Sentences with phrase «rate at some maturity»

Though I'm not inclined to put much weight on projections or forecasts, the present shape of the yield curve is one that has historically been followed by a parallel upward shift in interest rates at all maturities.
With traditional bonds, it is highly likely that the interest rate at some maturity will change by 0.5 % or more every six months.

Not exact matches

If they have shorter maturities, investors will be able to reinvest their money at higher rates over time and not get locked into today's particularly low rates for long - dated Treasury notes.
Roberts, the Toronto mortgage broker, is advising all of her existing clients that if they are currently locked in mortgages at rates of 3.59 % or higher, they need to consider breaking their contracts and refinancing, depending on the penalties and time to maturity.
Majority - owned by Softbank Group, Sprint (s) has spent much of the past year looking for ways to raise money at the lowest possible rates to cover looming debt maturities of its own.
The average rate paid on short maturity loans was up 40 basis points at 6.1 percent.
Long - dated Treasury yields early Thursday trade at the highest level in nearly a month, but shorter maturities saw a slight pullback in rates, as inflation expectations rose
But longer maturities also lead to higher volatility, which is actually even higher at lower interest rate levels.
The spread on the nominal less inflation - indexed rates for both the five - and 10 - year maturities remains above 2.0 % — a sign that the crowd expects that hard data on inflation will hold at or above the Fed's target in the near term.
Some borrowers chipped away at the maturity wall by retiring their mortgages early in order to take advantage of ultra-low interest rates.
Yes, you have a maturity date with an individual bond, but this ignores the opportunity cost of investing at higher future rates in the meantime.
The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $ 50 million, have an amount outstanding of at least $ 5 million and have a maturity of 8 to 12 years.
The project may be funded at a different maturity — two - year fixed - rate funding may not be available, or the investor may be more comfortable with a variable rate.
a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that usually includes interest; they have higher price volatility than coupon bonds as a result of interest rate changes
Low coupon rates mean that investors get almost all of their cash flow at maturity.
«You think about the second half of the year, Treasury has a ton of debt to get out there, and pretty quickly it needs to ramp up issuance sizes even more than today» in maturities of five - years and greater, Mike Schumacher, head of rates strategy at Wells Fargo Securities, said on Bloomberg TV.
This way, if a bear market occurs, you have a year of cash becoming available at the maturity date so that you do not have to sell stocks, and in a bull market you can buy new bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high quality bonds give versus cash or CDs.
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.
Entities in smaller markets typically issue foreign currency debt in offshore bond markets because they can issue larger, lower - rated and / or longer - maturity bonds than they can (at least at comparable prices) in their domestic market.
High - yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.
Debt deals typically offer a fixed rate of return throughout the loan's term and a return of principal at maturity of the loan.
Though the weighted - average maturity of Treasury debt is currently longer than normal, the average is still only 5.8 years, and half of the debt will have to be rolled over by 2019, at whatever interest rates emerge in the interim.
Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.
You may say, «so what if rates rise — I still get my money back at maturity
However we do think US monetary policy will continue to be supportive of higher gold prices, with the Fed keeping rates at zero and the TIPS yielding negative rates for multiple maturities (Please see our previous article: The Key Relationship between US Real Rates and Gold Prirates at zero and the TIPS yielding negative rates for multiple maturities (Please see our previous article: The Key Relationship between US Real Rates and Gold Prirates for multiple maturities (Please see our previous article: The Key Relationship between US Real Rates and Gold PriRates and Gold Prices).
And while principal value can fluctuate on an interim basis as interest rates wax and wane, capital, at maturity — when one lends to investment grade entities — is rarely in peril.
While the coupon interest rate you receive on TIPS stays constant, the principal, (the amount you would get back at maturity) adjusts up and down with inflation.
The graphic below shows current average interest rates paid for different categories of bonds at different maturities.
McDonald's issues $ 50 million in bonds with a maturity of 30 years The bonds have a face value (cost) of $ 1,000 and an interest rate of 3.5 % McDonald's pays investors 1.75 % in interest, twice a year for 30 years At the end of 30 years, McDonald's pays the $ 50 million back to investors at $ 1,000 for each bond they hoAt the end of 30 years, McDonald's pays the $ 50 million back to investors at $ 1,000 for each bond they hoat $ 1,000 for each bond they hold
Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).
This allows investors to eliminate interest rate risk at their investment horizon by simply holding a bond until maturity.
The Barclays U.S. Credit Index is the credit component of the Barclays Capital U.S. Aggregate Bond Index, which is a broad - based bond index comprised of government, corporate, mortgage and asset - backed issues, rated investment grade or higher, and having at least one year to maturity.
After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time.
There is some principal amount, at some interest rate and a maturity date.
If the ratio is at 100 %, it indicates that the yield on a AAA - rated municipal bond is the same as a Treasury security of the same maturity.
As a bond moves towards its maturity over time, its interest rate sensitivity gradually declines, eventually to zero at maturity.
For example: If I'm a U.S. - based investor and I buy a BMW bond and do not hedge the currency, every single coupon I receive, including the repayment at the bond's maturity, will be subject to the FX rate that prevails at the time.
It is important to note however, that at times, abnormal economic factors can cause the yield curve to «invert» — i.e., short - term rates rise above longer - term rates, or to be «flat» across the maturity spectrum.
Beyond their example, we can look at the divorce rate, the pornography epidemic, affair trends and conclude that simply being married does not guarantee anyone Christian maturity.
Compared to Lemar though, he is probably less of a gamble, considering his maturity, but could also be a much more economical target as he is # 35m - rated while Lemar has been valued at anything from # 45m to # 80.
Taste buds also mature at different rates and it could be something as simple as a child's taste buds aren't mature enough to handle a particular substance (this is biological and very different from a child's emotional maturity being ready to handle the new items).
This means that kids achieve different levels of physical, cognitive, and emotional maturity at different rates.
Although data for older boys is less extensive, it is reasonable to conclude that removing body checking would reduce injury rates and severity at all ages, particularly benefitting 13 - and 14 - year - olds, who may be more vulnerable because of wide discrepancies in physical maturity.
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.
«The defendants are proposing to issue a fixed rate Bond of N50 billion with maturities of seven years or longer, on behalf of the government and people of the state at the earliest possible time.
The fundamental flaw with such tests is that, because children grow at widely different rates, skeletal maturity shown on X-rays — which is used to gauge age — doesn't necessarily match chronological age.
The yield is the calculated real interest rate of the bond, if it is bought at today's bid price and kept until maturity.
Does quality affect growth rate and age at maturity in species with indeterminate growth?
I am 17 and I go to school but my maturity level is at a rate of a 30 year old woman.
Since it has been proven that men mature at a slower rate then women, it only makes sense that ladies would look to men that are older to find that maturity and adult behaviour that they are searching for.
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