Sentences with phrase «rating of each bond»

I pour the morning cup of mud, schlep out to the stoop to get my paper, and open my WSJ to learn that the yield curve is awfully flat (i.e., the difference between the interest rates of bonds of different maturities is low).

A downgrade in the credit rating of a bond by the credit agencies can affect bond performance as well if institutional investors are forced to sell because of restrictions on the credit quality of the bonds they're able to hold.

Yields can be measured in a number of ways, including coupon yield, or the stated interest rate of the bond, and yield to maturity, which is the total rate of return when an investor holds the bond to maturity.

Having said that, the credit rating of the bonds would suffer.

The yield is the calculated real interest rate of the bond, if it is bought at today's bid price and kept until maturity.

When the reset period hits, the interest rate of the bond changes if the benchmark has changed.

You want to look into the credit rating of each bond fund as well as the average maturity of the underlying bonds.

Smart investors know to look beyond the nominal or coupon rate of a bond or loan to see if it fits their investment objectives.

I don't think turnover rates mean as much for bonds as equities, but should I even be looking at turnover rates of bonds?

Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond's issuer, insurer or guarantor, may affect the bond's value.

The higher the rating of the bond issuer, the lower the rate of interest required by the purchasers.

The coupon interest rate of the bond (multiply this by the par or face value of the bond to determine the dollar amount of your annual interest payments)

Thus, as the quality rating of a bond falls, sellers must lower their asking prices to make the bond attractive to potential buyers.

The coupon rate of a bond is calculated using the par value.

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.

If anything, that actually looks more like the rating of a bond or other financial product.

Credit ratings can change over time, so it's a good idea to monitor the ratings of any bonds you own.

The variable rate of an I bond is the part of the calculation that is based on the CPI - U inflation rate change.

This is significantly less than the interest rates of bonds, although stocks offer, in average, better returns, because they are more volatile and investors demand a premium in exchange for that uncertainty.

For example, although the current ratings of a bond might be appropriate, the credit analyst might have an insight into the prospects of the issuer that suggests credit fundamentals are improving.

If you see that the current interest rates of bonds are increasing and is showing no sign of descent, then it is probably a good idea to sell off bonds when the increasing trend in interest begins.

The 10 year is trading ~ 1.7 %) This sensitivity to rates is directly correlated with three things, the quality of the bond, the bond's time to maturity and the interest rate of the bond.

Eligible issuers of school construction bonds and zone academy bonds can receive payments equal to the lesser of the actual interest rate of the bonds or the tax credit rate for municipal tax - credit bonds, which the Treasury sets daily.

The ratings of bonds by various rating agencies can vary based on the reliability of the issuer and the potential risk that the issuer could default on the timely payment of interest and principal.

Yields can be measured in a number of ways, including coupon yield, or the stated interest rate of the bond, and yield to maturity, which is the total rate of return when an investor holds the bond to maturity.

After that, the lower the rating of the bond the worse they do.

Depending on the rate of the bond, the rate can range from slightly better than Certificates of Deposit or high rate Money Market accounts to nearly the same as the average of the stock market over the past 80 years.

The composite rate of an I bond is based on two separate rates: the fixed rate, which is set at the time of purchase and remains constant for the life of the bond, and the inflation - linked rate, which changes every 6 months based on the change in the CPI - U measurement.

Even when the variable portion changes, the rate may be different because of the fixed rate of your bond may be different than the fixed rate of a new bond.

The «I» in I Bonds stands for inflation, which is how the composite rate of the bond is determined.

The rate of an I Bond changes every 6 months while a CD is constant throughout the term.

As I said, this would be a simple fast measure (not considering risk rating of the bonds, inflation and other considerations).

Yield spreads in this case refers to the difference between the interest rates of bonds of two different maturities, or two points on the yield curve.

If investment is in bonds, make sure that you understand rating of the bond.

Ratings of these bonds should be checked before investing.

If anything, that actually looks more like the rating of a bond or other financial product.

Not exact matches

The threat of a trade war would also freak out the overseas investors we count on to buy our government bonds, and keep our interest rates at super-low levels.

Only two years ago they were rating AAA all the toxic bonds that created the crisis,» said Greek Prime Minister George Papandreou, adding that the downgrade was executed «not because of what Greece is doing but because of the decisions being taken by the EU that are not considered as going far enough.»

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.

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.

If interest rates rise and push that risk - free rate of return higher, then those dividend stocks and high - yield bonds are vulnerable.

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.

This «recent stream of defaults» pushed the default rate of junk - rated bonds in the US to 3.9 % for the trailing 12 - month period ended in March, up from 3.4 % in December.

For example, interest - rate - sensitive income stocks and bonds tend to do well coming out of the trough, and more cyclical companies excel later on as the recovery gains steam.

As the business sector accumulates more surplus cash, it has the effect of driving down interest rates because there's less demand for corporate bonds and other forms of business lending.

«The credit quality, this move up in interest rates, this loss of a four - decade uptrend in bonds, downtrend in yields, that's the source of the volatility which I think far surpasses these amazing developments technology has come across in the last couple of decades,» said Gordon.

When rates go up, some of that money will tend to flow back into bonds and away from the stock market, so investors need to pay close attention to this, said McClanahan.

But longer term, rising rates will be bad for stocks; therefore, investors may want to evaluate their portfolios and move out of some equities and invest more in bonds, she said.

Bond prices were higher, stocks waffled and the dollar flip - flopped after the Fed's post-meeting statement failed to deliver the clarity markets were looking for on the course of rate hikes.