Sentences with phrase «timing of bond purchases»

Actively managed bond funds have the people, data and tools for credit selection, can adjust for term structure and duration risk and have control over the timing of bond purchases and sales.

Not exact matches

«At that time, even a 1 % annual rate of inflation between 2012 and 2017 would have decreased the purchasing - power of the government bond» he sold.

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.

The European Central Bank (ECB) ready to reduce its monthly bond - purchasing program sometime in early 2018, and the Bank of England (BOE) isexpected to raise interest rates in November for the first time since 2007.

The low level of inflation gives the Federal Reserve ample time to decide how quickly to end its monthly purchases of $ 85 billion in government bonds and mortgage - back securities.

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).

They say the Fed's easy - money policies, including huge bond purchases and a seven - year period of record low rates, had diminishing effect over time and subjected the nation to side effects that could lead to serious problems in the future.

Each account will contain investment - grade taxable bonds rated BBB − or higher at time of purchase.2 The investment team will seek to maintain an overall portfolio credit rating average of A −.2 Please be aware that lower rated bonds do carry additional risk compared to higher rated bonds.

Once your Payroll Savings Plan is set up in TreasuryDirect the system will automatically purchase the type and dollar value of bond you want every time you have accumulated enough money in your Payroll C of I to make the purchase.

It was problematic because many of those bonds were purchased a time when interest rates were much higher and enjoyed far fatter bond coupons than anything then available on the market.

a municipal bond that is secured by an escrow fund; the escrow fund comes from the issuer floating a second bond issue and using the proceeds from that second bond issue to purchase government obligations, typically U.S. Treasuries, proceeds from the second bond issue create an escrow fund to mature at the first call date of the first bond issue to pre-refund that issue; bond issuers will typically do this during times of lower interest rates to lower their interest costs

Bond purchases topped $ 2 billion a week by July, and could reach four times that amount, predicts Fenton Burgin, head of UK debt advisory in the London offices of Deloitte.

Wall Street would like to see another round of quantitative easing, where the central bank purchases bonds, but that may be too aggressive a step at this time.

With the UK economy gradually picking up pace and inflation rising on the back of a weaker currency, the UK's central bank may finally go ahead with a rate hike for the first time in a decade, although it is widely expected to leave the monthly government and corporate - bond purchases untouched at # 435 and # 10 billion respectively.

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.

And yet there are critics and commentators who are impatient with him and want him to pin down the exact date, time and pace of a slowdown in bond purchases.

At the same time, ruling out any increase in interest rates while bond purchases are scaled back, in our view, signals ECB President Mario Draghi's determination to resist any political pressure to speed up the process of normalizing monetary policy.

But in the absence of any suggestion that the currency's appreciation would delay a tapering of bond purchases, the single currency's rally — which by the end of August had taken it above US$ 1.20 for the first time since the start of 2015 — resumed, following a brief pause in the run - up to the ECB meeting.

There is every reason in the world to not be physically active; reading to our children, providing quality meals, addressing their social needs, researching all medications / foods / education, shopping to have the «best» deals on the highest quality, spending quality play time with our children, limiting screen time, grooming them, keeping house, bonding, learning and executing proper child passenger safety (installing that perfect car seat that took 3 weeks of research and a small loan to purchase), and being sure every minute of their every day is filled with only the best developmentally appropriate activities.

Carol Stream Park District officials hope that the third time is the charm as they may ask voters once again to approve the sale of $ 8 million in bonds to raise money for land purchase and development.

At that time, four out of five American households purchased the original Victory Bonds, raising $ 185 billion (over $ 2 trillion in today's dollars) to support the war effort.

When a bond is purchased for its face amount the bond issuer agrees to pay the bond holder a fixed amount of interest for a specific period of time.

Though you may not risk losing any of your money, losing purchasing power to inflation can be a risk over time with conservative investments, such as high - quality investment - grade bonds.

Yields on zero coupon bonds are a function of the purchase price, the par value and the time remaining until maturity.

Because the amount of market discount, two points, is less than the de minimis amount (which in this case is 2.5 points, or 0.25 percent of the face value of a bond times the number of years between the bond's acquisition and its maturity), the market discount is considered to be zero and the difference between purchase price and sales price or redemption is generally treated as a capital gain upon disposition or redemption.

Capital Gain An increase in the value of an asset such as stocks, bonds, mutual funds and real estate between the time the asset was purchased and the time the asset was sold.

