Sentences with phrase «sell a bond long»

The basic point here is that by focusing on declining credit quality you put yourself in a position to sell a bond long before any potential default.

Not exact matches

The longest - term portion of the offering, $ 8 billion of bonds maturing in 30 years, sold originally at 99.4 cents on the dollar to yield 1.95 percentage point more than comparable Treasuries.

With a fresh picture of your 2016 results and how your holdings are divided between stocks, bonds and cash, it should be easy to «rebalance» — sell some holdings and add to others to get back to the proper mix for your long - term plans.

In addition, some investors successfully build the value of their long - term portfolios buying and selling bonds to take advantage of increases in market value that may result from investor demand.

What should worry you is the absence of long - term fundamental investors who will buy bonds — intermediated by dealers, sure — when everyone else is selling.

«Will there be demand for the bonds that central banks will need to sell, or the ones that central banks will no longer be buying?

Jim O'Shaughnessy sees high risk for negative real returns in long bonds, calling this «a generational selling opportunity» #TBP2013 — William Sweet, CFP ® @billsweet, president at Stevens & Sweet Financial

Each month, Palhares and Richardson sorted corporate bonds into quintiles based on each liquidity measure and computed the return of a long / short portfolio that buys the least liquid bonds (i.e., smaller issue sizes, higher bid / ask spreads, lower trading volume, higher price impact or higher frequency of zero - trading days) and sells the most liquid bonds (i.e., larger issue sizes, smaller bid / ask spreads, higher trading volume, lower price impact or lower frequency of zero - trading days).

Consider a price - sensitive investor selling a long - dated bond to a liability manager in a rising rate environment.

Once it became obvious the world wasn't coming to an untimely end, the next move was to sell out of longer treasuries and buy corporate bonds and preferred stocks, particularly from financial entities that now had a government back - stop behind them.

«With the Fed, for now, no longer in the bond buying business, but rather net selling its debt holdings, who will lend needed capital to the US Treasury, especially if the deficit is growing?

This program, known as Operation Twist, basically involves the central bank's selling of shorter - term bonds and buying longer - dated issues.

Taxation Of Distributions Besides taxes on capital gains incurred from selling shares of ETFs, investors are also subject to pay taxes on periodic distributions, which can be dividends paid out from the underlying stock holdings, interest from bond holdings, return of capital (ROC) or capital gains — which come in two forms: long - term gains and short - term gains.

That's a highly liquid double - inverse ETF with $ 3 billion in assets that's designed to climb in price when long bonds are selling off.

You may want to sell some of the bonds to bring your equity allocation back up to its longer - term target weight.»

«Operation Twist» describes a monetary process where the Fed buys and sells short - term and long - term bonds depending on their objective.

You could even use a blend of cash and bonds — as long as you have plenty buffer to avoid selling equities when they're down.

Apart from the virtues of an ETF like TBT that can be godsend in a bond market sell - off, it's worth pulling back and looking at Treasury yields over the longer term.

When they get to 2.5 %, they should start selling the longest bonds in their portfolio (note: I would encourage them to end balance sheet disclosure before they do this, after all, the Fed suffers from too much communication not too little.

The bond market manipulators led by Ben Bernanke announced an operation to buy long - term debt and sell short - term debt in 2011 with the expressed objective of sanitizing inflationary signals.

My summary advice for the FOMC would be this: before you flatten / invert the yield curve, start selling all of the long MBS and Treasury bonds with average maturities longer than 10 years.

Governments can also buy long - term bonds while selling off long - term debt to help influence the yield curve.

In recent years, those opponents have helped defeat a long list of Park District referendum proposals that asked for permission to sell bonds to construct a swimming facility.

Five pieces of heavy equipment no longer in use by the Highway Department were recently sold, and a multi-year bond initiative is just getting underway to replace them with three new trucks and associated equipment such as new snowplows.

