For «A» rated corporates, the spread
over government bonds of comparable maturity is currently about 100 basis points, which is noticeably wider than a couple of years ago (Graph 32).
Not exact matches
Issuing
bonds is one
of the most routine things that happens in today's financial system;
governments and companies get a sum
of money today and pay interest on it
over time, before paying back the principal at some agreed - upon future date, when the
bond «matures.»
«If they do target aggressively the 2 percent inflation target, and undertake a significant amount
of QE, that may have an impact on underlying JGB (Japanese
government bond) yields as investors become concerned
over Japan's debt,» he said.
There were a few dissents, but a majority
of the Monetary Policy Committee also opted to create # 60 billion (about $ 100 billion) to buy
government bonds over the next six months and # 10 billion to purchase corporate debt
over 18 months.
Over the past few sessions, we've seen fairly consistent rises across European government bond markets and that's spilled over to the U.S.» said Anthony Valeri, senior vice president of fixed income research at LPL Financ
Over the past few sessions, we've seen fairly consistent rises across European
government bond markets and that's spilled
over to the U.S.» said Anthony Valeri, senior vice president of fixed income research at LPL Financ
over to the U.S.» said Anthony Valeri, senior vice president
of fixed income research at LPL Financial.
«But due to the low coupons prevailing, even a gradual rise in yields will result in negative returns on a wide range
of government bonds over the coming quarters.»
«
Over the last 15 years, the difference between the five year
government bond yield and the overnight Bank
of Canada rate has been a reliable indicator
of the trend growth in the Canadian economy.
The list
of individuals and organizations losing sleep
over household debt — the
government,
bond - rating agencies, senior bank executives, economists — is long and growing.
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.
Colonial, which recently announced plans to move its headquarters to Madrid from Barcelona, where Catalonia's local
government is in turmoil
over its attempt to split from Spain, said the transaction was fully financed through a combination
of equity,
bonds and the disposal
of non-core assets.
Over 70 %
of XLB's allocation is in federal and provincial
government bonds.
The
Government of Canada 10 - year
bond yield is currently 1.4 %, which offers a real yield
of minus 0.6 % (1.4 % yield less 2 % inflation)
over 10 years.
As COO, he had full responsibility for all Portfolio Management, Investment Research and Office Operations
of the firm, designing and developing new products for the firm in the asset classes
of preferred shares and common stock, in addition to his responsibility for the firm's
Government bond portfolios under management (
over $ 1.7 billion).
Consider these risks before investing: The value
of securities in the fund's portfolio may fall or fail to rise
over extended periods
of time for a variety
of reasons, including general financial market conditions, changing market perceptions, changes in
government intervention in the financial markets, and factors related to a specific issuer, industry, or sector and, in the case
of bonds, perceptions about the risk
of default and expectations about changes in monetary policy or interest rates.
What about the argument that the equity - risk premium (the premium that investors demand
over risk - free assets such as
government bonds) has fallen close to zero because
of greater economic stability?
Government bond auctions should be permitted to fail as a means of expressing disproval over government polic
Government bond auctions should be permitted to fail as a means
of expressing disproval
over government polic
government policy choices.
estimate
of annual income from a specific security position
over the next rolling 12 months; calculated for U.S.
government, corporate, and municipal
bonds, and CDs by multiplying the coupon rate by the face value
of the security; calculated for common stocks (including ADRs and REITs) and mutual funds using an Indicated Annual Dividend (IAD); calculated for fixed rate
bonds (including treasury, agency, GSE, corporate, and municipal
bonds), CDs, common stocks, ADRs, REITs, and mutual funds when available; not calculated for preferred stocks, ETFs, ETNs, UITs, international stocks, closed - end funds, and certain types
of bonds
In addition, sovereign wealth funds — which generally diversify their portfolios to include a small portion
of alternate assets such as gold, private equity and real estate — are likely to raise their allocations following the low yield in
government bonds over the last couple
of years.
China's benchmark 10 - year
government bond yield traded just shy
of 4 percent in early December, up almost 100 basis points
over the course
of 2017.
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).
The cash yield on the iShares CDN REIT Sector ETF (TSX: XRE) is approximately 5.45 %, a spread
of less than 2 %
over the 10 - year
Government of Canada
bond, which is currently yielding 3.55 %.
It will buy $ 600 billion worth
of US long - term
bonds in the open market, close to 7 %
of all Treasury securities in public hands, or about the amount the debt that the federal
government will issue
over that time period.
As well as indicating the reductions would be concentrated on its purchases
of government (rather than corporate)
bonds, the ECB subsequently provided details
of its previously purchased securities that are set to mature
over the next 12 months.
Some
of the so - called peripheral
government bonds — for example Italy and Spain — have done well
over time.
We expect earnings growth to take
over from multiple expansion as a driver
of returns, and the decline in risk premia to largely be offset by a rise in underlying
government bond yields.
