Sentences with phrase «term bonds mature»

Short - term bonds mature in five years or less; intermediate - term bonds take between five and 12 years; and anything beyond that is considered a long - term bond.

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.

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.

But if you don't want to wait 30 years for the bond to mature — or likely pay penalties if you redeem it early — you might want to look at some shorter - term investments.

And they should have varying maturity dates, from short - term to mid-term, so you always have some bonds maturing and providing you with either income or money to reinvest.

The dollar bond market has turned cold for Indian firms after a record 2017, with rising global interest rates, geopolitical concerns and market volatility prompting would - be financiers to demand either a higher yield or invest only in short - term paper maturing in two years.

State oil company PDVSA sweetened earlier terms and is now offering more bonds maturing in 2020 in exchange for $ 5.3 bln worth coming due next year.

State oil company Petroleos de Venezuela, commonly known as PDVSA, on Sept. 26 sweetened terms of a debt swap, offering to exchange more bonds maturing in 2020 for $ 5.3 billion worth that mature in 2017 after investors balked at an earlier $ 7.1 billion one - for - one proposal.

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

High - yield bonds, those from companies with weak financial positions and poor credit, are offering rates as high as 9 % for 30 - year terms but also offer the risk of bankruptcy before the bond matures.

The beauty of being a long - term investor though is that you will still make the same return on the investment if you hold it until the bond matures.

Frequency of reinvestment based on the percentage of bonds maturing within 3 years — 22.5 % for the overall bond market (represented by Barclays U.S. Credit Bond Index) and 55.2 % for short - term bonds (represented by Barclays 1 - 5 Year Credit Bond Indbond market (represented by Barclays U.S. Credit Bond Index) and 55.2 % for short - term bonds (represented by Barclays 1 - 5 Year Credit Bond IndBond Index) and 55.2 % for short - term bonds (represented by Barclays 1 - 5 Year Credit Bond IndBond Index).

The people on these senior meeting sites are generally more mature in terms of relationships and are looking for deeper bonds than just physical or intimate relationships.

In practical terms, when a ladder length of 20 years is better than 10 years, you would take one - half of the principal amount from maturing bonds of a particular year and put it back into the ladder.

Term bond: A corporate or municipal bond issue with all the bonds maturing at the same time.

For example, the BMO 2013 Corporate Bond Target Maturity ETF (ZXA) is made up of bonds with an average term of about three years, since it is designed to mature at the end of 2013.

And while rising rates are bad for bonds and bond funds in the short - term, climbing yields can actually boost returns on a diversified portfolio of bonds over the long haul, as interest income and proceeds from maturing bonds are re-invested at higher rates.

Having some principal maturing in the near term creates the opportunity to invest the money elsewhere if the bond market takes a downturn.

When one bond matures, you have the opportunity to reinvest the proceeds at the longer - term end of the ladder if you want to keep it going.

The terms of the bond establish when the bond matures (when it can be exchanged for cash) and the interest that it will accrue.

Leading up to the final distribution date, the individual bonds in the ETFs mature and the funds transition into short - term taxable instruments and cash.

It is true that bond funds fluctuate in value but unless you need money maturing at a certain point in the future, bond funds are an acceptable alternative to owning bonds directly in long - term portfolios.

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.

Ultra long term bonds that will mature in the end of 2064 were issued by the Government of Canada with a yield of 2.96 %.

The benefit of staggering your long - term bond purchase is that even though all your bonds will mature during the same period, as you are purchasing the bonds at different periods, you will be able to get around the times when interest rates are high and bond values and low and buy bonds when there are no risks.

Depending on the terms of the bond, the bondholder also may receive interest payments before the bond matures.

It reinvests principal from maturing short - term bonds (low - yielding bonds) into new longer - term bonds (high - yielding bonds).

The bond will mature (maturity) at some specific date in the future (term) and pays a coupon (interest) on the principal amount over that time.

Some bonds that mature 100 + years in the future may also be labeled «perpetual» given their very long - term nature.

Ultimately, as those bonds mature and proceeds are reinvested in lower - yielding bonds, the portfolio's long - term return is lower than it would have been under the first two scenarios, because the reinvestments are in lower - yielding bonds.

Since this strategy includes a lot of short - term bonds, you'll need to continually trade maturing bonds for new ones.

Therefore the ETFs are only suitable holdings for long - term investors who are will be reinvesting maturing bonds indefinitely.

Short Term Bond ETFs (will fall least in price when rates rise; focusing on bonds maturing in one to five years)

Longer term: With rates on newly issued bonds now higher, reinvested interest and proceeds from maturing bonds will quickly benefit higher expected returns going forward.

Short Term: T - Bills (Not technically a bond, but pretty much the same thing)-- Maturing in less than 1 year

Longer term: With rates on newly issued bonds now lower, reinvested interest and proceeds from maturing bonds will quicklyhave lower expected returns going forward.

While long - term gilt funds can have securities maturing in as long as 30 years, the short term funds typically invest in securities in short maturity period as well as long - term bonds with short term residual maturities.

Just because they are labeled bonds absolutely does not make them conservative investments.Conv ersely, ultra short - term bonds have no sensitivity to interest rates — they mature so fast that higher rates means higher re-investment rates for these maturing bonds — these funds have obviously not appreciated much this year.

Commercial Paper — A short - term commercial bond that matures in less than three months.

The difference lies in their term lengths: Notes mature in two, three, five, seven, or 10 years, whereas bonds mature in 30 years.

When short - term bonds from the lowest rung of the ladder mature, the funds are often reinvested at the long end of the ladder.

In a barbell strategy, an investor invests in short - term bonds, say perhaps some maturing in one to two years and long - term bonds such as those maturing in 30 years.

At the end of the term, the bond will mature and (provided the entity can cover its debts), you'll receive your initial money back, plus interest.