Sentences with phrase «than a bond if»

Also, once you invest in a note, it's harder to sell than a bond if you need to raise cash quickly.

Not exact matches

Ultimately these green bonds will only truly be successful if they allow the province to finance transit projects at a lower interest rate than would otherwise be the case.

They can grow by reinvesting their profits, and issuing stocks and bonds, growing much faster than if they had to raise and use their own cash.

If bond yields rise significantly then some analysts have highlighted that they could offer a better investment opportunity than equities.

When Alexandre Pestov, a strategic consultant and research associate at York University's Schulich School of Business, compared buying a two - bedroom Toronto condominium to renting it over the past 25 years, he found that the renter ended up $ 600,000 richer than the owner if he invested the spare cash in low - risk bonds.

Japan has already lost its AAA status, and Fitch Ratings recently warned it might downgrade the country's sovereign debt if it issued more than the planned ¥ 44 trillion in bonds next year.

In essence, if correct, this means there is less price risk in government debt securities than corporate fixed income issues, and therefore the extra 10 % should largely be made up of government bonds rather than corporates and preferred shares.

These corporate fixed - income instruments pay a dividend that is taxed at a more favourable rate than regular bond interest, but you only benefit from this if they are held outside of a registered account.

«If the company restructures or goes into bankruptcy, the recovery value of the bond is greater than the current price,» he wrote.)

The bond that's created over a shared activity is much deeper than anything you would get if you were having a chat in a boardroom or over a drink in a restaurant.

That said, nonprofit bonds tend to be riskier than munis because if, say, a museum or other cultural institution enters financial hardship, it's more difficult for it to bounce back than for a municipality to do so.

If any bond you wanted to sell is either offered only, or down more than a point on the bid side, but HYG or JNK have barely budged, you sell them.

Investors are set to snap up the bonds with an interest rate of less than 3.4 %, the Financial Times reported on Thursday, or about half the rate Sprint would have had to pay if it issued the bonds without any backing.

If a company like iHeart gets in trouble and someone else want its assets, rather than buying the shares, they often buy the debt (bonds and loans) at a big discount.

But more than anyone, Mr. Schäuble has come to embody the consensus that has helped shape European economic policy for years: that the path to sustained economic recovery for financially troubled countries is to slash spending, raise taxes when necessary and win back the trust of bond markets and other investors by displaying commitment to fiscal prudence — even if that process imposes deep economic pain as it plays out.

The difference between the issue price and the face value is treated as tax - exempt income rather than as capital gains if the bonds are held to maturity.

For example, if you hold a bond paying 5 % interest and market rates rise to 6 %, investors would need to pay less for your bond to be compensated for the lower than market rate.

If interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returneIf interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returneif you hold the bond nothing (other than the scenario of a default) happens & your principle is returned.

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

If you believe you have more than 15 years remaining on this Earth, your portfolio should consist of at least 50 % stocks, with the remaining balance in bonds and cash.

If you buy a bond for less than face value on the secondary market (known as a market discount) and you either hold it until maturity or sell it at a profit, that gain will be subject to federal and state taxes.

So if investors expect short - term rates to be zero for another 4 years, it would be reasonable for stocks and bonds to be about 16 % higher than historical valuation norms.

Bondholders can still recoup their original costs if the value of the interest income the bond has generated is greater than the lost principal value.

It helps the economy more, for example, if they put the money toward productive new companies than if they invest in government bonds.

For example, if you're comfortable taking on more risk in exchange for potentially higher returns, your portfolio might be weighted with more stocks than bonds.

The investment minimums for most bond funds are low enough that you can get significantly more diversification for much less money than if you purchased individual bonds.

If you're looking for that kind of protection, bonds should still do their job more times than not.

If your stocks offer a 10 percent return over a year while your bonds return 4 percent, you will end up with a higher percentage of stocks and lower percentage of bonds than you started.

There are other factors impacting bond yields this week, including Friday's jobs report, which could drive yields higher if wages rise more than expected.

The truth is that you can actually make more than a million US dollars if you are able to invest in the right stocks and bonds at the right time when the market forces are all positive.

If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than face value, since other investors are willing to pay a premium for a bond with a higher interest payment.

Yields and market values will fluctuate, and if sold prior to maturity, bonds may be worth more or less than the original investment.

It's just that with rates so low now there's not as much of a cushion if inflation picks up in the future, so volatilty will likely be higher than normal in bonds.

If you want to dig even deeper into why it pays to diversify than take a moment to take our brief Slicing up the Stock and Bond Pie Mini Course found in the right hand column.

We simulate failure rates if today's bond rates return to their historical average after either 5 or 10 years and find that failure rates are much higher (18 % and 32 %, respectively for a 50 % stock allocation) than many retirees may be willing to accept.

the difference between the stated redemption price at maturity (if greater than one year) and the issue price of a fixed income security attributable to the selected tax year; NOTE: Tax reporting of OID obligations is complex; if acquisition or bond premium is paid during the purchase, or if the obligation is a stripped bond or stripped coupon, the investor must compute the proper amount of OID; refer to IRS Publication 1212, List of Original Issue Discount Instruments, to calculate the correct OID

Australia's central bank signaled today it may resume cutting interest rates as soon as next month if weaker - than - forecast growth slows inflation, sending the local currency and bond yields lower.

This means that if interest rates rise the price of a high duration bond will fall more than the price of a low duration bond.

Note that this only works if the issuer remains healthy enough to pay off the bonds at maturity and you don't need the cash sooner than whenever your bond matures.

And if you can buy some business that earns high returns on equity and has even got mild growth prospects, you know, at much lower multiple earnings, you are going to do better than buying ten - year bonds at 2.30 or 30 - year bonds at three, or something of the sort.»

What's more, buying bonds in offshore centers lowers their administrative burden and makes investors less likely to be affected by capital controls than if they buy domestic securities.

This will allow me to achieve my passive income goals much faster than if I were to invest in stocks, bonds, CD's, or other sources of passive income.

For passive investing I think Lars has it about right, but I know many investors (including myself if I invested passively) who would add in cash to reduce risk rather than just tilt between stocks and bonds, both of which are volatile.

If you're looking for safety and a lower probability for losses during stock market corrections, high quality bonds should still prove to help more often than not.

If you are younger, say under the age of 35, then you can probably withstand a little more risk in your portfolio and will invest more in stocks and other assets rather than bonds.

And if the fiscal problem becomes unstable — more deficit to finance than security markets will allow, the Fed will obey its political masters and finance the deficit by a hyper - inflation, or hyper - tax, as a burgeoning inflation simply taxes all fixed dollar wealth — bonds, dollars, life insurance values, etc. — by the rate of price level increase.

If the banks can borrow at less than 1 % in the short - term inter-bank market, and get nearly 4 % on Treasuries, or 5 % on government - guaranteed mortgage bonds, why should they ever bother doing anything else?

European bonds have even lower yields than dollar - denominated bonds and, if they have less chance of capital losses in 2017, they are unlikely to add a capital gain to those piddling yields.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

If you think about it, if you are long government bonds that yield less than 1 % (or negative), you are massively short optionalitIf you think about it, if you are long government bonds that yield less than 1 % (or negative), you are massively short optionalitif you are long government bonds that yield less than 1 % (or negative), you are massively short optionality.