Sentences with phrase «than bonds because»

They provide an ongoing income, and they're even more powerful than bonds because they provide that spending power for as long as it's needed for as long as the person lives.

This also means that stocks have a greater chance for growth than bonds because their success depends on the success of the company.

Not exact matches

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.

So, it is a very different market than it was 10 years ago, and you're going to see a lot of corporate bond issuance as these infrastructure projects go out there, and you can capture some pretty good yields and you know what you're buying because it's a corporate bond.

The BOJ currently makes the distinction because buying long - term government bonds for monetary easing could bind its hands on policy for longer than it wants and make a future exit from ultra-loose easing difficult.

But the simple fact is she just doesn't know, because she doesn't know when the effect of a higher coupon has a more powerful effect on a bond's price than does a shorter term.

It's less relationship - driven than the corporate bond market because there are fewer products to trade, making it more prone to automation.

The U.S. can borrow until Aug. 2 after reaching the US$ 14.29 - trillion limit because of «stronger - than - expected tax receipts» and «extraordinary measures» such as suspending the sale of bonds for state infrastructure projects, Geithner said in a letter to congressional leaders.

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.

The problem: Partly because of Brexit, it's harder than ever to get that income from bonds.

Most investors shy away from bonds because they yield (or return) less than equities and tend to be more complex in nature.

True, the bond market's implied inflation forecast has shot up since last year; but that's almost entirely because of oil rather than economic fundamentals.

Indeed, the big banks currently have a much lower cost of capital than their smaller brethren precisely because the bond market doesn't believe they will ever be allowed to fail.

Only with bonds it's even harder to create a diversified portfolio using individual bonds on your own unless you (a) have a large amount of capital (typically bonds are sold in lots of $ 10,000 or $ 100,000) and (b) know how to trade bonds on the open market (transaction costs can be larger for bonds than stocks because of the spreads and lack of liquidity).

«I would say it's a little bit like we're willing to go with junk bonds rather than AAA stocks because the payoff is big,» he said in a 2013 interview with Bloomberg Television.

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.

My question is, our financial adviser advised against contributing more than what my husband's company will match in his 401K because they only match $ 900 / year and the investment options are very basic — Bond (Fixed Income) or Large Cap (equities).

Because while past performance does not guarantee future results, stocks have historically had larger price swings than bonds or cash.

That's because average stock market returns have been higher than those on bonds and savings accounts over time.

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.

nominal zero coupon bonds trade below par because we expect money to buy less in the future than we do today.

Entities in smaller markets typically issue foreign currency debt in offshore bond markets because they can issue larger, lower - rated and / or longer - maturity bonds than they can (at least at comparable prices) in their domestic market.

This belief effectively subsidizes the industry because it allows banks to borrow much more cheaply in the bond market than they otherwise could, making equity funding proportionately less attractive.

However, we took note of comments from famed investor Jeff Gundlach; that it is wrong to believe U.S bonds are more attractive than those from Europe and Japan because of currency risk.

Because Treasuries are safe, they offer a lower return than riskier debt instruments, such as corporate bonds.

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.

It was problematic because many of those bonds were purchased a time when interest rates were much higher and enjoyed far fatter bond coupons than anything then available on the market.

Many people put more of their investments into bonds as they get older because bonds are traditionally more stable than stocks.

The time to maturity is important because an increase in interest rates affects short - maturity bonds less than it does longer - dated bonds.

Yes the Index - linked fund is more susceptible to interest rate risk than the regular bond fund, but not by the nature of it being a linker, it's because the average duration is longer.

Because bondholders receive a fixed interest rate and get paid before stockholders, bonds are safer investments than stocks.

The financing needs coming due in the first quarter «imply that euro area banks will not have extra money as a result of the three - year auction to purchase European sovereign bonds, using a carry - trade strategy, because the amount of fresh cash is less than the amount of bank debt that will mature during the quarter», Powell wrote recently.

Start - up costs are the one drawback to bonds because individual bonds are generally more expensive than individual shares of stock and financing is not usually offered.

Their cost of capital is a function partly of low interest rates and part of the implicit share price is a function of the fact that investors have looked at equities for dividends rather than bonds for yield because the bond market is so expensive.

This is not because the market considers them less risky than US Treasuries, but because many municipal bonds are considered almost as safe as treasuries AND they have a big tax advantage over treasuries.

This is because while unconstrained funds are still primarily dedicated to fixed income instruments, they behave very differently than traditional bond funds.

However, because the agency bond issuers are guaranteed by the federal government these bonds are generally considered safer than even the safest corporate bonds.

One of the reasons why a lot of folks are getting too attracted to bonds these days is because they pay higher interest rates than the regular bank deposits.

It doesn't help that 10 - year bond yields are still lower than the prospective operating earnings yield on the S&P 500 (the «Fed Model»), not only because the model is built on an omitted variables bias (see the August 22 2005 comment), but also because the model statistically underperforms a simpler rule that says «get in when stock yields are high and interest rates are falling, and get out when the reverse is true.»

It therefore makes sense for financial institutions» bonds to offer less yield than before because their business is considerably less exposed to leverage and risks.

I don't want to mislead in this article because the investments I will be discussing are a bit riskier than FDIC insured certificates of deposit or government bonds.

I don't invest in bonds because my investment horizon is longer than 5 years.

That's in large part because dividend yields have been considerably higher than government bonds in most developed markets including Canada over this time.

The yield to maturity is higher than the 3 % coupon because when the bond expires, I get paid back $ 100 a share.

One final philosophical question: Even if we agree that benevolence is supererogatory in a way that non-malevolence is not, even if we agree that our duty to give and help is much weaker than our duty not to hurt, we can still ask if giving, helping, and bestowing can in some cases become wicked: wicked because it is debilitating to the self - reliance of the recipient; wicked because it deprives one of the capacity to give also to others; wicked because it infantilizes the recipient; wicked because it cements a bond between giver and taker that should be much more evanescent.

What happened to the Armada Bond, was because Spain was and is more IDOLATROUS than England.

It really was a matter here of a great intellectual and moral reformation of the French people, more complete than the German Lutheran Reformation, because it also embraced the great peasant masses in the countryside and had a distinct secular basis and attempted to replace religion with a completely secular ideology represented by the national patriotic bond.23

It is a crucial American ally not only because Israel is the leading military power in the Middle East and a technological powerhouse with more venture capital investment than the whole of Europe (the instrumental dimension of Augustinian realism) but also because of the deep ties between the American founding and the Jewish religion and the strong bonds between Israelis and America's 6.4 million Jews (the moral dimension).

I've been doing this for more than 3 years now and I love the outcome of it because aside from enjoying what I love, I am able to get bond with my family also by baking their favorite cookie or cake.

The sheer ridiculousness of the comments you refer to is freaking hilarious... because obviously these people either a) don't have kids themselves, in which case they have no business intimating that they would make a better parent than you, or b) do, in fact, have children, but SPEND ALL OF THEIR TIME READING BLOGS THAT THEY CAN MAKE DEROGATORY COMMENTS ON INSTEAD OF BONDING WITH THEIR CHILDREN.