Sentences with phrase «term bonds usually»

Long term bonds usually offer a higher interest rate because of the unpredictability of the future.

The trade - off is that longer - term bonds usually offer higher rates to start out.

A longer - term bond usually involves more risk that the borrower will default, or interest rates will change, or the lender will find a better potential use for their money.

Not exact matches

Bond prices rise when interest rates fall, and vice versa; the effect is usually more pronounced for longer - term securities.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

Having stocks, bonds and gold rise in tandem is likely a short term phenomenon since these asset prices usually move in different directions.

Bonds often experience short term fluctuations but usually generate higher long term returns.

The money is usually divided amongst a number of investment vehicles including stocks, bonds, and short - term money market instruments.

Attachment is a term that refers to a psychological and biological event - it is the affectional bond that develops between a primary caregiver, usually the mother, and her infant.

However, an aspect of leveraged loans that was not developed in this article is that the loans are secured by the assets of the operating company and the terms are usually superior to those of high - yield bonds, which are generally unsecured.

Generally issued by blue - chip companies, they are shares that act like bonds, promising a set payout over a set term and usually varying little in price.

Historically, a broadly diversified portfolio of stocks (now easily obtained with one or two index mutual funds) has usually provided much higher long - term returns than bonds or cash, but with inevitable, dramatic ups and downs (volatility) that can be very stressful.

Usually, we would expect longer term bonds to have a higher yield to compensate for the risks of higher rates and inflation in the future.

If your goal is to maximize your interest income, you will usually get higher coupons on longer - term bonds.

[3] Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks typically remain outstanding indefinitely.

bonds that contains a provision allowing the holder to exchange the bond for a specified number of shares of a different security (usually common stock) issued by the same company that issued the bond; terms of conversion are disclosed at the time the bond is issued

the area or activities to which the funds raised from a municipal bond issue will be directed and, in turn, the source of future bond interest payments and principal repayment; for general obligation bonds, funds raised may be for general purposes, both operating and infrastructure, and payments are secured by the general taxing power of the issuer — usually a state, town, or city; revenue bonds are categorized under terms such as «Utilities» or «Transportation»

Longer maturity bonds usually have a higher yield to maturity than the shorter - term bonds.

Short - term bonds with maturities of three years or less will usually have lower yields than long - term bonds with maturities of 10 years or more, which are more susceptible to interest rate risk.

Short - term bonds command a lower interest rate than long - term bonds (usually) because of their quicker maturity, but short - term bonds carry risk just like long - term bonds (though the interest rate risk is lower, sometimes quite a bit lower, than for long - term bonds).

Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely.

For example, a plot of all bonds against a theoretical (usually zero coupon) yield curve show «rich» (overvalued) bonds with lower yields than bonds of similar credit and term, or «cheap» (undervalued) bonds with higher yields than bonds of similar credit and term.

However, the term balloon maturity is usually reserved for serial bonds.

A bond, debenture or preferred share which may be exchanged by the owner, usually for the common stock of the same company, in accordance with the terms of the conversion privilege.

Margin for options on futures is a performance bond deposit that earns interest because it is usually held in the form of short - term Treasury bills.

Long - term liabilities are usually in the form of notes or bonds.

Like regular bonds, medium term notes are registered with the Securities and Exchange Commission (SEC) and are also usually issued as coupon - bearing instruments.

You start out with a long - term tax - exempt municipal bond, usually highly rated.

While they are generally more inexpensive than their regular bond counterparts in terms of expense ratios due to their lower portfolio rebalancing and turnover, it is also true that they usually incur wider bid - ask spreads due to the low volumes triggered by the inactive trading thereby increasing the total cost of investments in them.

Bonds generally present less short - term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall), issuer default risk, issuer credit risk, liquidity risk and inflation risk.

These bonds are bought by investors on the open market for less than their face value, and the company uses the cash it raises for whatever purpose it wants, before paying off the bondholders at term's end (usually by paying each bond at face value using money from a new package of bonds, in effect «rolling over» the debt to the next cycle, similar to you carrying a balance on your credit card).

At the end of the term, known as the maturity date, the bond issuer will pay off the face value of the bond, which is usually $ 1,000 per bond.

The French word for «slice», tranche usually refers to part, segment or portion of an investment issue such as a specific class of bond or mortgage backed security within an offering in which each tranche offers different terms including varying degrees of risk.

That's why you would usually want to devote only a portion of your assets to these types of annuities, leaving plenty of other savings for assets such as stock and bond funds that can provide liquidity and long - term capital growth.

But these are future goals, usually planned for with riskier and generally longer term investments such as stocks and bonds.

If you're a long - term investor who won't need to tap your portfolio for 10 years or so, a broad - market bond ETF is usually a better core holding.

The portfolio might invest in a particular type of bond (government, municipal, mortgage or high - yield) or a particular maturity range (short - term: three years or less; intermediate term: three to 10 years; or long - term: usually 10 years or longer).

This is usually because your slice of the general account your tranche was invested in is permanently linked to the long - term low - interest bearing bonds that were actually bought.

It's also striking to note that, even setting aside the opportunity cost of forgoing bond yields, share prices themselves, measured in real terms, are usually struggling to recover a past loss, rather than lofting to new highs.

Convertible bonds may be converted into shares of another security — usually common stock — under certain terms stated in the indenture.

The terms of a «peace bond» usually entail a person agreeing not to be in contact with another person.

these terms are usually worked out in a resolution meeting with the Crown before the accused agrees to enter into the peace bond in court.

It's usually a combination of rate changes, inflation and economic conditions, though home loan rates are often linked to yields on long - term, 10 - year treasury bonds, which themselves have seen an increase of nearly one percentage point since the most recent presidential election.