Sentences with phrase «term bonds while»

Governments can also buy long - term bonds while selling off long - term debt to help influence the yield curve.

Not exact matches

While I don't presume to read traders» (or trading computers») minds (see Barry ritholtz» note this morning about ex post facto rationalizations), generally speaking there is concern that the «taper» of long term bond purchases will cause bond yields (the percent of interest paid on them) to rise.

While the short - term advantage is a stronger balance sheet, the long - term impact is a degradation of the bond between employer and employee.

Others have noted that if the Fed continues raising short - term rates while long - term rates remain stalled, it could turn the shape of the bond yield curve upside down, a typical signal of recession.

U.S. long - term rates would spike, while investors in Canada would rush to the domestic fixed - income market, setting off a bond rally that would push Canadian yields down «substantially,» said Burleton.

While U.S. savings bonds have lost popularity as a means of long - term savings due to the low interest rates they currently earn, some retirees have been holding on to bonds that were issued when rates were higher.

So while there could be one or even five year periods where longer maturity bonds perform fairly well from these yield levels, over the long - term they're likely to be a poor investment in terms of earning a decent return over the rate of inflation.

Long - term bond yields continue to extend their hostile upward trend, while other market internals continue to diverge as well.

Gross pointed to the long - term success of the Total Return Fund, while acknowledging the tough year the fund saw in 2011, when it experienced significant net outflows after he bet against the bond market.

We assumed that in each period a 30 - year bond is issued at prevailing interest rates (long - term government bond plus 1 %) and that amount is invested for the next 30 years in a portfolio of large - cap stocks while paying off the bond as an amortized loan (as if it were a mortgage).

Should the yield curve steepen, with 10 - year bond yields moving above 2 % while short - term rates are anchored near zero, it would imply that a longer term inflation fear is re-entering the market.

While she expected that bond yields might not fall too much near term as managers would need to allocate some funds to cash bonds, swaps and futures would likely remain under pressure.

It also found that during the same period, the average fixed - income investor earned only a 6.08 % return per year, while the long - term Government Bond Index reaped 11.83 %.

Bond market geeks refer to this as a «flattening of the yield curve,» meaning that shorter - term interest rates rose while longer - term interest rates fell.

For example, an interest rate swap is a derivative whereby two parties exchange, or «swap,» interest payments on a bond; one side might get a constant 3 percent each payment period, while the other gets the LIBOR rate (a benchmark rate that some banks charge each other for short - term loans).

So, it may make sense to gradually reduce the percentage of stocks in your portfolio, while increasing investments in bonds and short - term investments.

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.

During the bond bull market, long - term bonds actually outperformed stocks while high yield bonds came close.

Legg Mason plans to close a deal this month to restructure $ 650 million in debt, a move designed to lock in favorable interest rates for the long term while taking advantage of the market's sustained appetite for corporate bonds.

We define the reflation trade as favoring assets likely to benefit from rising growth and inflation, such as cyclical equities and emerging markets (EM), while limiting exposure to long - term government bonds.

While rising rates hurt bond prices in the short term, for long - term investors the higher interest payments can eventually benefit performance.

But with long - term bonds and non-cyclical equity sectors trading at historically extreme valuations while cyclical sectors trade at valuations below their long - term average, we think that risk aversion is creating numerous investment opportunities for investors willing to build a portfolio of more economically sensitive companies.

The next day, George put 50 percent of the money into an S&P 500 fund, while Karen placed the other half into short - term, investment grade municipal bonds.

While we agree with Alankar that bringing back bond market term premium would restore balance to the financial system, the ineffectiveness of using rate hikes to push up term premium is evident by the on - going curve flattening

You benefit from potential long - term growth and exposure to the broad stock and bond markets, while assuming market risk.

In terms of equities, the S&P 500 had its best month in four years in October, while booming corporate bond sales continued to meet high demand, appearing to reflect confidence in the strength of the US corporate sector as well as the persistence of low market interest rates.

While I think there is some merit in currency matching specific and perhaps shorter - term liabilities via your investment portfolio, I think such matching is better done through the purchase of government bonds in your home currency.