Abstracting from changes in the composition
of corporate
bond indices, spreads between yields on
government and corporate
bonds have shown a small net decline
over the past three months (Graph 48).
This reduced call by the
Government has opened up the market to private sector borrowers; issues
of corporate
bonds over the past year were the highest since 1991.
Over 2/3 rds
of BND is invested in US
government backed
bonds.
Long - Term Interest Rates — The the value
of government - issued
bonds that gain maturity
over a period
of time, generally 10 years or more.
Over the same period, 10 - year UK
government bond prices have risen nearly 6 percent while the FTSE 100 Index
of blue - chip shares is little changed, at 6278.
Are behaviors
of government, corporate investment grade and corporate high - yield
bonds over this interval similar?
The second largest body
of non-European peoples, that
of India, is loosening the
bonds by which it has been tied to the British Empire; some
of its spokesmen are demanding complete independence, and the British
Government has already promised dominion status when once the present European war shall be
over.
The suit comes after the Deputy Attorney General, Godfred Dame, in a 16 - page response to CHRAJ's enquiry in a petition brought by the Ashanti Regional NDC organizer, Yaw Brogya Gyamfi, defended the Finance Minister
over allegations that he may have been involved in a conflict
of interest situation in the $ 2.25 billion domestic
bond issued by
government.
A citizen
of Koforidua in the Eastern, Mr. Mark - oliver Kevor has dragged the
Government of Ghana and the Commission for Human rights and administrative justice to the highest court
of Ghana
over the controversial 2.25 bn dollars
bond that has hit Ghana
over the past 2 months.
I actually wasn't sure whether only debt issued
over Government bond is in the scope
of this question so I just decided to add arbitration to my answer - for the layman that is some form
of debt and proper legal advise is beyond my capabilities.
«
Over the decades, the erosion
of trust has broken down the
bonds between the
government and the people that it serves.
When set aside the expenditures incurred during the floatation
of bonds under the NDC
government, we notice a wide and unacceptable disparity which can only be the result
of massive inflation
of costs.We demand an immediate enquiry into this scandalous affair and a detailed explanation from the Finance Minister
over how these expenditures were incurred.
The National Democratic Congress (NDC) Member
of Parliament for the Keta Constituency, Richard Quashigah, is on the heels
of the Vice President, Dr. Mahamudu Bawumia, demanding an apology from him for calling the Minority ignorant
over the sale
of the domestic
bond issued by
government.
Tables
of elderly black matrons in their Sunday finest buzz with neighborhood gossip, while just a few feet away union reps pass the inexpensive red wine to their wives, and elsewhere unreserved tables
of strangers make nice with college students, entrepreneurs,
government workers — white, black, and Hispanic — all
bonding over their common hopes for the city.
Bond prices may fall or fail to rise
over time for several reasons, including general financial market conditions, changing market perceptions
of the risk
of default, changes in
government intervention, and factors related to a specific issuer or industry.
Consider these risks before investing:
Bond prices may fall or fail to rise
over time for several reasons, including general financial market conditions, changing market perceptions
of the risk
of default, changes in
government intervention, and factors related to a specific issuer or industry.
The roughly 1.7 per cent current yield on a 10 - year
Government of Canada
bond is still well below its historical average
over the past 30 years, according to Bloomberg data.
The last time I checked, they were more than a full 2 %
over Government of Canada
bond yields.
It can be estimated as a backward - looking quantity by observing stock market and
government bond performance
over a defined period
of time, for example from 1970 to the present.
CFOs, meanwhile, estimate the premium to be 5.6 %
over T - bills (U.S.
government debt obligations with maturities
of less than one year) and 3.8 %
over T -
bonds (maturities
of greater than ten years).
So, unless something truly catastrophic happens (like the US
government defaulting on its
bonds) or people in the company break the regulations (which would invovle all kinds
of serious crimes and require complicity or complete failure
of the auditors), your premiums and the contractual obligation to you would still be there, and would be absorbed by a different insurance company that takes
over the defunct company's business.
William Bengen, a U.S. researcher, has back - tested a 4 % withdrawal rate with a balanced portfolio
of U.S. stocks and
government bonds earning overall market returns and found that you would have been able to safely withdraw 4 %
of your portfolio
over any 30 - year period since 1926.
What's more, GICs pay higher yields than
government bonds: today you can build a five - year ladder with an average yield
over 2 %, with no credit risk and no chance
of a capital loss.
Consider these risks before investing: Stock and
bond prices may fall or fail to rise
over time for several reasons, including general financial market conditions, factors related to a specific issuer or industry and, with respect to
bond prices, changing market perceptions
of the risk
of default and changes in
government intervention.
Consider these risks before investing:
Bond prices may fall or fail to rise
over time for several reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk
of default and expectations about monetary policy or interest rates), changes in
government intervention in the financial markets, and factors related to a specific issuer or industry.