Sentences with phrase «rate of a bond i purchased»

In the U.S. markets today, stocks lost ground after minutes from the latest Federal Reserve meeting showed that officials might reduce the rate of bond purchases soon.

Not exact matches

The European Central Bank on December 3 dropped one of its main policy rates to negative 0.3 % from negative 0.2 % and said it would extend its bond - buying program, under which it creates euros to purchase debt, to at least March 2017.

That data raised a fresh round of questions about how the Federal Reserve will proceed on further cutting back on its massive monthly bond purchases, which have kept long - term rates low and encouraged a strong rally on equity markets.

The bond purchases, the third round of quantitative easing embarked upon by the Fed in the wake of the 2008 financial collapse and subsequent recession, have kept interest rates and bond yields low.

He has implemented a massive stimulus policy by cutting the central bank's benchmark interest rate to negative, keeping the 10 - year Japanese government bond yield near 0 percent in an effort to control the yield curve and stepping up the Bank of Japan's asset purchases.

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.

«At that time, even a 1 % annual rate of inflation between 2012 and 2017 would have decreased the purchasing - power of the government bond» he sold.

Yet managing a smooth transition out of the extraordinary bond purchases «could prove challenging» as both interest rates and market volatility rise.

Under that policy, the Federal Reserve has kept interest rates low and engaged for period of years in a campaign of aggressive bond purchases that have increased monetary supply and bolstered the stock market.

But with the unemployment rate, at 6.2 percent, well below its recession - era peak of 10 percent, and inflation showing no signs of falling further, the Fed has begun to trim its monthly bond purchases, aiming to end them completely by October.

By reevaluating the current bond purchase program and refusing to rule out a rate cut, the European Central Bank opened a new set of opportunities for investors.

«People purchase bond funds when they are looking for a safe way to get returns,» said Charles C. Scott, president of Pelleton Capital Management in Scottsdale, Ariz. «However, bond funds can be somewhat risky when interest rates rise, and the bond funds lose some of their principal value.»

When you purchase Treasury bonds, you get a guaranteed rate of interest.

The European Central Bank (ECB) ready to reduce its monthly bond - purchasing program sometime in early 2018, and the Bank of England (BOE) isexpected to raise interest rates in November for the first time since 2007.

The institutions are not only using the money to meet their own short - term financing needs, they are also borrowing additional money to purchase the bonds of troubled countries and earn the spread between the yields on those bonds and the much lower rate the ECB is charging them for money.

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

U.S. financial markets were little moved by Thursday's data, with attention focused on details of a ceasefire agreement between Russia and Ukraine and a surprise interest rate cut and bond purchasing program announced by Sweden's central bank.

At the time of purchase for the fund's portfolio, the ratings on the bonds must be one of the four highest ratings by Moody's Investors Services (Aaa, Aa, A, Baa) or Standard & Poor's Corporation (AAA, AA, A, BBB).

Immediate credit challenges include potential draws on liquidity associated with rating triggers embedded in the city's letters of credit (LOCs), standby bond purchase agreement (SBPA), lines of credit, direct bank loans, and swaps [Oops — banks can and should pull the plug].

They say the Fed's easy - money policies, including huge bond purchases and a seven - year period of record low rates, had diminishing effect over time and subjected the nation to side effects that could lead to serious problems in the future.

Each account will contain investment - grade taxable bonds rated BBB − or higher at time of purchase.2 The investment team will seek to maintain an overall portfolio credit rating average of A −.2 Please be aware that lower rated bonds do carry additional risk compared to higher rated bonds.

«Let's consider that U.S. 10 - year Treasury bonds have been yielding around 1.7 % for most of the year while the annual run rate of inflation is 2.2 %, thus guaranteeing a destruction of purchasing power for the holders,» Brown writes.

Monetary policy can also stimulate economic growth by reducing interest rates through purchases of government bonds.

It was problematic because many of those bonds were purchased a time when interest rates were much higher and enjoyed far fatter bond coupons than anything then available on the market.

a municipal bond that is secured by an escrow fund; the escrow fund comes from the issuer floating a second bond issue and using the proceeds from that second bond issue to purchase government obligations, typically U.S. Treasuries, proceeds from the second bond issue create an escrow fund to mature at the first call date of the first bond issue to pre-refund that issue; bond issuers will typically do this during times of lower interest rates to lower their interest costs

Many of these EE Government Savings Bonds that were purchased for me in the 1980's had an interest rate of 6 %.

As an important aspect of investing basics, bond yields are the rate of return you receive after purchasing a bond and are the accounting measurements that allow you to compare one bond with another.

