Sentences with phrase «term bond because»

We know that inflation will always be a negative for any long - term bond because it eats away at the future returns.

Faber said he is holding gold, cash and short - term bonds because inflation will increase as the U.S. government lowers interest rates to stave off an economic slowdown.

These people - «the market» - may be unwilling to buy longer term bonds because they know those won't keep up with the costs they're facing, so they either park their money in a short term place for immediate access, or they invest in something they think will do well over the long run.

Not exact matches

The BOJ currently makes the distinction because buying long - term government bonds for monetary easing could bind its hands on policy for longer than it wants and make a future exit from ultra-loose easing difficult.

But, «the U.S. and the Bank of England have gone to more extremes because they have interest rates below the Bank of Canada's, and they've also been buying bonds to lower longer term interest rates,» Shenfeld added.

Because most organizations don't give «onboarding» the attention it deserves, they don't build a strong bond with their customers from day one and that is problematic for long - term loyalty.

A large share of Italian debt issued under domestic legislation does not have any contract terms and is regulated by an Italian law that gives the Italian Treasury ample latitude to restructure the debt... The composition of Italian public, however, is changing rapidly because in January 2013, Eurozone members started issuing bonds with standardized contract terms.

Sure, target - date plans are conservative from a wealth perspective because you typically start off with more stock and slowly unload it, which results in purchasing more short - term bonds as retirement looms.

Alternatively, it's best to shorten the average term to maturity of your bond portfolio as interest rates enter into a rising cycle, because the shorter the term, the less their price will be affected.

But the simple fact is she just doesn't know, because she doesn't know when the effect of a higher coupon has a more powerful effect on a bond's price than does a shorter term.

Because most wealthy Chinese seem to think about RMB in terms of USD or Hong Kong dollars, it is the fear that any depreciation of the RMB against those two currencies (the Hong Kong dollar is pegged to the USD through a modified currency board) greater than the couple of percentage points interest rate differential would yield less than equivalent USD or Hong Kong dollar bonds.

If this doesn't underscore that longer - term bond yields don't have to rise just because the Fed hikes rates, we're not sure what would.

While an aggressive type portfolio will naturally fluctuate over time and has more «volatility,» this is nothing to get scared about because you are saving this money for the long term and over a 10 + year investing horizon you are going to make more money investing in stocks than in bonds.

As we've also mentioned before — and as this year's bond market behavior emphatically demonstrates — longer - term bond yields don't have to rise just because the Fed is hiking rates.

Interest rates have continued to be pushed lower and lower and lower and most of this is because the Fed keeps on adjusting that federal fund's rate and adjusting interest rates down in the way that they do that is by putting cash into the market and buying back bonds or short - term bonds with the federal fund's rate.

«When I purchased long - term zero - coupon bonds in the early 1980's at market yields in excess of 13 %, I welcomed the prospect of outsized volatility because I felt it would eventually work in my favour.»

@ agranny — short term gov bonds will do OK against inflation over time because you can reinvest maturing bonds relatively quickly at higher interest rates.

She also repeated the Fed's message that even after the bond program ends, it will keep short - term interest rates near zero for a long time because the bank doesn't want to remove its support too fast.

But, because you'll be withdrawing in this phase, you may prefer a rolling ladder of bonds for absolute control or settle for a short - term bond fund to balance convenience and volatility.

This is also a popular strategy for people that need passive income because it provides a constant stream of extra income as the near - term bonds mature and return your investment money.

The Fed has been in the news lately because it plans to reduce its holdings of longer - term government bonds.

Edelman says that many investors have piled into long - term bonds and high yield debt because they come with higher yields.

However, I wouldn't say cash is trash just yet, because institutions can't get anything like 4 % from the short - term bonds they invest in as a near - cash equivalent.

The erosion of value in bonds because of inflation is harder to measure, but more damaging in the long term.

In terms, I think of inflation and bond markets, it took six, seven, eight, maybe 10 years of high inflation in the 1970s before you had Paul Volcker brought in to say «enough is enough,» and then again whether it's led by American monetary policy but similar moves in Europe, obviously in the UK, a significant tightening of monetary policy because people got fed up with inflation and I don't think that we are kind of yet at the point where real wages have been suppressed so much by that irritation that inflation is always running ahead, life is becoming more expensive, so we need the central bank radically to change their policy.

