Sentences with phrase «rate than a bond»

Plus, in non-registered accounts, those dividends are taxed at a lower rate than bond interest.

Interest rates generally fluctuate over time, which means the new bonds that the fund is buying are likely to have different interest rates than the bonds being replaced.

Risk factor analysis shows that equity market sectors that act like «bond proxies» may be more sensitive to changes in interest rates than bonds themselves.

Dividends are generally taxed at a more favorable rate than bond interest, plus — and this is the biggest selling point — healthy companies tend to raise their dividends over time.

CDs typically offer lower rates than bonds, but higher rates than traditional savings accounts.

This is because you have to discount the value of your bond to compete against newer bonds that pay a higher interest rate than your bond.

Now, newer bonds have a higher rate than your bond, so if you want to sell your bond, you'll have to lower the asking price.

There are several reasons your bond may have a different rate than a bond purchased today.

Risk factor analysis shows that equity market sectors that act like «bond proxies» may be more sensitive to changes in interest rates than bonds themselves.

Not exact matches

Fill the bulk of your portfolio with a combination of high - rated bonds (weighted toward corporate, rather than government, debt) and high - quality, dividend - paying equities, and you likely won't take a hit.

Ultimately these green bonds will only truly be successful if they allow the province to finance transit projects at a lower interest rate than would otherwise be the case.

In a client note on Thursday titled «Yanking down the yields,» the interest - rates strategist projected that bond yields would be much lower than the markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.

«The power of moral suasion is greater than we might think,» says Brenda Lum, managing director of Canadian financial institutions with bond - rating agency DBRS.

Decades of falling interest rates has taught individual investors that bonds are safer than stocks.

Bond yields rose to the highs of the day as Federal Reserve Chair Jerome Powell laid out a case where the Fed could raise rates more than it has forecast.

It's similar to the U.S. government's quantitative easing, but rather than trying to buy government bonds to push interest rates lower — rates are already at zero — the goal is to push the yen down and combat chronic deflation.

Bond yields rose after Fed Chair Jerome Powell laid out a case where the Fed could raise interest rates more than it currently forecasts.

The move is a novel way for the San Mateo, Calif., company to finance the enormous cost of installing panels on thousands of roofs — a typical residential system costs $ 25,000 — while appealing to retail investors who are on the hunt for better rates of return than they can find in savings accounts and government bonds.

While Fink is right to point out that low interest rates are putting a large burden on those of us trying to save retirement, he does not address the fact that central banks aren't primarily responsible for the fact that bonds of all types are yielding less today than we're used to.

The caveat with this method is that bonds and annuities typically come with long - term interest rates, and from a wealth perspective, that's more dangerous than short - term ones.

Japan has already lost its AAA status, and Fitch Ratings recently warned it might downgrade the country's sovereign debt if it issued more than the planned ¥ 44 trillion in bonds next year.

These corporate fixed - income instruments pay a dividend that is taxed at a more favourable rate than regular bond interest, but you only benefit from this if they are held outside of a registered account.

With interest rates so low, stocks are better than bonds, but the Canadian market, he says, should see mid-single-digit returns.

«Since... 2011 we have created more than 512,000 private - sector jobs, implemented pro-business tax reform and saved millions of taxpayer dollars by maintaining Georgia's AAA bond rating.»

The bond market is betting the Fed could have to raise interest rates more than the three times it has forecast.

The simplified explanation for this aberrant investing disaster was a dramatic rise in interest rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in 1981.

Investors are set to snap up the bonds with an interest rate of less than 3.4 %, the Financial Times reported on Thursday, or about half the rate Sprint would have had to pay if it issued the bonds without any backing.

Yet while the Fed has eased policy to lower joblessness and raise inflation in the wake of the 2007 - 2009 recession, central banks such as the BoE have also launched accommodative bond - buying programs despite higher - than - desired inflation rates.

California's bonds are rated lower than those of any other state, but are still investment grade, and investors are still buying.

In these cases, the difference between the bond's issue price (the discounted rate) and its face value would be considered tax - exempt income rather than capital gains.

While it's still not known when interest rates will go up and by how much, what we do know is that the bond market is at greater risk to rising interest rates than at any time in recent history.

Treasury yields retreat on Thursday by falling rates in European government bonds after eurozone inflation data came in weaker than expected.

For example, if you hold a bond paying 5 % interest and market rates rise to 6 %, investors would need to pay less for your bond to be compensated for the lower than market rate.

If interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returned.

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

FLIA will invest in fixed - and floating - rate bonds from the full range of governmental and corporate issuers representing developed markets other than the U.S..

In a zero - interest rate world (Figure 7), these provide yields that are much higher than those found in more conventional investments like U.S. Treasury bonds or money market accounts.

As Russ Koesterich points out, cash typically produces lower returns than stocks or bonds, and once you invest for both inflation and taxes, average long - term rates are negative.

BERLIN — Throughout the month, countries caught in the eye of the European financial storm, including Italy, Spain and France, have repeatedly defied expectations, selling big batches of bonds to the public at interest rates significantly lower than investors demanded at the height of the euro crisis late last year.

Because most wealthy Chinese seem to think about RMB in terms of USD or Hong Kong dollars, it is the fear that any depreciation of the RMB against those two currencies (the Hong Kong dollar is pegged to the USD through a modified currency board) greater than the couple of percentage points interest rate differential would yield less than equivalent USD or Hong Kong dollar bonds.

Active bond managers try to hold shorter maturities than their benchmark when rates are rising, and longer maturities when rates are falling.

The fund may invest in asset - backed («ABS») and mortgage - backed securities («MBS») which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other bonds.

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

Despite the mainland's capital controls, its bond market joined the global market ructions on Thursday after the U.S. Federal Reserve surprised by saying it expected to hike interest rates three times next year, rather than the previously forecast two hikes.

As a percentage of GDP, more than half of the outstanding sovereign bonds in the developed world originated from countries or regions where negative interest rate policies are in place, primarily representing bonds from the euro zone and Japan.

They're not quite as popular today.Junk bonds carry high rates of return but they're as risky or riskier than stocks are.

In practice, a 10 - year bond yielding 2 % is more rate sensitive than a 10 - year bond yielding 6 %.

Since changes in interest rates impact bond funds differently than bonds and CDs, estimates of price sensitivity may be less accurate the larger the shift in interest rates.

Thus, many emerging markets» growth rates in the next decade may be lower than in the last — as may the outsize returns that investors realised from these economies» financial assets (currencies, equities, bonds, and commodities).

So if investors expect short - term rates to be zero for another 4 years, it would be reasonable for stocks and bonds to be about 16 % higher than historical valuation norms.