Sentences with phrase «particular bond defaults»

The diversification you get in ETFs and index mutual funds helps to limit the risk of a big hit if a particular bond defaults.

Not exact matches

Generally, the market interest rate for any particular term of bond is represented by the yields on government bonds, as these are viewed as highly liquid and of very low default risk.

Many factors affect the value, or price, of a particular bond, but the two big influences are 1) future inflation expectations (as reflected in general interest rates) and 2) the risk of Corp A «defaulting» — not meeting its obligation to make each year the $ 50 interest payment and, eventually, repaying the $ 1,000 bond principal.

In particular, she noted her expectations for the future of the municipal bond market which included hundreds of billions of dollars in defaults within the next five years.