Sentences with phrase «when held to maturity»

Some structured products offer protection of the principal — when held to maturity, subject to issuer credit risk, thus offering a lower risk than investing in the underlying asset directly.

These securities guarantee a rate of return when held to maturity, and they can provide a steady stream of monthly or quarterly income.

Domestic government bonds are backed by the full faith and credit of the U.S. Government and have superior liquidity and, when held to maturity, safety of principal.

Principal amount and interest rate guaranteed in real terms (adjusted for inflation) when held to maturity

As with most fixed - income securities, zero coupon bonds offer investors a high degree of safety when held to maturity and the opportunity to earn compound interest over the life of the bond.

Treasurys, for example, are backed by the full faith and credit of the federal government, and principal is guaranteed when held to maturity, while corporate and covered bonds have no such guarantee.

When you hold to maturity a long future contract position with physical settlement, you pay the final settlement price as calculated by the exchange for the underlying you receive and not your initial purchase price.

Not exact matches

When the market sours on you, you can hold them to maturity and get your money back, plus you get all the coupon payments along the way.

Active bond managers try to hold shorter maturities than their benchmark when rates are rising, and longer maturities when rates are falling.

I would be interested if you could compare your 60/40 mix to a 60/40 mix using 5 - year bonds that are laddered so that they can be held to maturity and used when needed as they mature, and therefore never need to be sold at a loss.

Yields can be measured in a number of ways, including coupon yield, or the stated interest rate of the bond, and yield to maturity, which is the total rate of return when an investor holds the bond to maturity.

This makes bonds a relatively heterogeneous asset class in which many securities are thinly traded.3 At the same time, institutional investors often hold assets to maturity and, when they do trade, do so in large amounts.

And now even more so — something very strange is going on when someone somewhere is buying with the intention of holding to maturity and paying a price to do so that locks in a loss of 2 - 3 % per annum in real terms.

By holding the security during a period when the yield - to - maturity is falling, you not only earn a return that is higher than the original yield to maturity, you earn a return that is dramatically higher than the future yield - to - maturity!

However, in the case of a Defined Maturity Fund, the SEC yield when you buy is a good estimate of the annualized return you can expect holding the fund to mMaturity Fund, the SEC yield when you buy is a good estimate of the annualized return you can expect holding the fund to maturitymaturity.

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.

Soon the investor learns that when purchasing bonds they are also not obligated to hold the bond or bonds until the maturity date.

The BulletShares products, by allowing investors to hold the ETF to maturity, can also prevent having to take out principal at a time when prices of conventional bond funds are sharply lower.

Overall, though, Welbeck led the line with maturity in his hold - up play and excitement when running in behind — at # 16m, he could prove to be a fantastic capture for Arsene Wenger if he is used through the centre.

When we see evidence of insight, maturity, ethical awareness, creativity and the ability to critically evaluate; when we see work that can hold its own in the «real» woWhen we see evidence of insight, maturity, ethical awareness, creativity and the ability to critically evaluate; when we see work that can hold its own in the «real» wowhen we see work that can hold its own in the «real» world.

When you buy an individual bond and hold it to maturity, the coupon payment you receive is constant during the life of the bond.

An advantage of a TIPS Ladder is that you hold all of your bonds to maturity, which avoids the expenses and the possibility of loss when selling on the secondary market.

Our investment advice: When it comes to choosing between stock or bonds and you're reluctant to hold a 100 % - stocks portfolio — and many people are — then one alternative to consider is to keep a portion of your investment funds in relatively short - term fixed - return investments, with maturity dates of a few months to no more than two to three years in the future.

A put option on gold will be exercised early when deep ITM, because gold tends to hold its value whereas the currency used as the strike is often expected to lose value through inflation if the holder waits until final maturity to exercise the option (they will almost certainly exercise a contract deep ITM, minimizing its time value).

Total return investors want to buy a bond when its price is low and sell it when the price has risen, rather than holding the bond to maturity.

When you invest in a bond and hold it to maturity, you will get interest payments, usually twice a year, and receive the face value of the bond at maturity.

Individual bonds expose you to significantly more individual entity risk and as I've shown here, a constant maturity bond fund is just as safe as an individual bond when it's held for the right holding period.

Right now the premium on AAA corporate and the like is so low that I wouldn't recommend picking them up, but when the yield curve eventually becomes a curve again, you can find good risk - adjusted returns in corporate bonds (providing you're holding to maturity).

I've held XSB and XBB before and I'm not a huge fan of them because they don't necessarily hold their bonds until maturity (especially the long term fund), so you face realized capital losses when then sell bonds to maintain their duration range.

If you plan to hold Treasuries to maturity, that's another matter (they're all worth $ 1,000 each or whatever par value is), but then you have to be careful that when you rebalance your portfolio, you're counting treasury on a par value basis and not by their market value.

Considering that there has been some inflation every year over the past 60 years, the principal of TIPS held to maturity is likely to be higher than when it was purchased.2

But, unlike a single bond where the buyer can hold to maturity, i.e. the duration drops about one tear for each year of real time passing, a fund of treasuries will never mature, the duration will remain somewhat constant as new treasuries are purchased when others mature or new money comes in.

When someone complains to me about the price of a mortgage bond, after analysis, I often say to find an entity that is willing to hold the bond to maturity, or slightly less, and they can garner full value.

But why pay anybody any MER at all to hold a government T - Bill or Bond when you can buy it yourself and be nearly guaranteed a positive return at maturity?

When this occurs, depending on the prices and maturity dates of the contracts held by the fund, the owners of the contracts can be forced to accept very high costs to roll over the expiring contracts to the next month, which can continuously erode the value of the fund over a long period of time.

Yields can be measured in a number of ways, including coupon yield, or the stated interest rate of the bond, and yield to maturity, which is the total rate of return when an investor holds the bond to maturity.

If you hold it to maturity, you'll collect a interest of $ 4 but you'll lose $ 2 when the bond matures.

This proved to be true, but it meant that those that held the securities to maturity had to endure a time when the offered prices for the securities were far less than par, though all paid their principal and interest to maturity.

If you currently hold bonds with 10 - 30 years to maturity, you'll see the largest capital losses when existing bonds are repriced to reflect rising rates.

It's only accurate to use these sheets when the investment vehicle only earns interest, and has no possibility for any profit or loss (so don't use it for any kind of bonds, including zero coupon bonds, unless you're assuming they'll be held until maturity).