The constant interest rate method corresponds to the economic accrual of interest based on the yield on a market discount bond at the time it is purchased.

Under the de minimis rule, if a bond is purchased with a small amount of market discount — an amount less than 0.25 percent of the face value of a bond times the number of complete years between the bond's acquisition date and its maturity date — the market discount is considered to be zero.

Unlike those who have all their money in 10 year bonds and are either «locked in» with the interest rate the bonds had at their time of purchase, or forced to sell for a loss if they want a higher rate.

Rising prices over time reduce the purchasing power of each interest payment a bond makes.

In an additional example, assume an investor is looking at purchasing one of two corporate bonds, each with the same coupon payments and time to maturity.

For example, limitations on purchases may limit your I Bond total at the time of retirement.

The foundation of a sound retirement investing strategy is setting a diversified mix of stocks and bonds that's aggressive enough to generate returns that can grow your portfolio during your career and help maintain its purchasing power during retirement — yet conservative enough so you won't bail out of stocks every time the market heads south.

If you purchase one of these new XYZ bonds, you will receive $ 60 per year from XYZ on your $ 1,000 investment (6 % times $ 1,000).

a municipal bond that is secured by an escrow fund; the escrow fund comes from the issuer floating a second bond issue and using the proceeds from that second bond issue to purchase government obligations, typically U.S. Treasuries, proceeds from the second bond issue create an escrow fund to mature at the first call date of the first bond issue to pre-refund that issue; bond issuers will typically do this during times of lower interest rates to lower their interest costs

For the GTAA 5 % 01JUN15 bond, here are the comparable yields on a purchase — quotes taken within a couple of minutes so there may be some change due to price changes during the time I requested the various quotes but it should be pretty close.

But, unlike a single bond where the buyer can hold to maturity, i.e. the duration drops about one tear for each year of real time passing, a fund of treasuries will never mature, the duration will remain somewhat constant as new treasuries are purchased when others mature or new money comes in.

The benefit of staggering your long - term bond purchase is that even though all your bonds will mature during the same period, as you are purchasing the bonds at different periods, you will be able to get around the times when interest rates are high and bond values and low and buy bonds when there are no risks.

For certain individuals, it may be more prudent to purchase a term life insurance policy with lower premiums for a fixed amount of time and take the difference in savings between the two policies and invest in different types of stocks, bonds and mutual funds which may lead to higher returns and a more diversified portfolio.

Your portfolio will contain a significant portion of bonds that have an S&P credit rating of AA or higher at time of purchase.

ETF's and cheap bond funds are excellent opportunities for investors to invest in fixed income, gain diversification and take the time they need to study the more sophisticated elements of individual bond purchases and ownership.

Bond funds always trade at NAV, so you don't ever pay a premium at the time of your purchase and you also don't risk selling below NAV if you sell into a down market.

Over time, the portfolio will include bonds purchased in periods of both high and low interest rates.

The investment team will purchase investment - grade1 municipal bonds with a long - term credit rating of BBB − or higher at time of purchase and will ensure that the overall account maintains an average credit rating of A −.

At the time of purchase, the buyer must recognize whether the bond is subject to de minimis because the after - tax return could be substantially less than expected.

I'd imagine since we've had about a decade of QE the nominal price of the bond purchased in 1981 would rise significantly (since interest rates were at all - time highs in 1981)..

The nearer - term purchase is indeed a TR fund in a taxable account... I did that because of the transition of the allocation from heavier in stock funds to more in bond funds as the time to withdraw the money approaches.

Between the slow drawn - out economic recovery and heightened expectations surrounding the timing of the Fed's tapering of its asset purchases, bond market yields have risen significantly.

5) You ascertain that you want to live in Southeast Asia most time, and that you need US$ 10,000 / y. 6) To derive the $ 10k / y, you could, for example, a) own a property costing $ 150k and rent it b) keep a stock and bond mutual fund of $ 250K and withdraw 4 % pa from it c) purchase an annuity with a single consideration of $ 180K, for which the insurance company promises to pay you a guaranteed $ 10k / year for as long as you live, plus a variable bonus

The composite rate of an I bond is based on two separate rates: the fixed rate, which is set at the time of purchase and remains constant for the life of the bond, and the inflation - linked rate, which changes every 6 months based on the change in the CPI - U measurement.