Sentences with phrase «value of the bonds backing»

Less trading volume results in larger bid / ask spreads, and thus bond funds trade at premiums and discounts to the actual value of the bonds backing up the fund.

At a pre-specified date, you will get the face («par») value of the bond back, typically $ 1,000 per bond.

Bonds pay regular interest, and the investors get the principal or par value of the bond back on maturity.

Not exact matches

Back in 2010 it paid $ 550 million to settle charges brought by the Securities and Exchange Commission that it mislead investors into buying a so - called synthetic collateralized debt obligation named Abacus, which was made up of a bundle of financial instruments tied to subprime mortgage bonds, many of which plummeted in value shortly after the deal was sold.

It was a rough first quarter for bonds, which fell in value amid fears that inflation, the archnemesis of fixed - income investors, was coming back into the picture.

The Barclays U.S. Aggregate Bond Index is a market value — weighted index of investment - grade fixed - rate debt issues, including government, corporate, asset - backed, and mortgage - backed securities, with maturities of one year or more.

Callable and puttable The issuer of a callable corporate bond maintains the right to redeem the security on a set date prior to maturity and pay back the bond's owner either par (full) value or a percentage of par value.

McDonald's issues $ 50 million in bonds with a maturity of 30 years The bonds have a face value (cost) of $ 1,000 and an interest rate of 3.5 % McDonald's pays investors 1.75 % in interest, twice a year for 30 years At the end of 30 years, McDonald's pays the $ 50 million back to investors at $ 1,000 for each bond they hold

If you buy the bond when issued and choose to hold until maturity you'll get back the face value of the bond plus the interest incurred over a ten year period.

And you know bonds have risen in value and real estates gone back up to bubble levels but there hasn't been a lot of real world inflation and certainly no wage inflation.

Are most of these off - balance sheets assets mortgage backed securities and other hard - to - value bonds?

If you hold the bond until it is called or matures then you will get the face value back to avoid lost of principle except for the premium paid.

The staff response to that (the evaluations that we got back) were around they've never felt so respected and valued that we had provided that for them, how uplifting they found it and being able to be in an environment where they could laugh with their peers and that kind of bonding you have with laughter.»

By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year.

You simply redeem your maturing bond and get back par, or the face value, of the bond.

Backing away Balance of payments Balance of trade Balance sheet BAN Bankers» acceptances Basis Basis book Basis points Bearer Bear market Bear Spreads Best - efforts underwriting Beta Bid price Blanket fidelity bond Block trade Blue Chip Stocks Blue List Blue List Total Blue Skying Blue Sky Laws Board Broker Bond Bond Anticipation Note Bond Buyer Bond Index Bond Swap Book entry Book value BP option Branch office Breadth of the Market Breakeven Point Breakpoint Breakpoint sale Broker Broker / Dealer Broker's broker Bull market Bull spread Bunching Business cycle Buyer's option Buying power Buy bond Block trade Blue Chip Stocks Blue List Blue List Total Blue Skying Blue Sky Laws Board Broker Bond Bond Anticipation Note Bond Buyer Bond Index Bond Swap Book entry Book value BP option Branch office Breadth of the Market Breakeven Point Breakpoint Breakpoint sale Broker Broker / Dealer Broker's broker Bull market Bull spread Bunching Business cycle Buyer's option Buying power Buy Bond Bond Anticipation Note Bond Buyer Bond Index Bond Swap Book entry Book value BP option Branch office Breadth of the Market Breakeven Point Breakpoint Breakpoint sale Broker Broker / Dealer Broker's broker Bull market Bull spread Bunching Business cycle Buyer's option Buying power Buy Bond Anticipation Note Bond Buyer Bond Index Bond Swap Book entry Book value BP option Branch office Breadth of the Market Breakeven Point Breakpoint Breakpoint sale Broker Broker / Dealer Broker's broker Bull market Bull spread Bunching Business cycle Buyer's option Buying power Buy Bond Buyer Bond Index Bond Swap Book entry Book value BP option Branch office Breadth of the Market Breakeven Point Breakpoint Breakpoint sale Broker Broker / Dealer Broker's broker Bull market Bull spread Bunching Business cycle Buyer's option Buying power Buy Bond Index Bond Swap Book entry Book value BP option Branch office Breadth of the Market Breakeven Point Breakpoint Breakpoint sale Broker Broker / Dealer Broker's broker Bull market Bull spread Bunching Business cycle Buyer's option Buying power Buy Bond Swap Book entry Book value BP option Branch office Breadth of the Market Breakeven Point Breakpoint Breakpoint sale Broker Broker / Dealer Broker's broker Bull market Bull spread Bunching Business cycle Buyer's option Buying power Buy stop

To expand on @DilipSarwate's comment regarding your first bullet point, if the original face value for the bond is $ 1000, it has a maturity of five years and a coupon rate of 10 %, then each of those five years you will receive $ 100 (10 % of $ 1000) and at the end of the five years you will receive $ 1000 back, for a total outlay of $ 1000 and a total income of $ 1500, netting you $ 500.

