Sentences with phrase «than the government bond rate»

Wong wants a return potential of about 3 % to 5 % higher than the government bond rate, which puts him into the 5 % to 7 % annual return range.

I use 10 - year swap rates here because they are more comparable than government bond rates.

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.

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.

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.

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 rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in 1981.

Treasury yields retreat on Thursday by falling rates in European government bonds after eurozone inflation data came in weaker than expected.

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.

Treasury yields fall after tepid eurozone inflation data spark German bund rally European government bonds strengthened as inflation weakensTreasury yields retreat on Thursday by falling rates in European government bonds after eurozone inflation data came in weaker than expected.

While spreads between yields on highly - rated corporate bonds and government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate credigovernment bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate crediGovernment bonds rather than concerns about corporate credit quality.

5 year and 10 year government bond yields are lower than my mortgage rate.

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).

Inflation - protected securities would likely outperform nominal government bonds amid higher - than - expected U.S. inflation, but stocks might not easily stomach a sharp upturn in interest rates or Federal Reserve (Fed) hawkishness.

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.

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.

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).

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.

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.

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.

Namely, bond coupon payments are determined by market interest rates, the type of issuing entity (government bonds pay lower coupons than corporate bonds because of lower default risk), the creditworthiness of the issuing entity (AAA companies pay lower coupons than CCC companies), and the maturity of the bond, which we will talk about next.

Debt funds invest in fixed income instruments such as Corporate and Government bonds, are lower - risk investment options for those looking for better interest rates than their bank's savings accounts / fixed deposits.

If one has bought a bond with few years left for maturity and if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to...

Mortgage rates are always higher than the rates on GICs and government bonds of the same term because working that spread is part of how banks make money.

A bond rating is similar to a credit rating, but it applies to the state government rather than to an individual.

Inflation - protected securities would likely outperform nominal government bonds amid higher - than - expected U.S. inflation, but stocks might not easily stomach a sharp upturn in interest rates or Federal Reserve (Fed) hawkishness.

Lower Taxes — The U.S. government taxes most stock dividends at a lower rate than more ordinary income from cash, certificates of deposit, or bond interest payments.

A US government bond, for example, will have a much higher rating than a Syrian government bond due to the relative stability of the former over the latter.

This is quite a different result than earlier this year, when European bond market bonds sold off in fear that a Fed rate hike would lead to a shift away from European government bond markets to the higher yields and high quality of the US government bond market.

The $ 102,000 investment in a four - year college yields a rate of return of 15.2 percent per year — more than double the average return over the last 60 years experienced in the stock market (6.8 percent), and more than five times the return to investments in corporate bonds (2.9 percent), gold (2.3 percent), long - term government bonds (2.2 percent), or housing (0.4 percent).

Unless you've parked your money in government bonds, with their guaranteed rates of return, you need to check on your investments regularly to make sure they're beating the market — and doing so more substantially and less expensively than other, similar options.

We have high yield dividend equities — this is unique to Rebalance IRA — that we use a proxy for a bond fund because interest rates are artificially manipulated by the government and kept artificially lower than they normally would have been if the market had set those rates by its own market forces.

The drawback, however, is that because U.S. government bonds are regarded as the world's safest fixed - income investments, the interest rates they pay investors are lower than those of corporate bonds.

These are bonds paying a high rate of interest because the issuers are of lesser credit quality than government and investment - grade corporate bonds.

The potential leverage created by use of derivatives may cause the Portfolio to be more sensitive to interest rate movements and thus more volatile than other long - term U.S. government bond funds that do not use derivatives.

Corporate bonds are considered to be riskier than government bonds because the investment grade rating of corporate bonds varies depending on the debt issuance and revenue of the company.

In addition, agency bonds issued by Federal Government agencies are less liquid than Treasury bonds and therefore this type of agency bond may provide a slightly higher rate of interest than Treasury bonds.

The first and foremost reason why companies and government prefer issuing bonds over bank loans is that, even though an annual interest is paid to the bond investor, it is almost at all times lower than the interest rates charged by banks on loans, thus saving the government or the company some money.

Corporate bonds pay a higher interest rates (or «coupon») so these bonds are repaid quicker than government bonds, which pay a lower interest rate.

Amusingly enough, Johnson & Johnson is one of the few US companies that has higher rated bonds (by the ratings agencies), than the US government does.

Additionally, in this low - interest - rate environment, the dividend yield offered by dividend - paying companies is substantially higher than rates available to investors in most fixed - income investments such as government bonds.

That's a better yield than you'll get with top - rated government bonds with equivalent maturities.

In 2011, the five big banks in Canada paid out less than 2 % on their RESP's Group providers are fewer and some of these are non-profit foundations — this will explain the higher rate of interest earned (4.7 to 7.4 % in 2011) Students also benefit from additional monies from attrition and enhancement, and group plan fees are up front, yes, but some providers refund some or all of your fees at maturity — you will never see a bank return your fees (or any mutual based investment) Investing in bonds or GIC's is certainly safe, but you won't collect any government grant unless you're in a registered RESP — this can mean 20 - 40 % more money for your child.

The chart below shows how much more volatile stocks have been historically than long - term government bonds (these bonds are highly sensitive to interest rates).

The only fund category displaying red arrows was longer - term government funds, and this bond fund category, sensitive to interest rates, was down less than 1 %.

However, longer - dated U.S. Treasuries (guaranteed by the federal government as to the timely payment of principal and interest) tend to be more rate - sensitive than other types of bonds.

It's true that interest rates are near historical lows: as of early May, 10 - year Government of Canada bonds are yielding just over 1.5 %, and a broad - based bond index fund like the ones I recommend in my model portfolios yield a little less than 2 %.

Because these bonds had the full faith and backing of the United States government, they received high credit ratings and «paid an interest rate that was only slightly higher than Treasury bonds.»

We want a significantly higher return than from a government bond — that's the yardstick, but not if government bond rates are 2 - 3 %.

The investment objective of the Intermediate Bond Strategy is to seek an annual rate of return greater than the annual rate of total return of the Bloomberg Barclays Intermediate U.S. Government / Credit Bond Index.