen over the previous 18 months.
These steps include: efforts to simplify prospectus requirements for retail vanilla
bonds and ease the personal liability
of company directors; improving market transparency through the RBA's publication
of new measures
of corporate bond yields; the lengthening
of the government
bond curve; and the listing
of certain fixed - income securities
on the Australian Securities Exchange.
A more important indication
of excess, though not «animal spirits,» might be negative interest rates
on European sovereign and
corporate bonds.
This is, however, still below the comparable figures in the United States, where 70 per cent
of corporate bonds on issue are rated below A +.
Other
bond funds focus
on a narrower mix
of bonds, such as a short - term Treasury fund or a
corporate high yield fund.
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.
While fixed - income ETFs had net inflows
on the whole, the iShares iBoxx $ Investment Grade
Corporate Bond ETF (LQD) and the iShares 20 + Year Treasury
Bond ETF (TLT) were at or near the top
of the outflows list.
Each day these dealers,
on average, trade about $ 700 billion
of bonds (including Treasury, government agency,
corporate, and municipal
bonds) with clients, and billions more in trades among themselves.
I will then talk more specifically about some
of the data the Reserve Bank has been collecting
on the
corporate bond market.
Some 5.7 %
of corporate junk
bonds from emerging markets are trading at prices below 70 cents
on the dollar, more than double the rate for higher - risk U.S.
bonds, according to JPMorgan.
Some holders
of corporate bonds (like the new Apple
bond) were suddenly down 10 % just
on interest rates alone.
Callable and puttable The issuer
of a callable
corporate bond maintains the right to redeem the security
on a set date prior to maturity and pay back the
bond's owner either par (full) value or a percentage
of par value.
Floating - rate * The coupon
on a floating - rate
corporate bond changes in relationship to a predetermined benchmark, such as the spread above the yield
on a six - month Treasury or the price
of a commodity.
These paybacks have pushed up the yen's exchange rate by 12 % against the dollar so far during 2010, prompting Bank
of Japan governor Masaaki Shirakawa to announce
on Tuesday, October 5, that Japan had «no choice» but to «spend 5 trillion yen ($ 60 billion) to buy government
bonds,
corporate IOUs, real - estate investment trust funds and exchange - traded funds — the latter two a departure from past practice.»
According to preliminary statistics, the aggregate financing to the real economy (AFRE)... was RMB 19.44 trillion in 2017... Specifically, RMB loans to real economy registered an increase
of RMB 13.84 trillion... foreign currency - denominated loans (RMB equivalent)... recorded an increase
of RMB 1.8 billion... entrusted loans registered an increase
of RMB 777 billion... trust loans registered an increase
of RMB 2.26 trillion... undiscounted bankers» acceptances recorded an increase
of RMB 536.4 billion... net financing
of corporate bonds stood at RMB 449.5 billion... equity financing
on the domestic stock market by non-financial enterprises registered RMB 873.4 billion...
Each month, Palhares and Richardson sorted
corporate bonds into quintiles based
on each liquidity measure and computed the return
of a long / short portfolio that buys the least liquid
bonds (i.e., smaller issue sizes, higher bid / ask spreads, lower trading volume, higher price impact or higher frequency
of zero - trading days) and sells the most liquid
bonds (i.e., larger issue sizes, smaller bid / ask spreads, higher trading volume, lower price impact or lower frequency
of zero - trading days).
The average investment - grade (high - yield)
bond trades
on less than 32 % (36 %)
of days over the prior six months — liquidity in
corporate bonds was considerably lower than in traditional listed equity markets.
Yields
on high - yield
corporate bonds narrowed (centre panel) and record low government
bond yields pushed up valuations
of risky assets (right - hand panel).
In pursuance
of the Union Budget 2018 announcement, the board also cleared a proposal
on changing the investment grade rating from AA to A for
corporate bonds, which would boost investment scope while ensuring credit quality.
Which doesn't cover investments in shares, the returns
on which are directly affected by changes in the
corporate tax rate (or the myriad
of other investment vehicles liked
bonds, REITs, mutual fund trusts, etc. that make up the bulk
of the universe for Canadian investors).
