Sentences with phrase «time bond investors»

Not exact matches

And so what the Fed is basically saying here is that because investors are using mutual funds to invest in bonds, instead of owning the bonds, there could be a problem if investors all want to leave at the same time.

Also, a bond fund is only going to have so much cash on hand, so if the investors in a certain fund all want to redeem their shares of the fund at the same time, it will pose problems for the fund manager trying to meet redemption requests.

So, secure the meeting, bond with the investor, and use the time to determine and answer all of his questions.

One way to truly grow your income is to buy more annuities, in which the investor has to pay you annual sums, as well as bonds that will also pay out over time.

However, if rates are about to head higher for an extended period of time, investors may want to consider shortening up the maturities in their bond portfolios.

Investors can still play it safe by buying well - known, large - capitalization stocks, he notes, but it may be time to move money out of bonds, which continue to experience record inflows, and into stocks.

Many investors who bought mortgage bonds during that time ended up with big losses.

More from The New York Times: For Bond Investors, Low Expectations in a Low - Yield World Emerging Market Bonds Are on a Roll.

«Investors were saying that the bond market was done and it was time to reallocate into divided - paying equities,» said Matt Hougan, president of ETF.com, but he says that trend hasn't sustained itself.

Investors are set to snap up the bonds with an interest rate of less than 3.4 %, the Financial Times reported on Thursday, or about half the rate Sprint would have had to pay if it issued the bonds without any backing.

«Japanese investors, because they have a hard time getting ahold of those bonds, they're increasingly looking for alternatives,» said Brian Nick, chief investment strategist at Nuveen.

With stocks trading near all - time highs and bond yields still relatively low, some investors have turned to alternative asset classes.

Investors have had a long time to digest the taper news: Their reaction to the Fed actually shrinking the size of its bond purchases is likely to be smaller than their reaction in anticipation of such a move.

Unlike mutual funds, individual bonds provide the investor with the ability to control the timing of gain / loss realization and the resultant tax impact.

While higher rates may cause investors to reconsider their bond allocations, they may provide relatively stable income and act as a diversifier in times of market stress.

According to fund tracker Morningstar: «A mutual fund is a basket of stocks, bonds or other types of assets that is professionally managed by an investment company on behalf of investors who don't have the time, know - how or resources to buy a diversified collection of individual securities (stocks, bonds etc.) on their own.

But over longer time frames bond investors also have to be aware of inflation risk.

In time we think investors will come to realize that, on fundamentals, French government bonds should be trading much further out.

High - quality bonds protect investors during times of market stress and deflation, providing a diversification benefit with little - to - no correlation to stocks in the short - term.

At the same time, investors who may be unsure about the prospects of equities and bonds seem to be starting to allocate more money to hedge fund strategies that aim to capture alpha in both up and down markets.

John Bogle at Vanguard wasn't engaging in market timing when he looked at the returns on stocks versus the returns on bonds during the dot - com bubble and decided that investors were faced with a once - in - a-lifetime mispricing event.

The past decade has been a relatively good time for companies to hold debt as funding costs were low and bond investors were willing to snap up virtually any new offering.

If markets are efficient and long - run risk is real, then bond investors should have outperformed equity investors some of the time.

But for most investors, bonds offer a solid bulwark during times of tentative economic growth and volatile equity markets.

Bonds, however, the investor's go - to asset class for safety, have experienced two separate corrections of 10 % or more in that time when looking at long - term U.S. treasury bBonds, however, the investor's go - to asset class for safety, have experienced two separate corrections of 10 % or more in that time when looking at long - term U.S. treasury bondsbonds.

«The energy sector posted stronger returns in September due to a rebound in oil prices which helped lift Canadian equities, while the bond market slipped into negative territory after strong Canadian economic growth led the Bank of Canada to raise interest rates for the first time in seven years,» said James Rausch, Head of Client Coverage, Canada, RBC Investor & Treasury Services.

This is especially true at a time when some investors have lost faith in this principle following several notable episodes in recent years when stock and bond prices moved together.

At the time of purchase for the fund's portfolio, the ratings on the bonds must be one of the four highest ratings by Moody's Investors Services (Aaa, Aa, A, Baa) or Standard & Poor's Corporation (AAA, AA, A, BBB).

And some investors may listen to their advice, believing they can reach their investment goals by buying and selling stocks and bonds at exactly the right time.

Most investors experienced some financial pain during that time, but some fled both stocks and bonds and went entirely into cash because they couldn't stand watching their investments plummet.

Bond investors have had it pretty good for some time now.

It has been a long time since investors faced a sustained period of rising rates, so it may come as a shock to be reminded that your bond funds can lose money.

This makes bonds a relatively heterogeneous asset class in which many securities are thinly traded.3 At the same time, institutional investors often hold assets to maturity and, when they do trade, do so in large amounts.

The bond market is chiefly set up for institutional investors who trade $ 1 million or more in face amount of bonds at a time and retail investors have largely been left to do as best they can.

It's defined as the weighted average of the payments an investor will receive over time, discounted to the bond's present value.

If the stock market happens to crash around the time you are ready to retire, a too true fact for many in 2008, the bond investor doesn't have to worry because his money is safe.

If these investors are correct, and the mainstream consensus of another banner year for both stock and bond markets isn't, Doug Casey's words may prove to be an omen of rough times ahead.

She's promised to increase the federal minimum wage and will call on Congress to mandate that investors hold on to stocks and bonds for a minimum time period, to curb Wall Street's so - called «churn and burn» reputation, and to reduce «investment speculators.»

Here's some advice from one of the most successful investors of all time, Warren Buffett: Put 90 percent of your 401 (k) balance in a very low - cost S&P 500 index fund, and the remaining 10 percent in short - term government bonds.

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.

If interest rates rise between the time a bond is originally purchased by the fund and the time that same bond is sold, this will create a capital loss for the fund and potentially its investors as well.

You should also note a bond's duration, which Vanguard explains «represents a period of time, expressed in years, that indicates how long it will take an investor to recover the true price of a bond, considering the present value of its future interest payments and principal repayment.»

For the first time since the global financial crisis, investors can earn positive after - inflation returns from these bonds.

The municipality issue or sell the bond to investors, the investor or bond holder in exchange gives the municipality an agreed amount of money for a period of time; while the investor is paid a regular interest until the time the total amount is paid off.

Fixed income securities, such as bonds and preferred stock, subject investors to the greatest amount of purchasing power risk since their payments are set at the time of issue and remain unchanged regardless of the inflation rate.

With the equity portion likely to grow over time and the bond portion comparatively static, this means such investors become much more exposed to equities as they get older.

(Passive investors who wouldn't dream of timing the stock market seem happy to take a view on bonds.

Investors with a lower tolerance to risk or a shorter time span ahead of them should opt for a LifeStrategy fund with more bonds in the mix, such as the LS20 or LS40 funds.

We mention that an investor could buy and hold a bond index like AGG or BND rather than timing IEF.