Sentences with phrase «underlying value of the bond»

The underlying value of the bond is the notional value of the derivative.

These risks include interest rate risk, which may cause the underlying value of the bond to fluctuate.

Sure, the underlying value of the bond fund might decline in value when the stock market is tanking, but that is fine, since I'm just using the income they generate to DCA across other investments.

Not exact matches

In today's convertible bond market, the key driver of returns relates to the value of the underlying equity.

Its underlying index selects and weights its bonds by market value, and this method yields a portfolio that aligns well with our benchmark in terms of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.

The issue is very simple: U.S. wealth is overstated because the prices of stocks, bonds (particularly corporate), even real estate, are excessive in relation to the replacement value of the underlying assets, and the income streams that are derived from them.

A bond fund with a longer average maturity will see its net asset value (NAV) react more dramatically to changes in interest rates as the prices of the underlying bonds in the portfolio increase or decline.

An ETF holds assets such as stocks, supplies, or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.

Have we been wrong about the underlying fundamental value of U.S. long bonds?

We define intrinsic value as the amount that would accrue to the owners of a security if the underlying company were sold to a rational and well - informed buyer, or the company was liquidated with the proceeds distributed to security holders, or where the particular security sells at a price that would yield no better than a security considered ultra-safe, such as a US Treasury note or bond» Lou Simpson

Arbitrage might take advantage of imbalances in prices between two markets for the same security (such as a domestic and a foreign market) or between two types of securities whose value depends on the same underlying security (such a stock and a bond convertible into the stock).

Although short - term bond funds can lose value if interest rates rise, they're less risky than long - term bond funds because of the short duration of their underlying bonds.

The RAFI website states that «traditional bond indices weight issuers solely by the market value of each firm's outstanding debt with no regard to underlying firm fundamentals.»

As interest rates rise, the value of the underlying bonds fall.

Eventually the yields will move up and the value of the underlying bonds will fall.

But while an ETF's NAV is the best estimate of that fund's underlying value, it's still just an estimate — especially for bonds.

To illustrate the comparison of a convertible bond's price to its common stock price, we look at conversion parity, which is the value you would receive if converted to stocks today; the conversion premium, which is the amount the bond is trading above the conversion parity, or how much you would pay for the option to convert to stocks in the future; and delta, which measures the sensitivity of the convertible bond's price to changes in the underlying stock price.

An ETF's market price can actually be a better approximation of the aggregate value of the underlying bonds than its own NAV, and highly liquid bond ETFs can perform price discovery for the bonds they hold.

A bond mutual fund's share price is always exactly its net asset value, or the value of the underlying securities in its portfolio.

The value of the investment bond will rise or fall with the performance of the underlying investments.

But the principle is still the same: when interest rates rise, the value of all these underlying bonds will fall in value, so the price of your fund will decline to reflect that.

Of course, in the short - term the bond ETF's price will be volatile because its underlying holdings will fall in value in the short - term while it waits to accrue its interest income.

The second principal feature of a stable value fund is a «wrap contract» issued by an insurance company or other financial institution that provides a guaranty that investors will receive the «book value» of their account, the value of their initial investments plus interest accrued at certain intervals of time that reflects the performance of the underlying bond fund.

Besides, credit vol is probably exploding so even though the value of the underlying asset (the corp bond) has gone up in value, any put option will also go up in value.

Binary options are a type of financial instrument that allows individuals to bet on whether the value of an underlying asset, such as a stock, bond...

Binary options are a type of financial instrument that allows individuals to bet on whether the value of an underlying asset, such as a stock, bond or even bitcoin, will be higher or lower after a specific pre-determined time period.