The ECB has said it intends to continue bond purchases until at least September, to keep interest rates at current levels until «well past» the end of the program.

As it had announced at the end of 2016, the ECB cut the size of its monthly bond purchases from $ 80 billion to $ 60 billion in April, but President Draghi also moved to quell speculation about an increase in the ECB's deposit rate later this year, which some critics had called for, even before any curtailment of the ECB's quantitative easing program.

Also, the ECB will keep interest rates negative even as the amount of bond purchases decrease.

He said that the central bank would stick to its guidance on the sequencing of the next steps, meaning that the first interest rate increases will only start well after the end of the bond purchases.

With the UK economy gradually picking up pace and inflation rising on the back of a weaker currency, the UK's central bank may finally go ahead with a rate hike for the first time in a decade, although it is widely expected to leave the monthly government and corporate - bond purchases untouched at # 435 and # 10 billion respectively.

If the whole thing — the rises in stock prices, in corporate earnings, in the housing market, even in job growth — is driven solely by the flood of money, or whether five years of zero - interest rates and trillions of dollars in bond purchases have succeeded at getting a more resilient economic engine for the United States up and running.

Fixed income securities, such as bonds and preferred stock, subject investors to the greatest amount of purchasing power risk since their payments are set at the time of issue and remain unchanged regardless of the inflation rate.

Federal Reserve (FED): FED SOMA reinvestment is expected to end sometime after rate hike Bank of England (BOE): BOE also reinvests maturing bonds on its balance sheet with new bond purchases

When the Fed announced a new round of bond purchases, interest rates on 10 - year Treasuries did drop.

The stimulus comes in the form of a plan to hold interest rates near zero at least through mid-2015 and to buy $ 143 billion in mortgage bonds through the end of the year, and then continue the purchases as long as necessary.

And we have the ECB [European Central Bank], again, likely to tell us what their plans are and not for selling bonds back into the market, I think not at this stage for changing their interest rate policy, but again, slowing the rates of purchase of bonds.

Nevertheless, the apparent success of the ECB's policy in overcoming the threat of deflation increased speculation about a potential tightening of monetary policy, possibly even before the cessation of the central bank's bond purchases — scheduled to continue for at least the rest of the year — and in the wake of the ECB meeting pushed market estimates of the odds of a rise in official interest rates before the end of 2017 to more than 50 %.

We think the speculation about a potential future tightening of monetary policy by the ECB — whether in the form of a tapering of bond purchases or a rise in interest rates — has moved too far ahead of the economic and political realities within the eurozone.

What is the real story behind the Bank of Japan's quantitative and qualitative using program which begun in 2013 augmented with a negative interest rate policy for large scale purchases of Japanese government bonds?

As an investor's investment horizon lengthens, however, a diversified portfolio of U.S. equities becomes progressively less risky than bonds, assuming that the stocks are purchased at a sensible multiple of earnings relative to then - prevailing interest rates.

Asia's sovereign bonds will likely be less endangered by rising interest rates and less vulnerable to Western policies of financial repression, which erode the purchasing power of their citizens» savings.

At the same time, ruling out any increase in interest rates while bond purchases are scaled back, in our view, signals ECB President Mario Draghi's determination to resist any political pressure to speed up the process of normalizing monetary policy.

By purchasing massive amounts of high - risk MBS and long - term government bonds, the Fed helped lower longer - term interest rates but steered credit away from private investment, which was also impeded by stricter macro-prudential regulations.

As anticipated, the ECB held its policy rates constant with the deposit rate remaining at -0.4 % and monthly government bond purchases of $ 60bn euro, despite a slightly brighter outlook on GDP growth, which is expected to rise to 2.2 % in 2017, Mario Draghi announced during yesterday's ECB monetary policy meeting.

In order to stimulate the economy further, the central bank has engaged in quantitative easing (QE) or the purchase of U.S. treasury bonds and mortgage debt in order to drive down long - term interest rates as well.

Bernanke had pushed the central bank to drop its key short - term interest rate to near zero and purchased trillions of dollars of government bonds to lower long - term rates.

Do they wish to go down an old and trodden path with Supervisor Gromack that has taken the town to the second highest property taxes in the United States where senior citizens were to be sold out to protect the Town's reserve fund and its bond street rating, where the properety values of citizens living in the Town of Clarkstown would not be protected by implementation of a Ward System, where consolidation of purchasing functions with the County would not occur, and where systemic corruption would continue to grow as revealed by several arrests of individuals receiving compensation from the Town?

But because they're a small biotech company, with high risk of default (i.e., a high risk of not paying off their debts), they would have to pay a very high interest rate in order to make the bond attractive enough for investors to purchase it.