I just think there are a few
things bond investors need to understand about longer maturity bonds, so I was pointing out the possible risks.
Not exact matches
They get preoccupied with all sorts of
things — elections, central bank policies, the weather — but nothing has dominated
investor thinking as much lately as
bond rates and income stocks.
Global uncertainty may not be a good
thing for U.S. equities markets and exports, but it is driving
investors toward U.S.
bonds, according to Richard Clarida, global strategic advisor and managing director at Pimco.
Bonds issued to finance
things like stadiums, replenishment of a municipality's underfunded pension plan, or
investor - led housing are a few examples of issues that would not qualify for federal tax exemption.
Thriftiness is a virtue because costs are one of the few
things that
investors can control in their portfolios, particularly when stocks and
bonds...
It involves such
things as the development of customised
bond market indexes, and efforts to remove the various small impediments that individual countries have managed, perhaps unintentionally, to put in the way of
investors.
For
bond investors with a medium - to long - term investment horizon,
things are more complicated.
Top 5
things that rocked U.S. markets this week — a surge in
bond yields sparked
investor concerns, crude oil prices snap 2 - week winning streak, dollar extends rally, gold prices struggle, and Bitcoin update
To make
things even more difficult,
investors are increasingly buying to hold to maturity for the simple reason that if spreads are going to tighten, it is difficult to find a replacement once a
bond is sold.
It may be somewhat useful to make comparisons to that period of time to see how certain interest rate sensitive asset classes such as junk
bonds, REITs, dividend - paying stocks or
bonds performed, but my guess is that particular environment doesn't do a great job of showing
investors what a typical rising rate scenario would look like (assuming there is such a
thing).
Although there will still be some amount of buying and selling in the portfolio during that time (for instance, to deal with
things like new
investors buying into the fund or selling a
bond with a declining credit profile), it should be less than what would be experienced in a traditional
bond mutual fund.
The yields on these
bonds reflect
investor expectations about many
things, such as future growth rates and inflation.
I think it's a very careless time for equity and
bond investors from a longer term perspective whereas those of us who are Austrian have a bend for the idea of real money, sound money, and one of the
things that looks pretty attractive in a Ponzi finance global macroeconomic backdrop would be precious metals I would say.
Our first sure
thing was that the Federal Reserve would continue to raise interest rates in 2017, leading many to recommend
investors limit their
bond holdings to the shortest maturities.
One of the good
things about global uncertainty is that
investors seek the security of
bonds, thereby lowering
bond yields.
The first
thing investors, especially retail
investors, should remember is that
bonds and
bond funds are not fixed deposits.
Deciding on the right asset allocation can cause
investors a lot of grief — far too much, in fact, since there is no such
thing as a perfect mix of stocks and
bonds.
Matt Tucker explores common misconceptions about
bond exchange traded funds and provides three
things every
investor should know about this investment vehicle.
The presence of discount
bonds can indicate many
things, such as predictions of falling dividends or a reluctance to buy on the part of the
investors.
For
bond investors with a medium - to long - term investment horizon,
things are more complicated.
While time is passing, many
things can happen to interest rates or to the
bond issuer (whoever borrowed the money from
investors in the first place) to affect the value of the
bonds.
The same
thing can happen in reverse, and sometimes
investors will buy
bonds for above par value, reducing the yield.
Matt Tucker explores common misconceptions about
bond exchange traded funds and provides three
things every
investor should know...
Therefore,
investors should be aware of a few
things before purchasing a
bond.
In the MCT scheme of
things, the entire investment process (including the management of companies) revolves around the needs and desires of Outside, Passive, Minority
Investors (OPMIs) who can never have special knowledge of anything, or control of anything, and whose needs and desires are fulfilled by continuously outperforming, in the stock or
bond market, similarly situated OPMIs, risk adjusted.
This is confusing for many people — after all,
investors regularly complain that
bond yields are low, so shouldn't higher interest rates be a good
thing?
While
bond investors can usually expect to get both the promised interest payments and their principal back at maturity, that isn't a sure
thing with so - called junk
bonds, which are issued by companies with shaky finances.
One
thing I'm trying to figure out is the set of tools an individual
investor needs to invest in
bonds globally.
When I was an actuary interacting with the investment department inside a life insurance company, one of the
things that I learned early was that there was an inpenetrable jargon on the part of the
bond investors that neophytes had to learn.
Non-traditional
bonds provide a hedge against a rise in interest rates, so
investors naturally were looking for a way to avoid what was initially thought to be a sure
thing in 2014 — rising rates.
The unfortunate
thing is that most
investors strictly focus on Treasuries and bread - n - butter investment grade corporate
bonds.
For
investors, here are some
things to consider when a
bond's rating is raised or lowered:
And that's because
investors in the marketplace, whether it's an equity security, a
bond security or any asset class, tend to price these
things into the price of that asset class.
This blog is here for us to share our views on the
things that matter to
bond investors — inflation, interest rates and the global economy — as well as to talk about the
bond markets themselves.
It's the same
thing with the price of a
bond because the amount a
bond investor gets paid (usually) is fixed.