Sentences with phrase «term yields to maturity»

As the word «flat» suggests, this yield curve is a shape in which the short - and long - term yields to maturity are similar to each other.

Not exact matches

Yield to maturity is considered a long - term bond yield, but is expressed as an annual Yield to maturity is considered a long - term bond yield, but is expressed as an annual yield, but is expressed as an annual rate.

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.

As a rule, a good estimate of the «yield - to - maturity» on stocks is the 6 % long term growth rate plus the dividend yield.

Intermediate - term Treasury prices reflect a yield - to - maturity of about 2 percent over the next decade.

It is important to note however, that at times, abnormal economic factors can cause the yield curve to «invert» — i.e., short - term rates rise above longer - term rates, or to be «flat» across the maturity spectrum.

To boot, short - term yields now provide a thicker cushion against further rate rises than longer maturities.

Alternatively, you might purchase longer - term CDs to get a higher yield, figuring that higher yield will compensate for any early - withdrawal penalty, should you need to cash out before maturity.

Yield to maturity is considered a long - term bond yield, but is expressed as an annual Yield to maturity is considered a long - term bond yield, but is expressed as an annual yield, but is expressed as an annual rate.

At the current term to maturity of seven years and with a size of $ 1 billion, it's expected that the loan could yield investors between 5.28 - 5.47 % to maturity.

The bond's coupon and term to maturity are used in determining the bond's market price and its yield to maturity.

Investors and fund managers search for yield, extend maturities, reach for lower credit quality and shift assets from short term floating rate money market funds to bonds, bond funds and similar investments.

As you can see, the barbell ETFs are almost identical in yield to maturity, similar or lower in average term to maturity, and significantly shorter in duration.

Today, a traditional bond index exchange - traded fund (ETF) with an average term of about 10 years has a yield to maturity of about 1.7 %.

The problem is, the iShares DEX Short Term Bond (XSB) has a yield to maturity of just 1.38 % these days — once you deduct fees, that's less than a savings account at an online bank.

Longer term TIPS bonds are an excellent choice whenever the yield to maturity is above 2 %.

If interest rates continue to fall, we have exposure to longer term maturity bonds with a higher yield, and we may also be able to generate some capital gains as well.

You won't see the same returns as long - term laddering, but at least you get access to your money, the best current CD rates for low maturities, and a better yield than a savings account.

Short term funds that hold bonds with maturities from 1 to 3 years are less susceptible to rising yields.

In general terms, yields increase in line with maturity, giving rise to an upward - sloping yield curve or a normal yield curve.

Average yield to Maturity - Average Yield to Maturity represents the weighted average yield to maturity of a Fund's investments in money market securities and short - term fixed income securities as of a specified yield to Maturity - Average Yield to Maturity represents the weighted average yield to maturity of a Fund's investments in money market securities and short - term fixed income securities as of a specifiMaturity - Average Yield to Maturity represents the weighted average yield to maturity of a Fund's investments in money market securities and short - term fixed income securities as of a specified Yield to Maturity represents the weighted average yield to maturity of a Fund's investments in money market securities and short - term fixed income securities as of a specifiMaturity represents the weighted average yield to maturity of a Fund's investments in money market securities and short - term fixed income securities as of a specified yield to maturity of a Fund's investments in money market securities and short - term fixed income securities as of a specifimaturity of a Fund's investments in money market securities and short - term fixed income securities as of a specified date.

Laddering is a strategy of using CDs with different maturity dates to provide liquidity while still enjoying the higher yield available from longer - term CDs.

Bonds come with varying maturity periods, which can range from as little as one month to up to 30 years So, when speaking of interest rates (or yields), it is important to understand that there are short - term interest rates, long - term interest rates and any number of points in between.

The yield curve describes the shapes of the term structures of interest rates and their respective times to maturity in years.

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

To boot, short - term yields now provide a thicker cushion against further rate rises than longer maturities.

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.

If you're willing to take on more credit risk, you can opt for the Vanguard Short - Term Corporate Bond ETF (TSX: VSC), which has a yield to maturity of 2.0 %.

The benchmark is similar to the widely followed DEX Universe Bond Index in average term (about 10 years), yield to maturity (about 2.5 %) and duration (about 7 years).

The Vanguard Short - Term Bond ETF (TSX: VSB) has a yield to maturity of 1.3 %.

The present value of the principal outstanding at the date of maturity is calculated at an interest rate differential discounted at the «Yield of Government of Canada Bonds» on the market with the equivalent term to maturity plus 0.90 %.

Treasury yields across maturities rose leading up to the meeting, with short - term rates rising the most as markets took into account the Fed's expected pace of three to four rate hikes in 2017.

A term that is commonly used is the yield - to - maturity (usually abbreviated to YTM).

Flat Yield Curve - This curve indicates the yields of bonds with different maturities are relatively constant, and is seen when interest rates are expected to decline moderately but offset by positive term premium.

Keep your long term bonds to maturity, this is the only solution to keep your yield safe.

In our analysis, quarterly yield differences (after MER) and maturity differences between XSB and XBB were examined to determine when a switch from one to the other would have made sense (i.e. would have given us an additional 0.15 % of annual expected yield for each additional year of term risk).

As a rule, a good estimate of the «yield - to - maturity» on stocks is the 6 % long term growth rate plus the dividend yield.

«ZAG is similar to both VBG and VBU in terms of duration but has a modestly lower effective yield to maturity than VBU.

One tip: You may find you can come out ahead by buying longer - term CDs, with their higher yields, even if you have to cash out before maturity and pay an early - withdrawal penalty.

Historically, you have earned much of the yield of longer - term bonds by purchasing securities with five years or less to maturity.

If you evaluate municipal bonds by the traditional criterion, the yield ratio of municipal bonds to Treasuries of the same maturity, munis are incredibly cheap: All along the yield curve, munis yield, in absolute terms, anywhere between 150 % to even 300 % of Treasuries.

In most interest rate environments, the longer the term to maturity, the higher the yield will be.

During the life of a medium - term debt security, the issuer may adjust the term of maturity or the nominal yield of the bond according to the issuer's needs or the demands of the market - a process known as shelf registration.

To learn more about yield to maturity or any of the above terms, click on theTo learn more about yield to maturity or any of the above terms, click on theto maturity or any of the above terms, click on them.

When you plot them (yield on Y, term to maturity on X) you get a yield curve.

Intermediate - term Treasury prices reflect a yield - to - maturity of about 2 percent over the next decade.

The two funds will be very similar in average term to maturity, duration, credit quality, yield to maturity and management fee (0.20 %).

When the economy is transitioning from expansion to slower development and even recession, yields on longer - maturity bonds tend to fall and yields on shorter - term securities likely rise, inverting a normal yield curve into a flat yield curve.

The increasing onset of demand for longer - maturity bonds and the lack of demand for shorter - term securities lead to higher prices but lower yields on longer - maturity bonds, and lower prices but higher yields on shorter - term securities, further inverting a down - sloped yield curve.

When investors expect longer - maturity bond yields to become even higher in the future, many would temporarily park their funds in shorter - term securities in hopes of purchasing longer - term bonds later for higher yields.