2016.09.15 RBC Global Asset Management Inc. announces final details
on maturity
of RBC Target 2016
Corporate Bond Index ETF RBC Global Asset Management Inc. (RBC GAM) today announced final details regarding the scheduled maturity
of RBC Target 2016
Corporate Bond Index ETF (TSX: RQD)...
2016.03.15 RBC Global Asset Management Inc. announces maturity date
of RBC Target 2016
Corporate Bond Index ETF RBC Global Asset Management Inc. today announced that the RBC Target 2016
Corporate Bond Index ETF (TSX: RQD) will mature
on Friday, November 18, 2016...
The euro may be languishing now, but it could well rebound substantially over the course
of a typical five - or seven - year
corporate bond term, especially against emerging markets currencies that are
on slippery footing themselves.
The yield
on the 10 - year Treasury
bond climbed above 3 % for the first time since 2014, but
of greater concern to many market participants were remarks in major
corporate earnings reports suggesting that business conditions had likely hit their peak and were poised to deteriorate going forward.
And
on the list
of possible investments are also high yield
corporate bonds and, perhaps, some emerging market sovereign
bonds.
In recent months, the yield
on US
corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the yield
on government debt, dropping within striking distance
of the lows seen post the 2008 financial crisis.
Government or
corporate debt instruments (
bonds) will pay you interest
on the amount you lend for the lifetime
of the
bond.
A deepening and widening
of the nascent
corporate bond market in India is
on track, following reforms by the Reserve Bank
of India aimed to draw in foreign and small investors.
Bank crisis, poor response to the crisis, misuse
of leverage, bear market, this time is different, the
bond market not functioning properly, enormous
corporate failures and so
on.
With the exception
of the very front end
of the yield curve, Canadian government
bond yields declined, as did spreads
on investment grade
corporate bonds.
Apart from development banks and frequent borrowers
on the lookout for ways to tap new investors, most
corporates saw neither the need nor the advantage
of issuing
bonds whose proceeds must be tied to environmental projects.
The continuing low level
of government
bond yields has supported the search for yield that has been evident over the past couple
of years, with the spread between yields
on US government debt and yields
on both
corporate and emerging market debt remaining around historical lows over the past three months (Box B).
In the November 2017 version
of their paper entitled «
Bonds, Stocks, and Sources
of Mispricing», Doron Avramov, Tarun Chordia, Gergana Jostova and Alexander Philipov investigate drivers
of U.S.
corporate stock and
bond mispricing based
on interactions among asset prices, financial distress
of associated firms and investor sentiment.
«Starting in late 2014, overseas buyers began a US
corporate bond shopping spree, adding $ 11.5 billion a month,
on average, over 13 consecutive months, taking down roughly 35 %
of net supply
of US issuer paper,» Melentyev writes.
With the UK economy gradually picking up pace and inflation rising
on the back
of a weaker currency, the UK's central bank may finally go ahead with a rate hike for the first time in a decade, although it is widely expected to leave the monthly government and
corporate -
bond purchases untouched at # 435 and # 10 billion respectively.
We all know that the massive reduction in dealer inventories and the cost
of capital has had a huge negative impact
on liquidity in the
corporate bond market.
For example, one source found that,
on average, high - yield
corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) trades millions of shares
corporate bonds trade fewer than half the days each month; meanwhile, the iShares iBoxx $ High Yield
Corporate Bond ETF (HYG) trades millions of shares
Corporate Bond ETF (HYG) trades millions
of shares each day.
Yet we believe another milestone is
of far greater significance to investors: Yields
on short - term U.S. investment grade (IG)
corporate bonds also hit 3 % — an eight - year high.
As seen in prior cycles, changes in short - term interest rates alone had yielded little effect
on financial conditions, as buoyant risk sentiment strengthened equities,
corporate bonds, as well as various forms
of «esoteric» investments.
The BAA spread refers to the yield
on corporate bonds above the rate
on comparable maturity Treasury debt, and is a market - based estimate
of the amount
of fear in the
bond market.