Sentences with phrase «sell those bonds falls»

When bond yields rise, the market price to purchase or sell those bonds falls.

Not exact matches

Back in October, the big story was not just that equity markets were selling off while bonds were rallying, but that inflation expectations had completely fallen off a cliff.

Italian 10 - year bond yields fell 2.5 basis points (bps) to 1.754 percent while other euro zone yields were pushed higher by a sell - off in U.S. Treasuries and data suggesting the euro zone economy was not as weak as expected.

If you own the bond fund that fell in value, you can sell it right after the fall and still buy the portfolio of individual bonds some say you should have owned to begin with (which, again, also fell in value!).

Bond traders also keep an eye on the VIX, a measure of stock - market volatility, since it has historically been highly correlated to the performance of stocks: rising when stocks sell off and falling when stocks rally.

So while these «fallen angel» bonds have the potential to be intrinsically higher quality than debt originally issued at the junk or high - yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.

In the end, the insiders sold out at the top of the market, leaving pension - fund investors with stocks whose prices were falling and bonds that were losing their prospects of being paid off.

Bond ETFs Sold On the outflows side, bond ETFs fared the worst, as bond prices fell and yields tickedBond ETFs Sold On the outflows side, bond ETFs fared the worst, as bond prices fell and yields tickedbond ETFs fared the worst, as bond prices fell and yields tickedbond prices fell and yields ticked up.

In a diversified portfolio you use your bonds to buy stocks (or for spending purposes if taking distributions from your portfolio) when the stock market falls so you aren't forced to sell your stocks at a low point in the cycle and lock in losses.

Bullion took another hit, falling to a six - month low, on December 20 after the Fed's decision to scale back its bond - buying stimulus prompted another sell - off.

Even without any selling, the value of the fund's share price would fall (roughly as a function of the fund's average «duration», a measure of interest rate sensitivity that is a related to a bond's maturity).

Bond values fall in a rising interest rate environment because investors sell bonds in favor of higher interest yielding bonds.

The district, by selling the bids earlier in the year, gained a lower interest rate than if it had bidded the bonds in the fall, as it does customarily, according to Park Board President Kathryn Graham.

These bonds are often sold on the secondary market and their prices can rise and fall based on various factors.

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«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.

However, it's worth noting that current yields assume that bonds will be held to maturity; some market participants may believe they will be able to sell the bonds for more than they paid (i.e., yields will fall even more).

We can all wonder what would happen if the thirty - year Treasury bond fell from favor as a speculative vehicle, causing these short - term holders to rush to sell at once and turning thirty - year Treasury bonds back into eating sardines.

If you set stocks at 50 %, and stocks fall to 45 %, making bonds rise to 55 %, then simply sell 5 % bonds and buy 5 % stocks to get it back to 50/50.

Thinking of bonds as having sold a put option to the equity, why not look at the amount that the stocks of the companies issuing the bonds had fallen in price since issuance of the bonds?

In this environment, where yields have fallen over the past few years, it is difficult for financial companies that have bought bonds to replace the income if they sell the bond.

If interest rates rise, and the market value of your bond falls, you will not feel any effect unless you change your strategy and try to sell the bond.

But of course, the opposite also applies and if interest rates fall then your bond will be worth more and you can sell it for a higher price.

1) Investor inflation expectations have overshot, and it is time to sell long TIPS and buy long nominal bonds, as long - term inflation expectations may fall in the future.

Similarly, you should not say you have not lost money when a bond's price falls, even if you do not sell it.

If you now want to sell your bond in the market, the price must fall to a point where another investor can earn 7 % by buying it and holding it to maturity in 4 years.

Own bonds that are rising, and sell those that are falling.

If the value of bonds fall or rise, they rebalance it by selling our buying some of the equities within the fund.

Liquidity risk: if the bond issuer's credit rating falls or prevailing interest rates are much higher than the coupon rate, it may be hard for an investor who wants to sell before maturity to find a buyer.

Applications for U.S. home mortgages fell for a second week and hit a 13 - year low as mortgage rates rose due to a bond market sell - off following the Federal Reserve's decision to pare its bond purchase stimulus in January, an industry group said on Tuesday.