Sentences with phrase «only bonds rated»

For instance, select only bonds rated «A» or better.

Not exact matches

Only two years ago they were rating AAA all the toxic bonds that created the crisis,» said Greek Prime Minister George Papandreou, adding that the downgrade was executed «not because of what Greece is doing but because of the decisions being taken by the EU that are not considered as going far enough.»

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.

Institutional investors (such as pension funds) routinely insist on holding only highly - rated securities, so a downgrade can force them to sell that issuer's bonds.

Ultimately these green bonds will only truly be successful if they allow the province to finance transit projects at a lower interest rate than would otherwise be the case.

Canada's DBRS is the only credit rating agency willing to give Portugal an investment grade, which allows the European Central Bank to buy Portuguese government bonds.

The Fed's latest round of bond buying and its plan to keep rates super-low into 2015 will likely provide only modest help, said David Jones, chief economist at DMJ Advisors.

The only sectors not participating are interest - rate sensitive REITs and utilities, which are bond proxies.

Timmer: Yeah, so last August which was a key inflection point for the market — because at that point, nobody was expecting tax cuts anymore and the 10 - year Treasury had fallen to 2 %, and the bond market which of course is always pricing in the potential future, was pricing in only one more rate hike over the subsequent two years.

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.

Not only isn't there anywhere near enough bank capital in the US to supplant securitization, it is difficult to conceive that the universe of «rates» buyers will become mortgage credit buyers or move over to covered bonds (which default to the issuing bank's credit ratings), at least not at the same price levels and in the same size.

These corporate fixed - income instruments pay a dividend that is taxed at a more favourable rate than regular bond interest, but you only benefit from this if they are held outside of a registered account.

Only a year ago, during the height of the rising interest - rate fears tied to Fed tapering, investors were exiting bond funds in droves.

After World War II, which is the only example I know of, it wasn't until like 1950 where they let 10 - year bond rates go.

And with interest rates at all - time lows and stocks at all - time highs, there are many who expect that not only will a 60/40 portfolio deliver below average returns, but that bonds might not provide the protection they once did.

The institutions are not only using the money to meet their own short - term financing needs, they are also borrowing additional money to purchase the bonds of troubled countries and earn the spread between the yields on those bonds and the much lower rate the ECB is charging them for money.

The only shortcoming is that (I assume) that the bonds you are using are long duration bonds, which are much more volatile and suffer deeper losses when interest rates rise, compared to shorter duration bonds.

If the average annual rate of inflation over the next 10 years is 4 %, then the real value of those bonds at maturity is only $ 6,755,641.69.

For example, when the Fed raised rates from 1 percent to 5.25 percent from June 2004 to June 2006, traditional bonds returned only 2.9 percent.

: A classic point of contention for risk parity is that interest rates, in general, are too low, and that while the approach may have performed well in the past, it is only because of an historic bond rally, which is unlikely to happen again.

Unfortunately, the only cure for low returns in bonds is higher interest rates.

Bluford Putnam, managing director and chief economist at CME Group, the world's biggest futures market operator, agreed that the Fed's near - zero interest rates and bond purchases helped stabilize financial markets and bolstered the economy — but only for a while.

Corporate valuation, equities, bonds and interest rates, and mergers and acquisitions are only some of the areas covered here in detail and presented in sample interview questions and cases with easy - to - follow charts and frameworks.

By contrast, the G bonds that appear on the CB balance sheet in the case of QE are only an internal funding mechanism from the CB to the government, where the bond rate is the «transfer price».

The dollar bond market has turned cold for Indian firms after a record 2017, with rising global interest rates, geopolitical concerns and market volatility prompting would - be financiers to demand either a higher yield or invest only in short - term paper maturing in two years.

Various quantitative - easing options focused on government bonds were shown to governors on Jan. 7 in Frankfurt, including buying only AAA - rated debt or bonds rated at least BBB minus, the euro - area central bank official said.

«In our opinion, the only thing that is guaranteed with a bond that has a lower interest rate than the rate of inflation is impoverishment.