«It is not exactly «money in the bank» because we have not sold the bond yet and we haven't collected taxes from our tax base to pay off the bonds, but we do have voter authority to sell the bonds as long as we fall within our debt ceiling capacity,» he told LA School Report.

Some top - selling titles include «War Brides» by Helen Bryan (270K + purchases or downloads), Karen McQuestion's books «A Scattered Life,» «Easily Amused» and «The Long Way Home» (500K + downloads), Ed McBain's 87th Precinct series which debuted in 1956 (250K downloads), Debora Geary's «A Modern Witch» (200K sold), and «Our Husband» by Stephanie Bond (200K sold).

Those expectations are leading to what's known as a flattening of the yield curve, whereby shorter - term bond yields rise faster than yields on longer - term bonds, as the former sell off.

Trade: Buy bonds when the ratio is more than half a standard deviation below its long - run moving average (bonds are cheap relative to stocks) sell when it's more than half a standard deviation above its long - run moving average (stocks are cheap relative to bonds).

One option you might consider for your medium to long - term savings are I Bonds, sold through the U.S. Treasury at treasurydirect.gov.

But if you buy and sell bonds, you'll need to keep in mind that the price you'll pay or receive is no longer the face value of the bond.

If I were managing bonds at present, I would be giving up yield at present by selling my speculative long bond positions that served me well over the past few months in my model portfolio.

Along come some trusts that buy long bonds and sell short - dated participations against them, and hedge the curve risk with Treasuries.

We believe that investing in undervalued sectors and bonds and selling expensive ones using a relative value assessment is the ideal process to capture value over the long term.

The maximum tax rate on long - term capital gains is 15 % (for bonds sold on or after May 6, 2003) and the maximum tax rate on short - term capital gains is 35 % (which is also the maximum tax rate on ordinary income).

A long - term gain requires that a bond be held for more than 12 months before it is sold; a short - term gain is the result of holding a bond for 12 months or less.

As your short - term bucket gets depleted, replenish it with medium - term bonds coming closer to maturity or by selling long - term assets when prices are favourable.

If your long - term strategic asset allocation is 60 % stocks, 35 % bonds and 5 % cash and a year's gains takes your stocks allocation up to 70 % stocks, you should sell some stock winners: enough to take the equity allocation back to 60 %.

Because in times of financial crisis, when an emergency fund will be the most useful, chances are your stocks and bonds will have decreased in value and it can be detrimental to your long term finances to sell them and use the money.

I took growth stocks and sold them and bought long term corporate bonds.

Someone holding this portfolio has a balance of 60 % stocks and 40 % bonds; the stocks are highly diversified across three major global groupings; and the bonds are split between those which are protected against inflation and the long - term bonds which are most valuable in a market panic or sell - off, when they (unlike everything else) tend to go up.

That profit can be taxed at maturity (or when it's sold) or it can spread out over the life of the bond or however long you own it.

That means there's lots of supply of longer - term muni bonds, so issuers have to offer higher yields to sell them.

For the longest time, small investors couldn't see how much other investors were buying and selling bonds for, meaning that their broker could seriously rip them off.

I've held XSB and XBB before and I'm not a huge fan of them because they don't necessarily hold their bonds until maturity (especially the long term fund), so you face realized capital losses when then sell bonds to maintain their duration range.

it's the same thing tax free... And NO an RRSP is not better then a non registered accounts, because people alway assumes that an investment is sold every year which it's not thats not long term investing folks... and bonds are not a good investment outside an RRSP..

So why would the Fed consider selling even longer - term bonds?

Wondering what your thoughts were on CEF Bond Funds as a way to gain long term exposure to bonds with lower risks of the fund having to sell bonds at disadvantageous moments.

Later, the article hems and haws over whether rising long rates would be a good or a bad thing, ending with the idea that the Fed could sell its long Treasury bonds to raise long yields if needed.

If you decide to sell a long - term bond before it matures, it will probably be worth less than you paid for it if interest rates have risen since you bought it.

«I want financials, I don't want energy, buy the long bond, sell gold.»