Sentences with phrase «than long term bond»

Not exact matches

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.

It buys long - term government bonds, including those with durations longer than three years, in what is dubbed «rinban» market operations.

The longest - term portion of the offering, $ 8 billion of bonds maturing in 30 years, sold originally at 99.4 cents on the dollar to yield 1.95 percentage point more than comparable Treasuries.

These assets are all riskier, in the short run, than plain - vanilla bonds, but a retiree with a long - term time horizon can't afford to shun the rewards that come with those risks.

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.

For instance, under recent scrutiny are negotiable certificates of deposits (NCD), a kind of short - term bond, and niche products like perpetual notes, a long - term debt instrument that can be listed as equity rather than debt on balance sheets.

«Purportedly «risk - free» long - term bonds in 2012 were a far riskier investment than a long - term investment in common stocks,» he continued.

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.

Certainly, it offers an attractive level for longer - term investors such as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to buy bonds rather than equities.

This is nearly double the cushion on offer two years ago — and far larger than the thin insulation provided by longer - term bonds today.

Stocks can make for amazing investments, offering better long - term returns than bonds, precious metals, and most other commonly available in...

Over the long - term the stock market has earned a better return than investing in bonds.

-LSB-...] the long - term returns on bonds will certainly be lower than average based on the current yields.

One of the best economic indicators, the yield curve or the spread between short and long - term bonds remains in positive territory, with the long - term much higher than the short.

As Russ Koesterich points out, cash typically produces lower returns than stocks or bonds, and once you invest for both inflation and taxes, average long - term rates are negative.

Over the past year, the bond yield curve has been positive but flattening (short - term yields remained lower than long - term yields, but the differential has narrowed).

A diverse mix of investments that fits your risk level and timeline: generally, heavier in stocks than bonds when you have a long - term horizon.

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.

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

In short, investors have gained about a 5 % annualized excess return over the long term by investing in stocks rather than bills or bonds.

First, TIPS funds are made up largely of longer - term bonds, and long bonds fall more than short bonds do, when rates go up.

For instance — why would Apple (or these other multinationals) repatriate any cash rather than issue Aussie or Euro bonds which have lower long term rates.

Long - term bond prices fell on disappointment that the Fed will concentrate its purchases in the five - to - six - year maturity area, rather than in longer - dated bonds.

The answer is that Fed policy is the primary factor driving the returns of short - term bonds, meaning that they tend to hold up much better than long - term debt when the Fed is expected to keep rates low as was the case in 2013.

Still, there is emphatically no investment merit in long - term bonds, in the sense that by definition, a long - term investment in 10 - year Treasury securities will lock in a total return of less than 3.4 % over the coming decade.

Since rising interest rates means the bond's fixed rate is not competitive against newly issued bonds at higher market rates, then it stands to reason that longer - term bonds (those with longer to pay at the lower rate) are going to see their prices fall further than short - term bonds.

Policy rate changes affects short - term bond yields much more directly than longer - term yields (see Exhibit 1).

But those future generations will be better off owing lots of money in long - term bonds at low rates in a currency they can print than they would be inheriting a vast deferred maintenance liability.

The biggest focus here was on short - term securities, which tend to be less vulnerable to U.S. Federal Reserve's rate hikes than longer - term bonds are.

Bond prices fall when rates rise, but short - term munis are less sensitive to rate fluctuations than longer - term bonds.

These investors also tend to have a much longer investment horizon and lower return hurdles than shorter - term bond fund managers or leveraged investors.

Long - term data clearly demonstrates that stocks, though more volatile than bonds, have rewarded investors with higher returns.

Even during the 1940's when bond yields were low, stocks were much better values than today, boosting long - term expected returns to about 6 percent.

Short - term bonds tend to be less vulnerable to rising rates than longer - term bonds, while typically providing a higher yield than cash.

Then again, the long - term potential from shares, say, does look much better than from bonds.

Also, over the past forty years or so, intermediate - term bonds have seen drawdowns that are roughly 70 % lower than long - term bonds, on aver... -LSB-...]

Such long - term out - performance makes no sense given bonds are much safer than shares.

Longer ‐ term bonds carry a longer or higher duration than shorter ‐ term bonds; as such, they would be affected by changing interest rates for a greater period of time if interest rates were to incLonger ‐ term bonds carry a longer or higher duration than shorter ‐ term bonds; as such, they would be affected by changing interest rates for a greater period of time if interest rates were to inclonger or higher duration than shorter ‐ term bonds; as such, they would be affected by changing interest rates for a greater period of time if interest rates were to increase.

Long - term bond yields have been quite volatile since the previous Statement, and in net terms are up slightly, although they remain around 1/2 a percentage point lower than in mid 2002.

In a recent post, Long - Term Bonds Behave More Like Stocks Than You Might Think, Lawrence via Fortune Financial fame outlined: It shouldn't be surprising that long - term Treasurys exhibit almost the same degree of volatility as equitLong - Term Bonds Behave More Like Stocks Than You Might Think, Lawrence via Fortune Financial fame outlined: It shouldn't be surprising that long - term Treasurys exhibit almost the same degree of volatility as equitTerm Bonds Behave More Like Stocks Than You Might Think, Lawrence via Fortune Financial fame outlined: It shouldn't be surprising that long - term Treasurys exhibit almost the same degree of volatility as equitlong - term Treasurys exhibit almost the same degree of volatility as equitterm Treasurys exhibit almost the same degree of volatility as equities.

Short term municipal bonds have fared better than their longer term counterparts as money moves out of bond funds.

Short - term bonds have a maturity date one to five years away, intermediate - term bonds have a maturity date 5 to 12 years away and long - term bonds have a maturity more than 12 years away.

Although long - term bond yields have retreated a bit this week, they remain significantly higher than they were a month ago.

Among US government bond ETFs, short - term bond ETFs accumulated more than $ 6 billion in flows, while long - term bond ETFs saw $ 0.3 billion in outflows amid changes in volatility and shifting interest rate expectations (see US government bond ETF flow).

While they produce less income than longer duration fixed income investments over the long term, short duration bonds may experience smaller price swings.

Neither light reading nor cheap (it's hard to find online for less than about $ 75), this book is the most thoughtful and objective analysis of the long - term returns on stocks, bonds, cash and inflation available anywhere, purged of the pom - pom waving and statistical biases that contaminate other books on the subject.

The firm takes a bit more interest rate risk than other short term municipal bond funds and a bit less credit risk a strategy which has contributed to its long term outperformance.

We would have to do capital improvements on our current jail and we would have to maintain all of the corrections officers that we have now resulting in actually paying more money in the long term than if we did not bond out,» says Borchert.

ALBANY — Governor Andrew Cuomo vowed early in his administration to curb New York's practice of borrowing for short - term equipment purchases, arguing instead that the state should only bond for assets when their useful life is longer than the repayment term.

Economists have long been baffled by what they call the equity - premium puzzle: Long term, on average, stocks outperform bonds by a decent margin, yet people tend to put more money into bonds than they do into stolong been baffled by what they call the equity - premium puzzle: Long term, on average, stocks outperform bonds by a decent margin, yet people tend to put more money into bonds than they do into stoLong term, on average, stocks outperform bonds by a decent margin, yet people tend to put more money into bonds than they do into stocks.