This is important because, as Jean demonstrated, there is a link between global savings and the U.S. term premium, i.e. the extra rate investors receive for investing in long - term bonds.

Capital markets are very sensitive to inflation because of its impact on real long - term returns, so it is not surprising that bond yields have fallen as inflation has come down.

Because $ TBT is a leveraged inverse ETF, there is a degree of underperformance to the underlying index (long - term treasury bonds) as the holding period increases.

And just as long - term bond prices decline as interest rates rise (because new investors demand the yield on old bonds matches those of newly issued, higher yielding ones), the same can be true (though not always) for triple net lease REITs such as STORE Capital.

After all, the long - term bond holders should demand a higher yield because, with time, risk and uncertainty increases.

LeBarre said the bond measure was approved because the school district worked with members of the community, discussing the need for resources to help boost their children's long - term success with improved nutrition and the plans for how the funds will be used to accomplish these goals.

You may already be familiar with the term «kangaroo care» or «skin - to - skin» care for your baby because it's actually an important way to not only bond with your baby, but to help him or her thrive and grow too.

But Kremer says the portion of the Bond Act that would go to build new classrooms for pre-K programs and get kids out of trailers would be a good use of the money, because it would be a long - term investment with long - term benefits.

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

«I am not saying this money should be given to states but be in form of bond depending on how Federal Government wants to design it because it is understood that if such huge money which may run into N2 to N3trillion get into states, it may cause inflation but to avoid such, a flexible term and measure will be applied by the Federal Government.

«I think it caught on, probably because, A, it's very close to what we already have in terms of the word vomit, so it was easily accessible linguistically and then, B, it already fit in with a cultural perception» spread through works like the «Satyricon,» Bond said.

Because the term refers to the configuration of a double carbon - carbon bond, trans fats are sometimes monounsaturated or polyunsaturated, but never saturated.»

To get away from the idea of gritty low - budget Noir or any B - movie sense (and because the spy films from James bond on down were making so much money), Warner and Newman went the big time Hollywood route with an all - star cast for the first Harper film including Lauren Bacall, Shelley Winters, Julie Harris, Arthur Hill, Janet Leigh, Pamela Tiffin, Robert Wagner, Strother Martin and made it a point it was Hollywood getting gritty on its own big time terms.

Owning a home brings a sense of maturity, solidity and long - term security and potentially, growth in personal revenue because the money you pay every month towards your bond leads you closer to legally owning your home in future.

It will increase the reader / author bond, esp because readers who like the ebook will feel like they are «in his corner `... I do nt think it will go the way free music downloads has in terms of cds, where bands have to tour to make the income they used to from cds sales...

Because each bond issue is different, it is important to understand the precise terms before investing.

Because of this, a given interest rate change will have greater effect on long - term bonds than on short - term bonds.

Most bond investors take a buy - and - hold strategy, partially because bonds are less liquid than stocks but also because the income characteristics of bonds are attractive over the long - term.

Because bonds are a safer investment, you shouldn't see too much volatility in terms of the value of your account; it'll be relatively stable.

And we really feel that that's the sweet spot of bonds because you're getting almost all the yield, not all the yield, but you're getting a good portion of the yield that you would find in a long - term bond fund.

Mortgage rates are always higher than the rates on GICs and government bonds of the same term because working that spread is part of how banks make money.

Let's call it a Treasury Bond Bubble, because other classes of intermediate term debt have significant yield spreads over Treasuries because of the current economic volatility.

Because the pattern of risk and returns from bonds and short - term investments is different from stock market returns, adding them to a portfolio of stocks may mitigate some of the overall volatility you experience.

Another difference is that bonds are based on a defined term (maturity) because since they are simply borrowing external funds to them to finance long - term investments.

Because cash is generally used as a short - term reserve, most investors develop an asset allocation strategy for their portfolios based primarily on the use of stocks and bonds.