Sentences with phrase «term bonds offer»

According to The Four Pillars of Investing, investors should keep their bond terms short because long - term bonds offer little extra return for taking on a higher interest - rate risk and long - term bonds have a larger decrease in price in a rising interest rate environment.
When rates are low, focusing on short - term bonds offer the least amount of risk.
I've learnt recently (thanks to Investing Intelligently and Efficient Market Canada) that bond investors should keep fund duration as short as possible because longer - term bonds offer little extra return for taking a higher interest - rate risk.
Although longer - term bonds offer higher yields, they don't necessarily offer enough of a return premium to justify the higher risk when compared to short - term bonds.
Corporate Bond — A long term bond offered by a corporation in an effort to raise outside funds.

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.
We believe that long - term tax - free municipal bonds that offer near - 4 % yields (a 6.62 % taxable equivalent at today's top rate and 6.15 % even at the new proposed top rate of 35 %) still offer superior value.
Neither argument holds right now for holding any tactical cash, especially with no reasonable prospects for a near - term rate increase and the yield differential offered by bonds over cash right now.
Although the retailers have been negotiating with bond holders, who have accepted significant discounts and offered longer terms, the basic financials are enough for Moody's to rate 13.5 percent of the retailers it follows as a Ca or Caa credit risk.
Certainly, it offers an attractive level for longer - term investors such as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to buy bonds rather than equities.
This is nearly double the cushion on offer two years ago — and far larger than the thin insulation provided by longer - term bonds today.
Many funds companies, including Vanguard and Fidelity, offer short - term bond funds that will likely outperform during a rising interest - rate period.
Stocks can make for amazing investments, offering better long - term returns than bonds, precious metals, and most other commonly available in...
These investors may have to accept lower long - term returns, as many bonds — especially high - quality issues — generally don't offer returns as high as stocks over the long term.
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.
Short - term government bonds generally offer stability and low growth and are the bungee in your portfolio that slows its decline in value when equities plunge.
The trade - off is that longer - term bonds usually offer higher rates to start out.
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.
Oh, and it's offered at a net fee of 25 basis points1, which is lower than 95 % of the funds in the Morningstar Intermediate Term Bond category (source: Morningstar as of 3/15/2018).
The implication is that long - term bonds, which may not offer much income, can help provide an effective hedge in equity - heavy portfolios.
Meanwhile, emerging market bonds that make up the J.P. Morgan EMBI Global Core Index, currently offer similar yields and may benefit from global reflationary trends despite the potential challenge of higher valuations and a rising U.S dollar in the short term.
If short - term volatility keeps you up at night, you may consider moving to a more conservative portfolio with more bonds, which are more stable but typically offer lower returns, and fewer stocks.
Borrowers issued the fewest bonds in Australia in almost three years last quarter as Europe's budget crisis roiled markets, driving up yield premiums, while the nation's banks used record term deposits to cut debt offerings.
Outright Monetary Transactions are a bond - buying program announced in September 2012 in which the European Central Bank would offer to purchase eurozone countries» short - term bonds in the secondary market to bring down the market interest rates faced by countries subject to speculation that they might leave the euro.
It's so important to find like - minded parents who can offer their «been there, done that» stories, emotional scaffolding, and specific suggestions for when you feel confused as to what to do about your child's behavior, or when you question whether this new thing you're trying, like positive discipline instead of spanking, for example, is going to work out in the long term, or how exactly to keep those family attachment bonds strong as your children grow, or how to move forward when your family encounters challenging life circumstances.
The book also offers strategies that help create long - term bonds in which both the Sugar Daddy and the Sugar Baby are satisfied with their relationship arrangement.
Before this, we're treated to trite scenes of them training and bonding, but we're offered little in terms of character development to actually care about any of them.
At this point, it would appear as if some fans are more than ready for the mantle of James Bond to be taken up by someone other than a white dude — but in terms of talks happening behind closed doors, one name is being offered up: Tom Hiddleston.
The implication is that long - term bonds, which may not offer much income, can help provide an effective hedge in equity - heavy portfolios.
Posted fixed mortgage rates have always been above government bond yields so paying off your house will offer a higher return over the long - term.
I offered a chunk of the bonds 0.2 % below the last trade in spread terms, without guaranteeing the level.
They offer us four index funds (S&P; 500, S&P; 400, S&P; 600 and Total Bond Index), and other active management funds that have rather poor long - term records; with the exception of the American EuroPacific fund.
Outright Monetary Transactions are a bond - buying program announced in September 2012 in which the ECB would offer to purchase eurozone countries» short - term bonds in the secondary market to bring down the market interest rates faced by countries subject to speculation that they might leave the euro.
They also typically offer better returns than short - term bonds.
Short - term bonds, however, offer a simple way to save money while securing a small return on the investment.
Government bonds offer similarly low yields, even for 10 - year terms.
It also exceeds the meagre 2.5 % yield offered by long - term Canadian government bonds.
If the company chooses to restructure, they might offer a tender to pay off the bond early and issue a new bond on different terms, but the coupon is fixed for the life of the bond.
Long term bonds have higher interest rate risk, but offer high yields.
Long term bonds usually offer a higher interest rate because of the unpredictability of the future.
While the portfolio of high - quality bonds may offer additional return potential, long - term investment grade bonds are subject to substantial interest rate risk.
So short term bonds have less interest rate risk, but offer much lower yields.
Oh, and it's offered at a net fee of 25 basis points1, which is lower than 95 % of the funds in the Morningstar Intermediate Term Bond category (source: Morningstar as of 3/15/2018).
That means there's lots of supply of longer - term muni bonds, so issuers have to offer higher yields to sell them.
At Webster, we offer your company a variety of these bills, notes, and bonds — great for your short - term or long - term investment needs.
Term preferred stocks and baby bonds offer some of the best fixed - rate bonds to buy on today's market.
Read through the offer documents and check to see whether the mutual funds identified meet your investment needs in terms of equity share and bond weightings, downside risk protection, tax benefits offered, dividend payout policy, sector focus and other parameters of relevance to you.
the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event, generally expressed as an annual percentage of the bond's face value; for example, a bond with a 10 % coupon will pay $ 100 per $ 1000 of the bond's face value per year, subject to credit risk; when searching Fidelity's secondary market fixed income offerings, customers can enter a minimum coupon, maximum coupon, or enter both to specify a range and refine their search; when viewing Fidelity's fixed - income search results pages, the term «Step - Up» instead of a numeric coupon rate means the coupon will step up, or increase over time at pre-determined rates and dates in the future; clicking Step - Up will reveal the step - up schedule for that security
The income offered on DIAs will vary over time as market conditions change, being driven most notably by longer - term Treasury and investment grade corporate bond yields.
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