Sentences with phrase «than bond interest»

Yes, stock dividends are less secure than bond interest.

Dividends are generally taxed at a more favorable rate than bond interest, plus — and this is the biggest selling point — healthy companies tend to raise their dividends over time.

Plus, in non-registered accounts, those dividends are taxed at a lower rate than bond interest.

Not exact matches

The plan will wipe out more than $ 200 million in bonds held by the retailer in exchange for equity interests.

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.

In a client note on Thursday titled «Yanking down the yields,» the interest - rates strategist projected that bond yields would be much lower than the markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.

Decades of falling interest rates has taught individual investors that bonds are safer than stocks.

It's similar to the U.S. government's quantitative easing, but rather than trying to buy government bonds to push interest rates lower — rates are already at zero — the goal is to push the yen down and combat chronic deflation.

Bond yields rose after Fed Chair Jerome Powell laid out a case where the Fed could raise interest rates more than it currently forecasts.

While Fink is right to point out that low interest rates are putting a large burden on those of us trying to save retirement, he does not address the fact that central banks aren't primarily responsible for the fact that bonds of all types are yielding less today than we're used to.

The caveat with this method is that bonds and annuities typically come with long - term interest rates, and from a wealth perspective, that's more dangerous than short - term ones.

That's significantly higher than the 4.63 % interest it got when it issued bonds to fund its own buyout a few years ago.

As the Christian Science Monitor noted, that's probably a more realistic concern for China, which holds $ 1.3 trillion in U.S. government bonds, than Washington missing interest or principal payments.

Deutsche Bank and or / its affiliate (s) has a significant Non-Equity financial interest (this can include Bonds, Convertible Bonds, Credit Derivatives and Traded Loans) where the aggregate net exposure to the following issuer (s), or issuer (s) group, is more than 25m Euros.

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.

With interest rates so low, stocks are better than bonds, but the Canadian market, he says, should see mid-single-digit returns.

The bond market is betting the Fed could have to raise interest rates more than the three times it has forecast.

The simplified explanation for this aberrant investing disaster was a dramatic rise in interest rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in 1981.

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.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

While it's still not known when interest rates will go up and by how much, what we do know is that the bond market is at greater risk to rising interest rates than at any time in recent history.

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 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.

In a zero - interest rate world (Figure 7), these provide yields that are much higher than those found in more conventional investments like U.S. Treasury bonds or money market accounts.

BERLIN — Throughout the month, countries caught in the eye of the European financial storm, including Italy, Spain and France, have repeatedly defied expectations, selling big batches of bonds to the public at interest rates significantly lower than investors demanded at the height of the euro crisis late last year.

Because most wealthy Chinese seem to think about RMB in terms of USD or Hong Kong dollars, it is the fear that any depreciation of the RMB against those two currencies (the Hong Kong dollar is pegged to the USD through a modified currency board) greater than the couple of percentage points interest rate differential would yield less than equivalent USD or Hong Kong dollar bonds.

The fund may invest in asset - backed («ABS») and mortgage - backed securities («MBS») which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other bonds.

a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that usually includes interest; they have higher price volatility than coupon bonds as a result of interest rate changes

Despite the mainland's capital controls, its bond market joined the global market ructions on Thursday after the U.S. Federal Reserve surprised by saying it expected to hike interest rates three times next year, rather than the previously forecast two hikes.

As a percentage of GDP, more than half of the outstanding sovereign bonds in the developed world originated from countries or regions where negative interest rate policies are in place, primarily representing bonds from the euro zone and Japan.

Since changes in interest rates impact bond funds differently than bonds and CDs, estimates of price sensitivity may be less accurate the larger the shift in interest rates.

Bonds, stocks and real estate, he writes, are overvalued because of near zero percent interest rates and a developed world growth rate closer to zero than the 3 % to 4 % historical norms.

Most bonds provide regular interest income and are generally considered to be less volatile than stocks.

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.

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.

All else equal, unless it possesses some sort of major offsetting advantage that makes the risk of non-payment low, a company with a low - interest coverage ratio will almost assuredly have bad bond ratings, increasing the cost of capital; e.g., its bonds will be classified as junk bonds rather than investment grade bonds.

Investment grade bonds are considered to be lower risk and, therefore, generally pay lower interest rates than non-investment grade bonds, though some are more highly rated than others within the category.

Even more interesting than the action in the stock market was the action in the bond market.

Stocks are being retired by corporate raiders in exchange for high - interest («junk») bonds, and by corporations using their earnings to buy their own stocks rather than to make new direct investments.

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.

Investing in high yield fixed income securities, otherwise known as «junk bonds», is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

It's not just that future returns will be lower from current interest rate levels than they've been in the past; it's that volatility in bonds will be much higher from -LSB-...]

And after the financial crisis, individuals also wanted to earn more income than they could in bonds and CDs amid ultra-low interest rates.

What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?

Persistently low interest rates, weak inflation and a lack of supply relative to demand for bonds leaves Rieder advocating for equities rather than the fixed income market.

Thus fluctuations in interest rates will cause the total return on bonds to fluctuate, with long - term bonds fluctuating more than short - term bonds.

-- Goethe What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?

However, high - yield (junk) bond funds and international bond funds can be affected by factors other than interest rates.