Sentences with phrase «when bond prices»

This will make a bigger difference during periods of falling interest rates when bond prices will rise in the secondary market.

In a similar fashion, when the bond prices go down, the bond yield goes up and the fixed mortgage rate also increases.

When bond prices rise, mortgage rates sink.

when bond prices get massacred for years and stocks go nowhere?..

Given the level of bond prices on Friday, rate sheets might have been a little bit worse than the circumstances warranted, which left mortgage firms with some leeway when bond prices started dropping on Monday.

For example, stock prices often — but not always — rise when bond prices fall, and vice versa.

When bond prices decline, the interest rate increases because the bond costs less, but the interest rate remains the same as its initial offering.

When bond prices rise, yields in general fall, and vice versa.

If you sell a bond before its maturity date, you may get more than its face value; you could also receive less if you must sell when bond prices are down.

Some pundits were even recommending inverse bond funds, which go up when bond prices go down.

When bond prices go up, interest rates go down, and vice-versa.

Conversely, when bond prices drop, FHA loan rates rise.

When bond prices rise, mortgage rates drop.

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.

The relationship between these three is as follows: When the bond price increases, the bond yields decreases and the fixed mortgage rate also decreases.

Not exact matches

When bond yields rise, the market price to purchase or sell those bonds falls.

When bond rates rise, which they have this year, these stocks tend to fall in price as fixed - income products, which are safer to begin with, become more attractive.

That's left a lot of junk bond fund managers with plenty of exposure to the energy sector at a time when oil prices have crashed and defaults, particularly among fracking companies, are rising.

But the simple fact is she just doesn't know, because she doesn't know when the effect of a higher coupon has a more powerful effect on a bond's price than does a shorter term.

Historically speaking, when the economy has gotten stronger, the price of Treasury bonds go lower and the yield goes higher.

(When rates rise, bond prices fall.

The «arbitrage» community also plays a role in these loops, especially when quoted bond «prices» don't reflect the reality of where the bonds would trade.

If Brexit - like sentiment in other nations leads to restrictions on the flow of trade and labor, he adds, «that is going to create greater uncertainty and volatility» — at a time when some commentators believe that global stock and bond prices are overdue for a tumble.

As a result, bonds, which rise in price when yields drop, had a very good year in 2014.

On Monday, investors rushed into Treasuries as the S&P 500 and Dow Jones Industrial Average nosedived more than 4 percent - reversing a move on Friday when a spike in bond yields, which move inversely to prices, triggered an equity rout.

When rates rise, the price of older, lower - yielding bonds fall.

That will change when interest rates rise and bond prices fall.

Bond prices falling along with a falling dollar reflect an exit by foreign investors from US bonds that were attractive when risk off from non US markets was the theme and the dollar was strong.

Market discount arises when a bond is purchased on the secondary market for a price that is less than its stated redemption price.

And since the dealer buys when people are selling, and sells when they're buying, he has a tendency to reduce volatility: If you really need to sell, and there are no dealers, you're going to slash your price to get rid of your bonds.

Tell me if you have heard this one before: When interest rates go up, bond prices go down.

When rates rise, this is a huge plus for bond funds because they can continuously reinvest at higher rates, which offsets some of the sting you get from the price decline.

For example, they could seek to buy resilient bonds that pay decent coupons with limited price downside while simultaneously shorting fixed - income securities that look vulnerable when interest rates and inflation expectations trend higher.

And when the Fed eventually does allow rates to rise to more normal levels — even if that really isn't until 2014 — bond prices will fall significantly.

Bond yields drop when prices rise.

Bond prices rise when interest rates fall, and vice versa; the effect is usually more pronounced for longer - term securities.

Yields have an inverse relationship to bond prices and fall when investors flock to a so - called safe haven asset.

The longer the «duration», the more the bond price will fall when interest rates rise.

But if you're holding Bond ETFs such as iShares XBB (mid-term maturities) or XSB (short - term maturities), then the prices of these ETFs will fall when rates go up.

This is especially true at a time when some investors have lost faith in this principle following several notable episodes in recent years when stock and bond prices moved together.

Bond prices have tended to go up when stock prices have gone down and vice versa, displaying a negative correlation on average.

Fixed Income — When investing in bonds and interest rate - sensitive securities, it is important to note that as interest rates rise, bond prices will fall.

The share price of Capital World Bond Fund, American Funds Strategic Bond Fund and American Funds Inflation Linked Bond Fund also decrease when a dividend is paid.

When the price is too low, the protocol auctions Base Bonds at a discounted price in an attempt to reduce the supply of Basecoins.

Income earned on bonds is so low that it's difficult to offset the price declines when rates rise (remember interest rates and bond prices are inversely related, so as one rises the other falls).

In contrast, when the price is too high, the protocol increases supply by issuing new Basecoins to pay back the holders of Base Bonds.

«Market discount» arises when a bond is purchased on the secondary market for a price that is less than its stated redemption price by more than a statutory amount.

Bond prices are inversely proportional to interest rates, which means prices fall when interest rates rise.

And typically when interest rates rise, prices of bonds and bond funds fall.

For US Treasury securities, the estimated price impact rose sharply when markets were stressed in late 2008, underscoring how costly it was to execute trades even in one of the most liquid bond markets (Graph 1, right - hand panel).