Not exact matches
debt obligations of the U.S. government that are issued at
various intervals and with
various maturities; revenue from these
bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury
bonds, zero - coupon
bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions
However, with thousands of ETFs to choose from, more investors, including archerETF clients, are opting to build the bulk of their portfolio with ETFs: Canadian and foreign stocks and even
bonds of
various issuers and
maturities.
Both funds spread your investments out among corporate
bonds and U.S. government
bonds with
various maturities.
A well - diversified investment portfolio should hold a percentage of the total amount invested in highly - rated
bonds of
various maturities.
Exhibit 2 shows the yield spread of
various dividend indices versus the yield - to -
maturity of the S&P U.S. Treasury
Bond 7 - 10 Year Index since Dec. 17, 2015.
Bond Funds: A
Bond fund is a combination of
various bonds with different
maturities.
Much the same way you'd create a
bond ladder with
various maturities, when writing a portfolio of covered calls you may want to stagger your expiration dates across a few months, with a possible bias towards the near term (since time decay is better for the option writer on the shorter duration options).
The strategy seeks to generate total return by investing across the full
maturity spectrum of below investment grade corporate
bonds denominated in
various currencies.
By buying
bonds with
various maturities, you had
bonds maturing every few years to buy into rising rates.
This page provides links to
various analysis for all Target
Maturity Date Junk
Bond ETFs that are listed on U.S. exchanges and tracked by ETF Database.
Above is the graph of historical yields for
various maturities of Government of Canada
bonds.
As it implies, laddering refers to buying
various increasing
maturities of equivalent - value certificates of deposit (CDs) or investment grade corporate
bonds.
Essentially, loans were becoming more like
bonds: they were becoming debt instruments to be traded between
various investors, rather than loans which a single bank would hold to
maturity and beyond.
«It gives you a sense of where the U.S. government borrows for
various maturities, and the U.S 10 - year Treasury
bond is the benchmark.»