Sentences with phrase «rate bonds offer»

Variable - rate bonds offer a fixed rate determined by market rates for the first six months following issuance.
Finally, fixed - rate bonds offer a fixed interest rate for the total duration of the bond, but they can not be redeemed before maturity.
Fixed - rate bonds offer periodic payments of fixed amounts.

Not exact matches

The interest rate on 10 - year bonds was 1.79 % at the end of 2014 — about half as much as the federal government had to offer to get investors to buy its debt a decade ago.
Late last month, chemical company Altice had to cut back a bond offering and increase the interest rate to 11 % on a portion of a multi-billion dollar deal.
And while its credit rating is damaged, the successful US$ 1 - billion bond offering in June shows Iceland is not a total pariah.
However, rates have retreated from over 8 percent in the last several weeks, and the credit risk of high - yield bonds can offer some diversification from the interest - rate risk of a portfolio of Treasury bonds.
Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.
We believe that long - term tax - free municipal bonds that offer near - 4 % yields (a 6.62 % taxable equivalent at today's top rate and 6.15 % even at the new proposed top rate of 35 %) still offer superior value.
Neither argument holds right now for holding any tactical cash, especially with no reasonable prospects for a near - term rate increase and the yield differential offered by bonds over cash right now.
Although the retailers have been negotiating with bond holders, who have accepted significant discounts and offered longer terms, the basic financials are enough for Moody's to rate 13.5 percent of the retailers it follows as a Ca or Caa credit risk.
A carry trade is typically based on borrowing in a low - interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest or deploying proceeds into assets — such as stocks, commodities, bonds, or real estate — that are denominated in the second currency.
The past two calendar years have offered a pretty clear view of the type of interest - rate risk in bond funds.
Many funds companies, including Vanguard and Fidelity, offer short - term bond funds that will likely outperform during a rising interest - rate period.
The $ 1.2 trillion market for U.S. junk bonds yields about 6.6 percent, double what's offered by higher - rated company debt, according to Bank of America Merrill Lynch index data.
HYZD is one of several interest - rate - hedged bond funds offered by WisdomTree to address uncertainties in interest rates.
ST gov» t bonds offer you the safest investment from a default risk perspective, but you earn a lower rate of interest on them.
Instead, I believe it's prudent to extend allocations in other bond sectors and exposures that offer similar interest - rate sensitivity to Treasuries, but with more compelling investment cases.
As ninety percent of the returns are derived from the starting interest rate, it's fair to assume that bonds will indeed offer measly returns going forward.
And newly issued bonds tend to offer higher interest rates to make them more attractive to buyers.)
As yields across the world continue to be pushed lower by highly accommodative monetary policies, international investors are fleeing low (or negative) rates offered by many DM government bonds.
Ratings agencies research the financial health of each bond issuer (including issuers of municipal bonds) and assign ratings to the bonds being oRatings agencies research the financial health of each bond issuer (including issuers of municipal bonds) and assign ratings to the bonds being oratings to the bonds being offered.
Lower - rated bonds generally offer higher yields to compensate investors for the additional risk.
While Treasury bonds offer the purest exposure to changes in rates, other asset classes have high sensitivity too.
Will dividend investors continue to purchase suddenly volatile, high - yielding strategies when bonds offer higher rates and less risk?
In exchange for a basket of 51 % global stocks, 26 % bonds, 13 % cash and 5 % each in commodities and real estate — much like a portfolio Mr. Salem oversees — the institutional trading desk at one major investment bank was willing to offer a guaranteed rate, after fees and inflation, of 1 %.
Even so, floating - rate loans offer investors certain protections that conventional bonds don't.
Floating - rate loans have yields and volatility similar to high - yield corporate bonds, with one major difference: As their name indicates, their interest rates «float,» adjusting periodically based on a benchmark rate, typically the London Interbank Offered Rate (LIBrate loans have yields and volatility similar to high - yield corporate bonds, with one major difference: As their name indicates, their interest rates «float,» adjusting periodically based on a benchmark rate, typically the London Interbank Offered Rate (LIBrate, typically the London Interbank Offered Rate (LIBRate (LIBOR).
Certain types of bonds offer a degree of protection from rising inflation and interest rates, though they come with their own risks.
The trade - off is that longer - term bonds usually offer higher rates to start out.
High - yield bonds, those from companies with weak financial positions and poor credit, are offering rates as high as 9 % for 30 - year terms but also offer the risk of bankruptcy before the bond matures.
Highly rated companies that are financially strong and have massive amounts of cash on their balance sheets — think Microsoft, Exxon, etc. — can typically offer bonds with lower yields since investors are confident that the companies won't default (i.e., miss interest or principal payments).
Furthermore, with US equity markets reaching new highs and the interest - rate environment looking negative for bonds, we believe investors will seek out product offerings from alternative managers that can offer access to alpha2 across alternative asset classes.
Take a look at the latest rates for investments and loans offered by Edward Jones including bonds, guaranteed investment certificates (GICs), loans, and more.
Bonds and bond funds are typically classified by a credit rating which offers insight on their capital structure and ability to make timely payments.
Despite their diversification rule, dollar - denominated high - grade bonds offer low yields and a great likelihood of capital losses this year as the Federal Reserve (Fed) raises interest rates.
As he reported the decision to keep bond rates at 0.75 percent, Draghi refrained from offering investors reassurance about the Spanish bailout.
This is designed to offer investors the best of both worlds: The diversification benefit of a traditional bond mutual fund and the declining interest rate risk sensitivity of an individual bond.
I hope the rates increase gradually, but less than those being offered on this bond, so that the bond reaps a premium.
Variable annuities, sometimes called shield annuities, are contracts that offer a rate of return depending on the stock, bond, or money market investment.
RatesMatch offers leading technology for specialist execution services across a breadth of interest rate derivatives and US Treasury bond markets.
Indeed, the bonds of Generalitat de Catalunya 4.22 % 2035 have a rating of B + / BB with negative outlook from S&P and Fitch and offer an indicative yield of 3.5 %, while Sabadell 5.625 % 2026 with a rating of Ba3 / BB offers a yield of approximately 3 %.
In April, BGC Partners» money broking joint venture in China, China Credit BGC, is granted product licenses approval by the People's Bank of China to offer interest rate swaps, bonds and interbank cash deposits products to Chinese and foreign banks in China.
Very best - acquire bonds offered by Castle Trust generate returns from house rates — but is your capital protected?
RatesMatch GFI's RatesMatch platform offers specialist execution services across a wide range of interest rate derivative and US Treasury bond products.
Unfortunately, we were far from unique in holding this opinion, and expressions of interest kept pouring in such that the underwriters were able to both increase the size of the bond offering and reduce the interest rate to 4.25 %, at which level we had no desire to participate.
It is true Catalonia has regional bonds, however, in comparison to the debt offered by the regional banks, it is much less liquid and it offers only a marginally higher yield that doesn't correctly reflect the riskiness of the bond or the rating.
But premium bonds could actually offer a good deal because they may come with higher coupon rates and greater yield in the long run.
They are riskier than bonds issued by higher rated investment - grade companies, so they often offer higher yields.
These bonds offer higher yields but are coupled with a higher risk of default, as signified by these companies» lower credit ratings.
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