Sentences with phrase «value of your bond falls»

Bond values are tied closely to the level of interest rates: As interest rates rise, the values of bonds fall; as interest rates fall, the values of bonds rise.

When interest rates rise, the value of a bond falls.

If interest rates rise, and the market value of your bond falls, you will not feel any effect unless you change your strategy and try to sell the bond.

Usually on a fixed - coupon bond (e.g. Government bond) the interest rate is fixed for a given period (say 10 years), and if market rates rise the face value of the bond falls, to compensate for the lower return a new buyer would get, compared to the market interest rate.

If the value of bonds fall or rise, they rebalance it by selling our buying some of the equities within the fund.

Not exact matches

Their declining currencies against the dollar (8 - 9 percent over the past 12 months), falling stock market values since the beginning of the year and high (India) and rising (Brazil) bond yields are reflecting their funding difficulties.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

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.

And so the roughly 20 % drop in Deutsche's 7.5 % perpetual CoCo that has happened in just a few weeks is a manifestation of a fear not only that a missed payment will come to pass, but that Deutsche Bank could also write down the value of these bonds if its capital falls below a certain level.

If you own the bond fund that fell in value, you can sell it right after the fall and still buy the portfolio of individual bonds some say you should have owned to begin with (which, again, also fell in value!).

So, again, I think it's a good opportunity to do an apples - to - apples comparison of what does it look like, where are you at in the tax bracket, where do you fall in the new marginal tax bracket, and then do an apples - to - apples comparison to see do municipal bonds provide a greater after - tax value for you or does being in a taxable bond portfolio provide that greater value?

But once everything was in place, the markets tried to lure him out of his process as interest rates fell and the value of his bonds went up.

«The importance of the wealth - saving relation goes beyond the case usually designated by the Pigou effect, viz., beyond the effect of an increase in the real value of cash balances and government bonds due to falling prices.

Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer, industry, or sector and, in the case of bonds, perceptions about the risk of default and expectations about changes in monetary policy or interest rates.

Generally, the higher the duration, the more the price of the bond (or the value of the portfolio) will fall as rates rise because of the inverse relationship between bond yield and price.

But I hope it's clear that if yields do rise sharply, a fall in the value of your government bond fund could be your least concern.

Even without any selling, the value of the fund's share price would fall (roughly as a function of the fund's average «duration», a measure of interest rate sensitivity that is a related to a bond's maturity).

@Mark generally when equity falls, dividends fall less, and of course bond value falls do not affect their income.

The narrative of higher rates being a headwind for gold seems to be falling apart, as the 10 year yield in the US seems to be on an upswing, and gold is rallying at the same time that bond values fall.

When yields rise, the value of bonds (and bond fund shares) fall.

Berkshire invests in Australian government bonds and the US - dollar value of the securities fell during the quarter.

Bond values fall in a rising interest rate environment because investors sell bonds in favor of higher interest yielding bonds.

In the report, The Public Cost of Private Bail: A Proposal to Ban Commercial Bail Bonds in NYC, Stringer said that although crime, arrests and jail admissions have fallen in the last two years, the use of commercial bail bonds grew by 12 percent and the total value of bond postings increased by 18 percent over that peBonds in NYC, Stringer said that although crime, arrests and jail admissions have fallen in the last two years, the use of commercial bail bonds grew by 12 percent and the total value of bond postings increased by 18 percent over that pebonds grew by 12 percent and the total value of bond postings increased by 18 percent over that period.

It's not necessarily that it's going to fall 5 %, because interest rates are dynamic, they change, they move, values of bonds move.

After lamenting the low yields of US Treasuries, and the likelihood that they will fall in value in the near future, Frick recommends a Fidelity fund that invests in emerging market bonds.

At 3 % inflation, the inflation adjusted principal of a bond or preferred stock falls to 74 % of its original value after 10 years.

So, if you purchase a bond and then interest rates fall, the value of your bond will go up.

If interest rates rise, the values of bonds held by the fund would fall, negatively affecting total return.

When I was a bond manager for an insurance company that had long - dated promises to pay, I bought a variety of fixed - rate bonds that that appreciated dramatically in value in a falling interest rate environment.

That is why SIPC does not bail out investors when the value of their stocks, bonds and other investment falls for any reason.

Falling almost 12 % in yield since the peak, that multiplies the value of the bond more than 16 times, far more than the equity market over a similar period, including dividends.

And Gordon knows if interest rates rise, the value of her two bond ETFs (currently $ 260,000) will fall.

As interest rates fell, the value of their bond holdings rose.

The duration of VFITX (the treasury bond fund) is 5.2 years, which means that if interest rates rise 1 %, the value of the bond fund will fall about 5 %.

Ultrashort - term bond funds, meanwhile, lost 9 % of their value during the financial crisis, while bank loan funds fell by more than 30 %.

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

If the value of the bonds in their trading portfolio falls, the value of the portfolio also falls.

This duration figure means that if interest rates were to rise one percent this year, the value of the bonds in this fund would fall approximately 2.7 %.

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

When rates increase, the value of pre-existing bonds falls.

Since falling rates create increasing prices, the value of a bond initially will rise as the lower rates of the shorter maturity become its new market rate.

Event risk The risk that a bond's issuer undertakes a leveraged buyout, debt restructuring, merger or recapitalization that increases its debt load, causing its bonds» values to fall, or interferes with its ability to make timely payments of interest and principal.

Once the maturity date is reached, irrespective of the rise or fall in the current bond value, you will be paid your complete principal amount.

Interest rates and bond values have an inverse relationship; rising interest rates will reduce the value of existing bonds while falling rates will increase their value.

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.

Because interest rates and bond prices move in opposite directions; if interest rates rise, the value of a fixed income security falls.

So the price, or value, of that bond in the secondary market must fall to entice anyone to buy it.

Over that year, Standard & Poor's 500 - stock index, a broad measure of the market, soared 32 %, and bond values (as represented by the Barclays Aggregate Bond index) fell bond values (as represented by the Barclays Aggregate Bond index) fell Bond index) fell 2 %.

Also consider that if your call on the economies here are negative, then interest rates will fall increasing the value of your bonds.

January 2008 by AAII Staff No matter the cause of interest rate movements, the impact on the bond investor is the same: Rising interest rates reduce existing bond values and falling interest rates increase existing bond values.