To rebalance, you would take 6 % of your 401 (k) plan's total value out of the bond funds and shift it into your stock funds, bringing the allocation back to 50 % stocks and 50 % bonds.

The reason the balance sheet is still valuable is, as you said, it potentially provides a margin of safety so that if you missed the coupon calculation, you can still get back the «par value» of the bond.

A death put is an optional redemption feature on a debt instrument allowing the beneficiary of the estate of a deceased bondholder to put (sell) the bond back to the issuer at face value in the event of the bondholder's death or legal incapacitation.

On the maturity date, the holder of the bond gets back its full face value (called par value).

a feature of certain debt instruments that allow for the estate of a deceased investor to «put back» or redeem that instrument without penalty; bonds that carry a survivor's option usually redeem for par value when the survivor's option is exercised; in either case the benefit of the survivor's option can not be realized unless the original investor in the asset has died; because investor mortality risk must be taken into account when underwriting assets that carry a survivor's option, these assets are more complex and expensive to issue; also known as a «death put»

At the time of maturity or repayment of the Bond the par value of Rs 1000 is paid back.

Barclay's U.S. Aggregate Bond Index is made up of the Barclay's U.S. Government / Corporate Bond Index, Mortgage - Backed Securities Index, and Asset - Backed Securities Index, including securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $ 100 million.

Bonds are backed by the governments which issue them, so the chances of them losing value are extremely rare.

One important point to note as repetitively mentioned in this article is that when you choose to sell your existing bonds before the maturity date, there is no guarantee that you will get back the entire principal amount that you spent while purchasing the bonds and this is entirely dependent on the current value of the bond and the interest rate.

From another perspective, the issuer is incentivized to buy bonds back at par value, because as interest rates go down, the price of the bonds goes up.

The Maturity Date of a bond is the date on which the bond validity expires and the company or government that issued you the bond should pay you back the entire Face Value or Par Value at the end of the Maturity Date.

In this case, you would sell enough bonds to bring them back down to 20 % of your portfolio's value and funnel the proceeds into stocks, pushing equities back to their 80 % share.

Bondholders can, of course, get back the face value of their bonds by holding on to them until they mature.

In the case of bonds, as you are just lending money to the company or government, you are actually not becoming a part of it and hence the investment you made in terms of bond is not affected by the rise or fall in the company's value and at the end of the maturity date, you will receive back the amount you invested while purchasing the bond.

Like with a bond, the intrinsic value of a company is simply its future cash flows (or equity coupons) discounted back to the present.

Bear Stearns averted a meltdown this time, but if delinquencies and defaults on subprime loans surge, Wall Street firms, hedge funds and pension funds could be left holding billions of dollars in bonds and securities backed by loans that are quickly losing their value.

In the next few blogs, we will detail our approach to and back - tested results of employing credit spread (value) and volatility as factors in order to systematically construct a portfolio of U.S. investment - grade corporate bonds.

When a life insurer lends out its bonds, they receive back safe liquid collateral equal to 100 - 102 % of the par value of what they lent out.

Do that, and you'll gain exposure to virtually every type of publicly traded stock in the world (large and small, growth and value, domestic and foreign, all industries and sectors) as well as the entire U.S. investment - grade taxable bond market (short - to long - term maturities, corporates, Treasuries and mortgage - backed issues).

On the redemption date, bonds are usually redeemed at «par», meaning the company pays back exactly the face value of the bond.

To rebalance the portfolio back to its 60/40 target asset mix, you would need to sell $ 12,000 of bonds and purchase $ 12,000 of equities ($ 70,000 new portfolio value × 60 % target equity asset mix = $ 42,000 minus $ 30,000 of existing equities = $ 12,000 of additional equities required).

If you hold a premium bond to maturity, your return will consist of two parts: 1) the interest coupons you collect and 2) the capital loss that occurs as the price of the bond gradually falls back to par value at maturity.

And they are called junk bonds because they are often so speculative that the risk of missing an interest payment or even paying back principal value is substantial.

On the maturity date, you get back the face value of the bond.

You can expect to get back the face value of the bonds plus any interest that has accrued since the last time interest was paid to you.

So ILBs that you are stuck with from low rates times will be worth much less than newer bonds at the higher rates, even if you get some of the value back from higher principal amounts.

DeBiase was most recently a trader in the Fixed Income division and was responsible for trading, relative value assessment, and analysis of mortgage - backed securities and corporate bonds.

As we enter the back area where a few ferrets reside — an iguana, some rabbits, an assortment of birds and other small creatures her movements reflect the value of the human - animal bond.

Investors in these securities, bonds backed by shopping malls and office buildings, are concerned by what they see as a lack of diversity in the bonds as well as the increase in loan - to - value ratios.