Sentences with phrase «other types of bonds»

Unlike most other types of bonds, typically borrowers pay back both principal and interest through monthly payments.

Pros: The ability to generate higher income as rates rise and the fact that they should not fall in price if interest rates rise, much unlike many other types of bonds.

That rate is often used as a basis of comparison for other types of bonds and interest rates.

Still, corporate bond ETFs can carry a higher risk of default than other types of bond ETFs.

The majority of the fund's holdings are corporate bonds, although it may hold other types of bonds or stocks.

The same is true across the spectrum of other types of bonds.

But their interest - rate sensitivity can be lower because they typically offer higher yields than many other types of bonds.

-LSB-...] The Most Interesting Asset Class Over the Next Decade «Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.»

Most investors prefer to invest in municipal bond to investing in other types of bond like the Treasury bond, stocks and shares.

This tax rule runs contrary to that of most investments, including other types of bonds, because the Internal Revenue Service treats tax - free instruments differently than their taxable counterparts.

This same technique is used to allocate weightings in the portfolio between other types of bonds such as corporates, municipals and asset - backed securities.

Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.

So far, I have discussed reasons why people prefer investing in municipal to other types of bonds like Treasury bond and also provided tips on how to buy municipal bonds.

Because zero coupon bonds pay no interest until maturity, their prices fluctuate more than other types of bonds in the secondary market.»

Other types of bonds may vary their payments.

These examples only look at treasury bonds, but there are other types of bonds that are more volatile and can possibly lead to better returns (or at the very least more diversified returns).

Treasury bonds are considered by most to be free of default risk, so they are the benchmark to which all other types of bonds are compared.

This is inaccurate, because there are other factors which combine with credit risk to make up the «spread premium» that other types of bonds have over treasuries.

Lesson 9: Credit Spreads — Bond investors look at the difference in yield between a treasury bond and any other type of bond as one measure of credit risk.

The reason why: Volatility is low compared to stocks, and yields are generous compared to other types of bonds.

In this article, I will mention reasons why people prefer to invest in municipal bonds to other types of bonds and also how to buy municipal bonds.

The reason why: Volatility is low compared to stocks, and yields are generous compared to other types of bonds.

While the income - generating ability of traditional bonds can be compromised in the short term, other types of bonds may retain their income - generating abilities and may help offset short - term price declines.

But munis may also offer an additional benefit — they've had a lower correlation to other types of bonds, as well.

Municipal bonds can play an important role in an investor's portfolio, offering a higher tax - equivalent yield than many taxable fixed income alternatives, and the potential for portfolio diversification to stocks and other types of bonds.

Munis provided a higher tax - equivalent yield than most other types of bonds, as of March 31, 2017.

Reinvestment risk may be greater with callable bonds than other types of bonds.

However, precisely because the risk with government bonds is so low, these bonds usually pay lower interest than any other type of bond.

Some funds consist primarily of government, corporate, high - yield, or other types of bonds.

The interest earned on bank FDs and other types of bonds are not exempted from income tax.

You'll need an in - person broker or online service to buy the other types of bonds; be sure to check for minimum investment requirements, commissions, and other fees before you start trading.

This is because the risks related to such bonds are relatively low compared to other types of bonds and is considered perfect to buy and hold until maturity.

Considered among the safest fixed - income investments, these bonds offer regular income payments and stable prices relative to equities, but offer lower interest rates and coupons than other types of bonds.