Sentences with phrase «selling the bonds before»

But there are investors that buy and sell bonds before maturity with the goal of selling them for a profit.

If interest rates go up and you need to sell your bonds before they mature, you need to be aware their value may have gone down and you may have to sell at a loss.

If you sell a bond before its maturity date, you may get more than its face value; you could also receive less if you must sell when bond prices are down.

Where today's low interest rates create a potential problem is when the buyer of that 10 year bond today needs to sell his bond before the 10 years is up.

But anytime you sell a bond before its maturity date, it could be worth less than you paid for it if interest rates have gone up since you bought it.

Here's the lesson: anytime you sell a bond before its maturity date, it will either be worth more than you paid for it (because interest rates have gone down since you bought it) or worth less than you paid for it (because interest rates have gone up since you bought it).

If this happens, you can make money by selling your bond before it matures.

Rate sensitivity measures how much the price of the bond would change due to interest rate changes, which is important if you plan to sell the bond before maturity.

Though not as liquid as stocks, you can usually release your cash by selling your bond before it reaches maturity.

In addition to that, if you plan to sell the bonds before maturity, you may suffer a loss depending on how much interest rates go up (reminder: they are at historic lows currently).

For example, if you buy a bond and interest rates rise, you may incur a loss if you need to sell the bond before its maturity date.

If your circumstances change and you need to sell the bond before maturity, you can lose capital that you would otherwise receive, if you held the bond to maturity.

You can choose to sell bonds before maturity to see what the numbers look like, including basis and capital loss.

That is a big concern for an investor who has to sell a bond before it matures.

If you need money and have to sell your bond before maturity in a higher rate environment, you will probably get less than you paid for it.

5) They usually only sell bonds before maturity when there's a nice capital gain profit to be plucked.

Not exact matches

This would treat all her assets — including stocks, bonds and property — as if they were sold on the day before the expatriation date and would impose levies on them based on their fair market value.

You can redeem the bond for its face value when it reaches maturity or you can sell it before it matures if you're willing to pay penalty fees.

These days, there is no shortage of market commentators suggesting that investors should sell stocks and bonds before another possible market crash.

When I was a junk bond trader in the 1990's, high yield money would be pulled from the market abruptly and quickly, usually about a week before the stock market would undergo a big sell - off.

The relative lack of liquidity in the bond market and the fact that it is oriented for institutional investors rather than retail investors means that you really want to know where a bond has been trading before agreeing to buy or sell at a given price (be careful not to get ripped off).

By November 2012, our bonds — now with about five years to go before they matured — were selling for 95.7 % of their face value.

Although there have been many ups and downs in this extended rate cycle, junk bonds and the portfolio managers who buy and sell them have never experienced a rise from these yield levels before.

For example, while equities were going crazy over 2005 - 08, this strategy would have sold some of the gains and moved them into bonds before the crash.

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.

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.

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.

Both investment - grade and lower - rated corporations sold more bonds last year than ever before.

The district can sell only up to $ 200,000 a year in bonds before going to voters for approval.

Co-author, The Baby Bonding Book for Dads and author, The Business of Baby: What Doctors Don't Tell You, What Corporations Try to Sell You, and How to Put Your Pregnancy, Childbirth, and Baby Before Their Bottom Line (forthcoming from Scribner, April 2013).

«We waited for the renewal before we sold bonds.

If the bond is sold before it matures, a capital gain or loss may ensue.

3) If you're buying individual bonds, if you might need to sell before maturity and you're risking a loss if rates rise in the interim;

The vast majority of bond index funds sell them before maturity because major bond indexes provided by BarCap (ex-Lehman) all have minimum maturity clauses, forcing them to sell the bonds early in order to track the index properly.

A bond with a «Put option» works in exactly the opposite manner, wherein the investor can sell the bond to the issuer at a specified price before its maturity if the interest rates go up after the issuance and the investor has other, higher - yielding investment options.

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.

For example, while equities were going crazy over 2005 - 08, this strategy would have sold some of the gains and moved them into bonds before the crash.

The bond was sold to investors by the issuer on its issue date which was many years before the maturity date.

And you won't suffer a capital loss unless interest rates spike and the bond is sold before maturity.

That doesn't mean the amount the issuer must pay when a bond matures changes, but it does change the amount you will be able to sell a bond for in the secondary market if you need the money before the maturity date.

I also remember how we used to gauge the liquidity of bonds we lent out, and if one was particularly illiquid, we would always recall the bond before selling it, which would often make the price of the bond rise.

Callable bonds are able to be purchased back by the company before they mature, potentially exposing investors to the risk of being forced to sell a good investment.

If you use an online brokerage, additional transaction fees may apply should you sell an individual bond before maturity.

While individual bonds can be sold before maturity, selling before maturity can result in a loss.

The value of zero coupon bonds is more sensitive to changes in interest rates however, so there is some risk if you need to sell them before their maturity date.

Prohibited acts.A credit services organization, a salesperson, agent, or representative of a credit services organization, or an independent contractor who sells or attempts to sell the services of a credit services organization shall not: (1) Charge a buyer or receive from a buyer money or other valuable consideration before completing performance of all services, other than those described in subdivision (2) of this section, which the credit services organization has agreed to perform for the buyer unless the credit services organization has obtained a surety bond or established and maintained a surety account as provided in section 45 - 805; (2) Charge a buyer or receive from a buyer money or other valuable consideration for obtaining or attempting to obtain an extension of credit that the credit services organization has agreed to obtain for the buyer before the extension of credit is obtained; (3) Charge a buyer or receive from a buyer money or other valuable consideration solely for referral of the buyer to a retail seller who will or may extend credit to the buyer if the credit that is or will be extended to the buyer is substantially the same as that available to the general public; (4) Make or use a false or misleading representation in the offer or sale of the services of a credit services organization, including (a) guaranteeing to erase bad credit or words to that effect unless the representation clearly discloses that this can be done only if the credit history is inaccurate or obsolete and (b) guaranteeing an extension of credit regardless of the person's previous credit problem or credit history unless the representation clearly discloses the eligibility requirements for obtaining an extension of credit; (5) Engage, directly or indirectly, in a fraudulent or deceptive act, practice, or course of business in connection with the offer or sale of the services of a credit services organization; (6) Make or advise a buyer to make a statement with respect to a buyer's credit worthiness, credit standing, or credit capacity that is false or misleading or that should be known by the exercise of reasonable care to be false or misleading to a consumer reporting agency or to a person who has extended credit to a buyer or to whom a buyer is applying for an extension of credit; or (7) Advertise or cause to be advertised, in any manner whatsoever, the services of a credit services organization without filing a registration statement with the Secretary of State under section 45 - 806 unless otherwise provided by the Credit Services Organization Act.

There is always the possibility the bond could run up in value before maturity, and we could sell it for a higher annual return.

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.

You can lose money on a bond if you sell it before the maturity date for less than you paid or if the issuer defaults on their payments.

But if there is an existing capital gain in the bond, it may be better to sell it BEFORE maturity.