Sentences with phrase «selling those bonds at»

It sold the bonds at high enough yields to receive orders for three times that amount.
Any chance a dealer had of selling bonds at a high price is pretty much gone.
Today, I sold the bonds at 95 cents on the dollar.
So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.
The investor also leaves open the possibility that if the bonds» price rises, he or she can ignore the put option and sell the bonds at a higher price.
So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.
She will do this to avoid being locked into a bond that ends up paying a below - market interest rate, or having to sell that bond at a loss in order to get capital to reinvest in a new, higher - interest bond.
The yield curve steepness anticipates much of this, but there will be a very negative tone if the Fed and Treasury are selling bonds at the same time.
Assuming the bond was actually issued with a negative coupon, if you are short (borrowing someone else's bond to sell the bond at a lower price / higher yield) Who pays the coupon?
Five years later, he or she sells the bond at a price of 95.
But there are still a lot of misunderstandings out there, like this one: a bond index fund is a black box that robotically buys and sells bonds at the mercy of active investors.
Bond funds make money from the interest earned on the securities they own or by selling those bonds at a profit.
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.
Companies with lower credit risk (higher credit rating) often enjoy a competitive advantage over their peers because higher rated companies can sell their bonds at a premium to lesser rated bonds.
Most of the income produced from the fund might be tax - exempt, but the fund can produce some taxable income (perhaps if it sells bonds at a taxable gain) and the shares themselves remain taxable assets at the time of sale.
You decide to sell a bond at a loss and use the proceeds to buy a better - performing bond.
If this individual sold the bond at $ 1,100, then the yield for the buyer would be $ 40 / $ 1,100 = 3.64 %
When BCE sent Teleglobe into bankruptcy several weeks later, we sold the bonds at $ 20.
RRBs have very long maturities, and rising interest rates may force you to sell the bonds at a loss.
As a matter of fact, group plan fund managers can take advantage of other funds that have to sell bonds at a discount, as well as buying strip bonds.
For newly issued BBB bonds, there is an increase in change of control covenants, which would allow bondholders to sell their bonds at investment grade levels (if not better) in a takeover.
Approximately 40 bond dealers actively «make markets» in high - yield bonds by offering to buy and sell bonds at quoted prices.

Not exact matches

Most likely, the manager will be forced to sell some bonds, potentially at a discount, as the fund needs to simply raise cash to meet redemptions.
At Thursday's auction of a 7.37 percent 2023 bond, the Reserve Bank of India was only able to sell about 430 million rupees out of the 30 billion on offer into the market, with the remainder having to be bought by primary dealers.
(If I owned, for example, $ 1,000,000 of «AAA» - rated bonds from a large US company I could very easily sell them at market price right now.
On Thursday, Argentina sold $ 7 billion in five - year and 10 - year dollar bonds in the international market at interest rates of 5.625 percent and 7 percent.
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.
Francesco Filia, chief executive at Fasanara Capital, said that the recent sell - off in bonds and equities could be «an early warning signal of what is to come.»
«At that time, even a 1 % annual rate of inflation between 2012 and 2017 would have decreased the purchasing - power of the government bond» he sold.
Sovereign bonds will still prove popular for investors over the next two years and a sharp sell - off in fixed income will fail to materialize, an economist at UBS told CNBC Thursday.
The MOVE index — which looks at the volatility of bonds — surged after the election, as the sell - off and shakiness in fixed income came to a head.
To oversimplify a bit, stocks are tax - efficient (because they're taxed at the lower capital gains and dividend rate and taxes are deferred until you sell) and bonds are not (they're taxed much like a savings account).
But given the pace with which bonds have sold off this year, a period of consolidation might be at hand.
[105] On January 8, 2008, to address ongoing structural budget issues, Governor Corzine proposed a four - part proposal including an overall reduction in spending, a constitutional amendment to require more voter approval for state borrowing, an executive order prohibiting the use of one - time revenues to balance the budget and a controversial plan to raise some $ 38 billion by leasing the Garden State Parkway, the New Jersey Turnpike, and other toll roads for at least 75 years to a new public benefit corporation that could sell bonds secured by future tolls, which it would be allowed to raise by 50 % plus inflation every four years beginning in 2010.
a type of asset class in which the investments provide a return in two possible forms; coupon paying bonds have fixed periodic payments and a return of principal; zero coupon bonds are sold at a discount, do not pay a coupon, and have a return of principal plus all accumulated interest at maturity
He was considering selling the bonds to lock in the gains, but then he would still have to reinvest his proceeds at the now lower interest rates.
Careful portfolio management, he said, would allow the central bank to absorb the losses over time by trying to hold bonds to maturity rather than selling at a loss.
Holding a bond ladder that you can liquidate when the market is down provides the alternative to selling stocks at the worst possible times, and allows you to wait until the stock market recovers.
BERLIN — Throughout the month, countries caught in the eye of the European financial storm, including Italy, Spain and France, have repeatedly defied expectations, selling big batches of bonds to the public at interest rates significantly lower than investors demanded at the height of the euro crisis late last year.
«Generally, the bond market seems to be under - reacting to both the sell - off and the rally,» said Subadra Rajappa, head of U.S. rates strategy at Societe Generale in New York.
Lastly, unlike bond mutual funds which can only be purchased or redeemed at end of day, individual bonds can be bought and sold throughout the day providing the investor with more immediate liquidity.
«Some hybrid funds may consider selling their stock investments for fund redemption due to weak liquidity for their bond investments following the bond market and money market crash,» analysts at Credit Suisse said in a note dated Friday.
If you buy a bond for less than face value on the secondary market (known as a market discount) and you either hold it until maturity or sell it at a profit, that gain will be subject to federal and state taxes.
Bonds and bond funds are taxed in 2 ways — based on the income that's distributed and on any gains if the investment is sold at a profit.
I would be interested if you could compare your 60/40 mix to a 60/40 mix using 5 - year bonds that are laddered so that they can be held to maturity and used when needed as they mature, and therefore never need to be sold at a loss.
This way, if a bear market occurs, you have a year of cash becoming available at the maturity date so that you do not have to sell stocks, and in a bull market you can buy new bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high quality bonds give versus cash or CDs.
Prosecutors claimed Demos lied to his customers about the prices at which his company could buy or sell mortgage bonds, boosting the profit his firm earned on a trade and therefore increasing his own bonus.
Industry in a war boom - stock market stagnant - gov» t bonds bringing less than 1 % and selling at a high premium - stocks low and selling at five times earnings.
But just remember that even though those bonds are never sold at a loss, they still have to contend with inflation.
I'd recommend at least a small allocation to bonds or cash in the event that an unexpected expense comes up that over and above the dividend yield (although you could always create your own dividend by selling shares too).
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