Because it is impossible to know when an issuer may call a bond, you can only estimate this calculation based on the bond's coupon rate, the time until the first (or second) call date, and the market price.

We see interest rates and bond yields rising only gradually in the sustained expansion.

As interest rate soared in 1987, T - Bonds began steeply falling from March through October, when Uncle Sam's Treasuries fell 26 % (truly an unprecedented plunge in only 10 months.

He said that the central bank would stick to its guidance on the sequencing of the next steps, meaning that the first interest rate increases will only start well after the end of the bond purchases.

Bond ratings go all the way down to CCC - though they are only shown to A in the graphic below.

All this currency intervention from central bankers is not only causing stocks to rise, but bond prices have risen as their yields fall in response to news that central bankers are going to be buying bonds in an attempt to lower interest rates further still.

The private sector economists are surveyed for only a selective number of aggregate economic and financial indicators: real gross domestic product (GDP) growth; GDP inflation, nominal GDP;, the 3 - month treasury bill rate;, the 10 - year government bond rate;, the unemployment rate; the, consumer price index; the exchange rate (US cents / Cdn $); and finally, and U.S. real GDP growth.

High yield bonds have only been around since the 1980s, so they've never really experienced a sustained rising rate environment.

The bottom line of Draghi's answers was that the ECB would only buy government bonds rated lower than investment grade if the countries are in a bailout programme and the programme is not in a review period.

The only confusing part to remember about mortgage rates is that the move in the opposite direction of mortgage bond prices.

While your main points will likely be similar, I agree with Clark that the Barclays US Aggregate Bond Index versus long Treasuries is something of an apple to oranges comparison, since the Barclays US Aggregate Bond Index not only includes includes Treasuries, but also government - related and corporate securities, MBS (agency fixed - rate and hybrid ARM pass - throughs), ABS and CMBS (agency and non-agency).

Instead, the quantity of reserves has become so much larger than would be required to maintain a Funds Rate of only 0.25 % that even a tiny increase to 0.50 % would necessitate a $ 1 trillion + reduction in reserves and money supply, which would crash the stock and bond markets.

Central bank rate setting and bond buying is only part of the picture.

It doesn't help that 10 - year bond yields are still lower than the prospective operating earnings yield on the S&P 500 (the «Fed Model»), not only because the model is built on an omitted variables bias (see the August 22 2005 comment), but also because the model statistically underperforms a simpler rule that says «get in when stock yields are high and interest rates are falling, and get out when the reverse is true.»

It is true Catalonia has regional bonds, however, in comparison to the debt offered by the regional banks, it is much less liquid and it offers only a marginally higher yield that doesn't correctly reflect the riskiness of the bond or the rating.

Figure 2 shows that during past rate - hike cycles, muni bonds not only continued to generate positive performance over the entire course of the rate - hike cycle, but also managed to generate positive returns immediately after each rate hike.

The Standard & Poor's U.S. - Issued High Yield Bond Index is down only 1.73 percent in the fourth quarter, as expectations of a Federal Reserve rate hike rose.

At the rate he's going, Bonds, who ended last week on an 0 - for - 15 slide to fall from.490 to.379, will get only 334 at bats this season.

But the reaction of the bond markets will only be half the story for the chancellor if — as expected — Britain loses its AA credit rating.

Why is it OK for them to take 0.5 % interest rate loans from the Bank of England only to use it to buy three per cent ten - year Treasury bonds?

There is only one county statewide with a higher S&P bond rating.

The bond owners (at least the short - sighted ones) don't care about that ratio, only that their interest and / or maturity has been paid; and thus the rating / validity of the debt is sound.

«In stark contrast, under Mayor Lovely Warren's leadership our city has seen an unprecedented period of growth and progress with construction and investment, not only throughout downtown and our center city, but more importantly throughout our neighborhoods as well... Mayor Warren's careful fiscal stewardship has resulted in two bond rating upgrades for the City, she has brought hundreds of millions of dollars in investment by the state and federal governments along with progressive policies always focused on bringing more jobs, safer more vibrant neighborhoods and better educational opportunities to every resident of Rochester.»