Sentences with phrase «returns of a bond»

While the returns of these bonds are affected by interest rates, they are also responsive to the overall economic cycle as well as the growth prospects of the issuing firm.

The average annualized weekly return of bonds outside of equity bear markets has been 5.51 %.

It plots the returns of bonds, stocks and a balanced portfolio (60 percent stocks, 40 percent bonds) during each equity bear market since 1960.

The average annualized weekly return of bonds inside of equity bear markets has been 7.89 %.

Translated from math - speak to English, we're more or less saying, «the monthly returns of the bond portfolio is equal to some multiple of rate changes plus some multiple of credit spread changes.»

In addition, I assume that all income received is reinvested, which is important because reinvesting income at higher rates helps offset the losses in the initial hike year and increases the total return of the bond portfolio over time.

While the POTENTIAL is there to outpace the investment return of a bond or GIC, it's not guaranteed to be there WHEN YOU NEED IT.

Bond investors need to realize that most returns of the bond market are earned at three times: first, after the nadir of the credit cycle, credit - sensitive bonds soar.

While stocks have historically provided income and capital appreciation, the total return of bonds has been composed primarily of interest income.

This flight to quality movement also impacted credit spreads, which widened for both investment grade and high yield corporate bonds, negatively impacting the returns of bonds in those sectors.

Rates are at their lowest right now with returns of bonds far below the historical average of 5.18 % but a strong stock allocation should prolong your portfolio's longevity.

By linking the return of the bonds to an inflation index, the bonds are always guaranteed to earn a fixed rate above the inflation rate.

The supporting rationale is that the moderately greater return of bonds as compared to cash helps minimize the impact of inflation, which starts to cause a more noticeable erosion of your portfolio's real value when compounded over more than a few years.

Because of compounding growth (Article 3), we know that the slightly higher returns of bonds in a bond / stock portfolio will cause a substantially higher terminal value than a portfolio with a similar balance of cash and stocks in most historical periods.

And unlike the returns of a bond fund, these returns are guaranteed.

The important point is this: as the duration of indexes increases and as credit quality decreases, the expected long - term return of a bond index increases to compensate for those extra risks.

For example, given that the price return of a bond is determined by the bond's duration and yield change, a bond portfolio constructed using the volatility measure of standard deviation of price return could be biased toward bonds with short duration.

These charts show only the change in market price, not the interest payments paid to investors in cash, so they do not reflect the total return of your bond ETF.

If inflation shows up, the return of your bonds keeps pace.

The average annualized weekly return of bonds outside of equity bear markets has been 5.51 %.

The average annualized weekly return of bonds inside of equity bear markets has been 7.89 %.

The relationship of yield to the real return of bonds is much weaker because the market - implied inflation rate at the purchase date could be vastly different from realized inflation over the 10 - year horizon.

It's also worth pointing out that some knowledgeable investors, like Charles Ellis, have for many years questioned the value of the lower returns of bonds in a long - term portfolio.

Nonetheless, given the safety of U.S. government bonds, and the relatively lower volatility and returns of all bonds, less diversified bond holdings may adequately fulfill the needed function of bonds in an overall portfolio.

He wrote in his book Bogle on Mutual Funds that «although past absolute returns of bond funds are a flawed predictor of future returns, there is a fairly easy way to predict future relative returns.»

Recently, she assisted a client with all permitting aspects for a $ 10,000,000 + 3D seismic project, and helped another successfully plug and abandon a foreclosed coalbed methane field, resulting in the client receiving full return of bonding and generally navigating through the dangerous waters of distressed oil and gas properties.

Return Of Bond Rule 721.

Not exact matches

Stocks are a tool to make money, Cramer said, and bonds are for capital preservation — for protecting money and providing a small, steady return that can offset the impact of inflation.

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

That is, we are taking positions that try to remove the direction of equity markets, and for the most part, the direction of bond markets from returns.

Bonds, he says, will return 1 % to 2 % at most, while stocks, which have become more volatile of late, will return between 6 % and 8 %.

Also, as bond rates rise, some of the money that migrated over from the bond market in search of higher yields will return to the safety of fixed income.

What that means is that you are in an environment that is going to have further trouble in terms of investment returns that are in areas that are based on economic growth and areas that do relatively well like bonds... Broadly speaking, I think that investors should be looking for lower prices on most risk assets in these developed countries with the exception of Japan.»

But, what typically happens in this cycle, is interest rates start to accelerate, leading credit spreads — essentially the gap between how much more of a return bonds provide compared with US treasuries — to compress.

Gundlach predicts that both high - yield bonds and a portfolio of mortgage - backed securities could return about 6 percent in 2013.

Greece is making its return to the market Tuesday after a three - year absence with the sale of a five - year bond.

Since those investors are just looking for the highest returns, and not say buying bonds their financial advisor told them they needed bonds as part of their retirement planning, they are more likely to jump when rates rise.

If rules allowed, Fink added, the guy's pension fund should sell all of its bonds «and go 100 % equities» because that's where tomorrow's returns will be made.

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.

New bond investors would probably demand a higher return to compensate for the added costs of investing in bond funds.

The 10 percent average return on the S&P 500 may not seem impressive at first, despite the fact that it's more than double what one can expect from a 30 - year Treasury bond and way more than what a certificate of deposit from a bank pays.

She relies on a database of 1,000 simulations of future returns to conclude that, 75 years from now, a Social Security trust fund portfolio that includes stocks will produce a healthy ratio of assets to benefits, while a trust fund consisting of only bonds will be completely exhausted.

«If we assume extremely pessimistic nominal earnings growth of 3 % over the coming decade and a compression in the price - earnings ratio to 10, equities would still deliver returns above current bond yields.

«But due to the low coupons prevailing, even a gradual rise in yields will result in negative returns on a wide range of government bonds over the coming quarters.»

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

The Vanguard High Yield Corporate Bond fund has underperformed Treasuries in the recent downturn, but it still has a positive return of 0.5 percent in the year - to - date through Oct. 27.

But that was below the 6 percent return of GIC's reference portfolio of 65 percent global equities and 35 percent bonds.

Here are some of the total returns these bonds have generated to this point in 2011:

Among corporate issues, the bank bonds I monitor total returned an average of 4.6 % this year; utility bonds, 4.2 %; and other corporate bonds, 4.4 %.

If the same person instead invested a little less each year (6 % of his income) in a portfolio weighted 80 % to higher - returning equities and 20 % to bonds, he would only have $ 469,000 at retirement.