Sentences with phrase «reinvest at higher yields»

Extension risk For mortgage - related securities, the risk that rising interest rates will slow the assumed prepayment speeds of mortgage loans, delaying the return of principal to their investors and causing them to miss the opportunity to reinvest at higher yields.

You could free up that $ 3,922 and reinvest at a higher yield and receive more money.

Not exact matches

But then the fund begins to reinvest cash flows at the new higher yields, which would steadily boost income.

The positions the bloggers and commentary took against reinvesting dividends centered on whether the stock price would be good at the time of the reinvestment; and it mentioned strategies like pulling the dividends out and either putting them into a high - yield savings account or accumulating them until such time there was enough to make a new investment into some other stock or stock fund.

For taxable accounts, I'll take the slightly lower rate at Ally in return for the lower cost to break the CD and reinvest in a higher - yielding CD if interest rates increase significantly in the next few years.

You might focus on the silver lining: Rising rates will ultimately help your bond portfolio, as you invest new savings — and reinvest interest payments and the proceeds from maturing bonds — at the higher yields.

As proceeds from maturing bonds are reinvested in higher - yielding bonds at the far end of the ladder, the portfolio's yield gradually increases.

These all yield 5 - 7 % monthly distributions, and when reinvesting the monthly distributions over several decades, the result can be a quite high level of income at retirement.

But McBride says most savers are smart to stay liquid in money market accounts: «In a rising - rate environment, you want the ability to reinvest on a regular basis» at higher yields.

Not only did I take some profits from the sale, but also reinvested most of the capital from this transaction at a higher yield, so my passive income will also increase.

In a laddered portfolio, maturing bonds and coupon payments are typically reinvested in bonds at the ladder's longest rung, which usually offers higher yields in normal market conditions.

But then the fund begins to reinvest cash flows at the new higher yields, which would steadily boost income.

Yields on callable bonds tend to be higher than yields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yYields on callable bonds tend to be higher than yields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yyields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yieldsyields.