Sentences with phrase «to hold bonds»

You can fend off taxes by holding your bonds in a retirement account or buying municipal bonds.
The theory states there is more risk for holding a bond for 10 years than for 5 years, or for 5 years than for 90 days.
In other words, it is the internal rate of return of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled.
So, I would not just hold my bond fund without looking to see what lies beneath.
These rating agencies examine and assess the risk to investors of holding a bond issued by a corporation.
The total return you receive by holding a bond until it matures is measured by yield to maturity.
With interest rates being so low, investors holding bonds in a diversified portfolio know that the next forty years can not look as bright as the last forty years.
Who says the fund doesn't hold its bonds till maturity?
Corporate bond ETFs hold the bonds issued by companies to raise capital and finance their operations.
Things are more complicated if you only hold a bond for part of the term.
Someone who bought shorter duration bonds like 1 year or 5 years government bonds is not suffering capital losses when interest rates rise, just as long he can hold the bonds till maturity.
You can make a strong argument for holding bond ETFs in a registered account because they are so tax - inefficient.
The fund has higher duration than our benchmark, which holds bonds in the 10 - to 30 - year range.
Investors holding bond investments in taxable accounts often turn to municipal bonds because of their tax advantage.
If government bonds carried risks similar to stocks, then there would likely be more reasons to hold bonds as funds rather than individually.
When looking at the above chart, it's clear that investors that held bonds through the last two equity bear markets were especially fortunate.
For example, say an investor currently holds a bond whose par value is $ 100.
The corporate doesn't care who holds the bond, so you can happily sell it to someone else, probably for # 10 km give or take.
A carefully diversified portfolio holding some bonds and cash will provide the «smoother ride», if that's what investors are looking for.
Why hold bonds in your portfolio when they're yielding less than 2 %?
Try to hold these bonds within tax - protected accounts.
The fund typically holds bonds that have a maturity date of less than 10 years.
It's important to remember that bond funds buy and sell securities frequently, and rarely hold bonds to maturity.
If that happens, I outlined last week why you should be worried about holding bond funds instead of individual bonds.
Low yields, potential volatility: Why even hold bonds?
That's the third consecutive month that funds holding bonds attracted more cash than their stock counterparts — the longest streak since at least May 2011.
You especially want to hold bonds today if there is blood running in the street tomorrow.
I always hold each bond until maturity, so I don't care whether the bond's current market value rises or falls.
In the instance where the seller of the property currently has an outstanding bond, the bank holding the bond would instruct a bond cancellation attorney to attend to its termination.
That's because there is no interest: remember, you're not actually holding any bonds.
Very rarely do bond funds hold bonds all the way until maturity.
On the Today show this morning, a well known financial advisor said that people holding bond funds could be hurt very badly in the coming year.
This allows investors to eliminate interest rate risk at their investment horizon by simply holding a bond until maturity.
So why would anybody buy or hold bond right now?
The comparatively loosely held bonding electrons, along with the free electrons present in metals, can move in response to these electrical forces, however.
This hit me after holding the bond for over 15 years with only 5 years remaining until maturity.
It does still hold some bonds, though, for stability.
This is why most pension programs hold bonds or fixed income in their portfolios in order to «match - up» fixed liabilities associated with pension payments.
However, it is my understanding that bond - funds don't generally hold those bonds to maturity, but rather trade them like equities.
As I've written before, you should never hold a bond fund whose duration is longer than your time horizon.
That means you can sell it for nearly $ 10,000, since that's what the issuer will pay to whoever holds the bond.
Consider what would happen if investors become more willing to hold bonds due to economic uncertainty.
Selling through the firm holding your bond eliminates actually having to get your hands on the document, and permits you to sell at any time.
However, we still recommend that many of our clients hold some bonds.
Does that make all investors holding a bond allocation, and not planning withdrawals for over 5 years, irrational?
The only reason to hold bonds + mortgage is peace of mind.
The owner of the house holding the bond is illegal in some jurisdictions, and should trigger warning bells regardless.
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