Sentences with phrase «riskier than government»

Corporate bonds are considered to be riskier than government bonds because the investment grade rating of corporate bonds varies depending on the debt issuance and revenue of the company.

That makes them no riskier than Government of Canada bonds of the same maturity, even though they usually have higher yields.

Corporate bonds are far riskier than government bonds, and the risk on corporate bonds, varies widely.

Since corporate bonds are riskier than government bonds, these funds are not equivalent.

However, MBS are riskier than government - backed bonds.

Not exact matches

Investment - grade corporates pay about two percentage points more than short - term government bonds, and they're less risky than they used to be.

While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.

Similarly important are the returns that bond investors are willing to accept in financing governments, which is generally seen as a less risky proposition than loaning money to commerce.

I don't want to mislead in this article because the investments I will be discussing are a bit riskier than FDIC insured certificates of deposit or government bonds.

That post should have given wavering «yes» voters pause for thought; the path to independence is harder and riskier than the Scottish Government's optimistic White Paper claims.

It is, therefore, in Cameron's interest to focus on maintaining friendly relations with the Liberal Democrats rather than taking risky steps that will probably not produce a Tory government but may push the Liberal Democrats into Labour's arms.

If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as stocks) into a lower risk asset class (such as government bonds or money market funds).

It's reasonable these days to expect safe government bonds to return less than 3 %, so there's a gap that needs to be made up by investing in riskier assets with less reliable returns.

Bonds: Government bonds, corporate bonds and municipal bonds offer greater returns than cash but are more risky.

In markets for government debt, favoring the a priori safe bet of high - debt - issuer countries, such as the United States, Japan, and developed European nations, can be far riskier to an investor's wealth than interest - rate volatility or credit ratings may suggest.

For example, if you're buying a bond from a company, that might be more risky than buying one from the Federal Government.

However, because mortgages are a riskier investment for a lender than purchasing a note guaranteed by the U.S. government, lenders add a percentage to the Treasury rate to account for the additional risk of a mortgage default.

Accordingly, if you're approved for a conventional loan but have a low credit score or income, you're likely to pay higher interest rates and more in insurance charges than you would for an FHA loan; this is because it's riskier for lenders to offer a conventional loan to you without the backing of the government.

Riskier investments such as shares and junk bonds are normally expected to deliver higher returns than safer ones like government bonds.

Government student loans are especially difficult to discharge in bankruptcy, so it is a slightly riskier than average type of debt.

3) These two factors — RBI emergency lending and government backstops — makes banking seem less risky than it is.

Because government entities have the power to raise taxes and fees as needed to pay the interest, municipal bonds are generally considered to be less risky than corporate bonds, so they typically offer lower yields.

But investors treated both companies like government - sponsored entities (GSEs), allowing them to function with a far riskier capital / asset ratio than other private companies.

You don't need to look much further than the years of delays on the Keystone XL pipeline to see that governments are starting to second guess these big cash layouts on climate - risky projects.

Due to government policy, moreso than consumer demand, Ford is engineering a risky re-design of its best - selling car, and Audi is spending $ 20 billion over the next half decade.

Government research then found that claimants make riskier investments than assumed, and proposed draft legislation to change the way the rate is set, proposing that an expert panel advise the Lord Chancellor.

He said cryptocurrency is riskier than fiat currency because it isn't regulated by the government.

I was 100 % debt free with a small pile of paper assets before I started researching the stimulus and hyper spending of the government... Once I convinced my wife that debt was cheap and less risky than holding cash (took some serious negotiating) we have started leveraging out 20 + year fixed loans on cash flowing properties..