Sentences with phrase «than government bonds of»

However, GICs have higher yields than government bonds of the same maturity, with no additional risk.

Since high - yield bonds have far more credit risk than government bonds of the same maturity, investors should naturally expect higher returns.

Not exact matches

Fill the bulk of your portfolio with a combination of high - rated bonds (weighted toward corporate, rather than government, debt) and high - quality, dividend - paying equities, and you likely won't take a hit.

Japanese government bonds skidded in their worst sell - off in more than three years, despite weaker stocks, accelerating a slide begun in the wake of last Friday's Bank of Japan easing steps that disappointed many investors.

The move is a novel way for the San Mateo, Calif., company to finance the enormous cost of installing panels on thousands of roofs — a typical residential system costs $ 25,000 — while appealing to retail investors who are on the hunt for better rates of return than they can find in savings accounts and government bonds.

B.C.'s relative fiscal stability affords Clark and her government the opportunity to spend their time pursuing their chosen agenda rather than satisfying the needs of the bond market.

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

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.

Rather than follow the Stalin model of turning an agrarian society of Russia into a state - owned industrial superpower like the USSR - killing millions of your own people in the process, incidentally - Myerson suggests that the government own all businesses by buying the stocks and bonds of all businesses as an «investment» in the private sector.

First, he believes that an investor in a low - cost S&P index fund who reinvests all dividends will do better — very likely substantially better — than an investor who buys a 17 - year government bond and reinvests all of his coupons in the same instrument.

While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.

But the bank has taken more extreme measures, such as ramping up purchases to more than 40 percent of the market overall and saying it would control the yield curve by keeping the 10 - year government bond yield around 0 percent.

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

It also appears that the ECB will concentrate on reducing its purchases of government (rather than corporate) bonds, but here issuance is increasing, with the net amount of eurozone government debt set to expand in 2018, in contrast to the contraction seen over the previous 18 months.

[2] Indeed, to my mind, the value of these initiatives has been less the «integration» aspect than the progress made in enabling eight local bond markets to function more effectively for foreign and domestic investors and, not least, for the governments and other borrowers of those countries.

For example, the Bank of Japan is currently targeting the purchase of more than $ 700 billion of Japanese government bonds per year, or approximately 15 % of the country's gross domestic product (GDP).

China is also the biggest creditor of the United States: It owns more US government bonds than any other country.

The idea that real interest rates — that is, adjusted for inflation — will be lower than they have been historically is reflected in the pronouncements of policymakers such as Federal Reserve chair Janet Yellen, the medium - term forecasts of official agencies such as the Congressional Budget Office and the International Monetary Fund and the pricing of government bonds whose payments are tied to inflation.

In recent months, the yield on US corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the yield on government debt, dropping within striking distance of the lows seen post the 2008 financial crisis.

The cash yield on the iShares CDN REIT Sector ETF (TSX: XRE) is approximately 5.45 %, a spread of less than 2 % over the 10 - year Government of Canada bond, which is currently yielding 3.55 %.

For «A» rated corporates, the spread over government bonds of comparable maturity is currently about 100 basis points, which is noticeably wider than a couple of years ago (Graph 32).

Currently, the U.S. Treasury Department is taking far more of it than it should, and mortgage bonds are being propped up artificially with another $ 1 trillion of government guaranteed paper being issued in 2009.

Then look no further than United States government bonds — arguably the most valuable asset of a diversified portfolio.

The bottom line of Draghi's answers was that the ECB would only buy government bonds rated lower than investment grade if the countries are in a bailout programme and the programme is not in a review period.

It's also interesting to examine the changing significance and dynamics of the European bond market in general, which has almost doubled in size since 2005 to more than $ 10 trillion today, including government, investment - grade corporate debt and high yield.

Instead of keeping 20 % in cash, thereby reducing expected risk to 12 %, the investor could move into 10y government bonds with a higher return than cash and even a little bit of negative correlation with equities.

Income potential is generally higher than that paid by U.S. government bonds of similar duration and varies depending on the fund's duration and the quality of its bonds.

As well as indicating the reductions would be concentrated on its purchases of government (rather than corporate) bonds, the ECB subsequently provided details of its previously purchased securities that are set to mature over the next 12 months.

Municipalities have more risk than U.S. government bonds of similar duration and credit quality.

But in the last few episodes of sharp stock market drops, bonds went up (US government bonds are a safe haven asset and appreciate in crisis periods) so the only thing better than 3 months worth of expenses in a money market fund is having 3 + x months worth of expenses in the bond portfolio due to higher bond yields and negative correlation between bonds and stocks.

More than 70 % of the bonds in developed - market government bond indexes today have yields of 1 % or lower, as the chart below shows.

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.

The alternative is a bunch of government bonds that yield nothing (or less than nothing) and that will probably never be repaid.

Dividend stocks currently yield more than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.

The equity market has become a more reliable generator of the reoccurring cash flows that the Boomers need than the government bond market has.»

Just as well, since more than a quarter of JPMorgan's Global Government Bond Index, or $ 6.4 trillion worth of debt, was trading with a negative yield last week.

Indeed, with the US Federal Reserve finally beginning to hike interest rates and half of all European government bonds of less than five - year maturity paying negative yields, it would appear to us that the rate cycle is bottoming.

In fact, a recent report even found that 30 % of millennials would rather invest in cryptocurrencies than stocks or government bonds.

The bond had practically been sold on the blind side of Ghanaians, while the Akufo - Addo government was less than 100 days in office.

Remember, it's not a bank loan type of relationship the US government has with China, it's a bond investor type of relationship, and there are a lot more investors than just China.

Less than one - third of pension - fund assets typically are parked in safer, lower - yielding government bonds and other fixed - income investments.

«Getting on the housing ladder» may sound like an innocuous phrase, but it in fact refers to accessing the most desirable financial asset, capable of increasing our paper wealth many times more than moving job or investing in the stock market or government bonds.

However, Japan also embarked on a process of quantitative easing between 2001 and 2006 similar to that of the UK, buying up government bonds when rock bottom interest rates failed to stimulate the economy, and the process was judged to be less than successful with Japan still facing problems of low growth and falling prices.

However at 10.75 %, the yield on the bond is still much higher than government's initial target of 8.5 % and also higher than the previous one which had coupon rates of 8 % and 8.5 % percent for its $ 2 billion bond issued.

All this goes against the grain of the way that financing U.S. state and local government infrastructure worked for more than a century: through municipal bonds.

The blame for this can often go as much to local press as to citizens themselves, but thanks to Gotham Gazette, an online source for what's happening in the world of NYC government, citizens of the nation's largest metropolis will have to to blame something other than the media if they can't name their borough president or the nuances of the latest bond issue.»

«In 2008 alone, state and local governments spent more than $ 66 billion to improve the overall quality of school facilities, and another $ 400 billion is owed in school improvement and construction bond debt.»

The main takeaway from the $ 190 billion annual spending plan — $ 132 billion in day - to - day general fund spending and the rest in special fund and bond fund spending — is that it sets aside more money than ever for the state's rainy - day fund instead of expanding a range of government services.

It shows that, with each successive transaction, the financial burden has resulted in higher debt - per - student costs as UNO has nearly no other source of revenue other than public transfers via direct subsidies, publicly issued bonds and government contracts.

Dividend stocks currently yield more than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.