Short - term bonds tend to be less vulnerable to rising rates than longer - term bonds, while typically providing a higher yield than cash.

Short - term U.S. investment grade corporate bond yields have mostly languished below 2 % since 2010 while two - year U.S. government bond yields have hobbled below 1 %, as the chart shows.

For instance, safe and liquid bank deposit accounts and short term Treasuries are yielding close to nothing while there are still high yield corporate bonds delivering double digit returns.

After a while each year a bond will become due and you can use the proceeds to buy into another long - term bond; preferably at a higher interest rate.

While PIMCO was buying up intermediate - term Treasurys like 5 - year notes, BlackRock shied away from intermediate - term maturities and bought up longer securities like 30 - year bonds and super-short maturities like 1 - year notes, in what's known as a barbell strategy.

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.

Other surprises: Inflation fell and long - term bond yields were flat even as the economy improved, while cryptocurrencies posted huge returns.

Among US government bond ETFs, short - term bond ETFs accumulated more than $ 6 billion in flows, while long - term bond ETFs saw $ 0.3 billion in outflows amid changes in volatility and shifting interest rate expectations (see US government bond ETF flow).

While they produce less income than longer duration fixed income investments over the long term, short duration bonds may experience smaller price swings.

IGIH provides exposure investment - grade, US - dollar - denominated corporate bonds while minimizing interest - rate risk by shorting U.S. Treasurys that match in terms of duration.

While it's hard to predict whether stock or bond prices will go up or down in the short term, it's possible to foresee movements over periods of three years or longer, the academy said.

While society has a long way to go in terms of honoring that precious time of bonding and healing, there is still a lot you can do to protect your health (and sanity) within modern postpartum circumstances.

While the terms of Jess and Milly's pre-diagnosis friendship are established in the shorthand of montage and anecdotes, the enduring strength of their bond is immediately obvious — as is the utter devastation of the physical and emotional bombshell thrown into their midst.

Bond trading can be short, or long term and allows bond traders to take a position on future interest rate movements while leveraging the security and stability of government treasurBond trading can be short, or long term and allows bond traders to take a position on future interest rate movements while leveraging the security and stability of government treasurbond traders to take a position on future interest rate movements while leveraging the security and stability of government treasuries.

While it is true that preferred stocks may see price declines as traditional long - term bonds would, the losses may be more than offset by the potential yield.

But also consider whether you would be better off sticking with long - term stock holdings in your taxable account, while buying taxable bonds in your retirement account.

One option for investors seeking to reduce their interest rate risk and increase yield, while still maintaining the overall risk profile similar to a traditional Canadian bond portfolio is the iShares Short Term Strategic Fixed Income ETF (XSI), which seeks to deliver a higher yield with reduced interest rate sensitivity.

Other surprises: Inflation fell and long - term bond yields were flat even as the economy improved, while cryptocurrencies posted huge returns.

Several other iShares ETFs have seen fees cut in half: two bond ETFs with MERs of 0.25 % and 0.3 % (XSH and CAB) have both been cut to 0.12 % while the 0.35 % fee of the iShares Canadian Long Term Bond Index ETF (XLB) has been almost halved to 0.1bond ETFs with MERs of 0.25 % and 0.3 % (XSH and CAB) have both been cut to 0.12 % while the 0.35 % fee of the iShares Canadian Long Term Bond Index ETF (XLB) has been almost halved to 0.1Bond Index ETF (XLB) has been almost halved to 0.18 %.

HFR managed to eke out a 2013 return of 2.12 %, while many longer - term bond funds had small losses last year.

Note that while VTI and the S&P 500 fell about 10 % in the last month, and VEU (non-US stocks) fell about 15 %, the intermediate - term investment - grade bond fund VFICX barely budged.

@pessimist, @cogsy: While bonds and bond ETFs, especially the short - term ones, are low risk, they do have some risk of capital loss.

Instead, by funding an annuity with only a portion of your savings and investing the rest in a diversified portfolio of stock and bond mutual funds for growth potential, you can reap the advantages of an annuity (income you won't outlive no matter what's going on in the financial markets) while still having the remainder of your nest egg invested so it remains accessible yet can grow over the long term.