Sentences with phrase «other bond prices»

Not exact matches

U.S. government bonds serve as a benchmark against which other bonds are priced — especially the Canadian variety, given the close ties between the two economies.
The biggest losers were energy (XLE), consumer staples (XLP) and materials (XLB), all down more than 7 percent amid riding bond yields — which makes dividend stock yields less attractive and overrode other factors, like stronger oil prices and a weak dollar.
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.
Bond yields spiked, and prices for a number of other financial assets that had benefited from expectations of ongoing asset purchases by the Fed dropped precipitously, not just in the United States but in almost every other country.
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 Fed.
To some extent, the prospect of rating downgrades has already been priced into recent bond auctions by Italy, Spain and other countries.
Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market.
This was the lesson taught by William Petty in the 17th century and used by economists ever since: The market price of land, a government bond or other security is calculated by dividing its expected income stream by the going rate of interest — that is, «capitalizing» its rent (or any other flow of income) into what a bank would lend.
Bonds are subject to market, interest - rate, price, credit / default, call, liquidity, inflation, and other risks.
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.
On one side of the equation we have rising commodity prices, and on the other side we have falling bond yields.
A repo is a contract between two counterparties where one agrees to sell a bond to the other and repurchase it at a specified price at some date in the future.
But, over time, the longer central banks create liquidity to suppress short - run volatility, the more they will feed price bubbles in equity, bond, and other asset markets.»
In general, they may seek to take advantage of market inefficiencies such as pricing differences and relative discrepancies between securities such as stocks and bonds, technical market movements, deep fundamental valuation analysis, and other quantifiable trends and / or inconsistencies.
If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than face value, since other investors are willing to pay a premium for a bond with a higher interest payment.
An unusually high yield relative to similar bonds is often an indication that the market is anticipating a downgrade or perceives that bond to have more risk than the others and therefore has traded the bond's price down (thereby increasing its yield).
Income earned on bonds is so low that it's difficult to offset the price declines when rates rise (remember interest rates and bond prices are inversely related, so as one rises the other falls).
Bonds are subject to market, interest rate, price, credit / default, liquidity, inflation and other risks.
The elitists have no problems whatsoever with stratospheric stock and bond prices; 5,000 year low interest rates; $ 450 million Da Vinci's; $ 250 million private homes; $ 50,000,000 annual salaries for circus masters, whose role in keeping the masses distracted and dumb is vital; $ 1.9 million Aston Martins; $ 100,000 Air Jordan sneakers, or any of the other prices that have now gone into outer space.
So in addition, the Fund periodically hedges its exposure to those market fluctuations, based primarily on the status of valuations and market action (price behavior, trading volume, breadth, industry action, and other asset types such as bonds, commodities, and so forth).
Bond prices change because the interest rate paid on other bonds and loans changes while the individual bond's rate doesn't chaBond prices change because the interest rate paid on other bonds and loans changes while the individual bond's rate doesn't chabond's rate doesn't change.
Other examples are the broad US stock market, the stocks of companies involved in social media and / or e-commerce, the market for junk bonds, and a group of junior mining stocks where just the hint of a possible discovery has led to spectacular price gains and market capitalisations that bear no resemblance to current reality.
That lower risk to payment usually helps high - yield bond prices not fall as much as other bonds.
An increase in rates will still decrease the price of high - yield bonds but not as much as with other bonds because high - yield bonds follow the economy more closely.
As I emphasized last week, «While we're already observing cracks in market internals in the form of breakdowns in small cap stocks, high yield bond prices, market breadth, and other areas, it's not clear yet whether the risk preferences of investors have shifted durably.
These fears drove losses in the market prices of bonds in Italy, Greece and other troubled European countries.
How are we to think about the message of bond prices when the U.S. Federal Reserve, and other central banks, have literally bought trillions and trillions of dollars of them?
On the other hand, if interest rates decrease then the bond's price will increase.
High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.
Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.
So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.
(For example, a bond paying 4 % typically fetches less when other, similarly situated bonds are paying 5 %; the market is usually smart and fast enough to price that 4 % bond to yield 5 %.)
So now bond and stock prices move opposite of each other.
It was observed that prices of other risk assets, such as emerging market stocks, high - yield corporate bonds, and commercial real estate, had also risen significantly in recent months.»
A key sign: Prices for government bonds of other heavily indebted eurozone countries — such as Spain and Italy — are not suffering in sync with Greek bonds, as they did before.
the last couple contacts I had actually suggested short term bond funds in preference to other options, since they are not subject to this strong down price pressure if this pressure or bubble is to blow.
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These models are currently used by the insurance industry in underwriting flood and wind insurance products, by the finance industry in pricing catastrophe bonds, and by local officials in coastal communities in preparing for and responding to hurricanes and other coastal storms.
Although recently rising prices for stocks, high - yield bonds, commodities and other riskier assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.
Remember, as bond yields rise, bond prices fall, as do the prices of bond proxies such as utilities, REITs and other high - yielding stocks.
The recent steep decline in yields have pushed bond prices up resulting in Puerto Rico out performing the rest of the municipal bond market and other bond market segments so far this year.
So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.
Although other factors may affect them, bond prices are often closely tied to interest rates.
They offer higher yields than interest bearing cash accounts while still offering some safety, since they mature within shorter time periods relative to other bond variants, and have prices that are less affected by interest rate fluctuations.
(For example, a bond paying 4 % typically fetches less when other, similarly situated bonds are paying 5 %; the market is usually smart and fast enough to price that 4 % bond to yield 5 %.)
You would see similar results in graphs of GDP growth, bond prices, housing starts, and virtually every other indicator of economic health.
When risky assets get very correlated with each other, and the only alternative game to play is buying high quality bonds, it is an unstable situation that portends lower risky asset prices.
A bond with a «Put option» works in exactly the opposite manner, wherein the investor can sell the bond to the issuer at a specified price before its maturity if the interest rates go up after the issuance and the investor has other, higher - yielding investment options.
Also, the relationship between interest rates, inflation, and bond prices is complex, and can be affected by factors other than the ones outlined here.
On the other hand, the price of a bond ETF can be observed on the exchange, and an investor can use that information to decide whether to buy or sell.
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