«Athens» two
year bond yield maturing in April 2019 has hit its highest level in 8 months today, gaining more than 1.7 per cent since Monday, when the IMF voiced fresh concerns about the country's debt trajectory and growth prospects»
Not exact matches
The longest - term portion of the offering, $ 8 billion of
bonds maturing in 30
years, sold originally at 99.4 cents on the dollar to
yield 1.95 percentage point more than comparable Treasuries.
The electric car maker's
bond issued last
year and
maturing in 2025 sinks, sending the
yield above 7 percent.
The dollar
bond market has turned cold for Indian firms after a record 2017, with rising global interest rates, geopolitical concerns and market volatility prompting would - be financiers to demand either a higher
yield or invest only in short - term paper
maturing in two
years.
And during each of those prior
yield curve inversions my answer has been the same: Because in two
years your high -
yielding bond will
mature and you'll be renewing at much lower rates.
High -
yield bonds, those from companies with weak financial positions and poor credit, are offering rates as high as 9 % for 30 -
year terms but also offer the risk of bankruptcy before the
bond matures.
Around $ 20 billion in HNA's
bonds are set to
mature this
year and next, and their
yields have surged.
Other
bond markets, like the high
yield corporate and senior loan markets often have high concentrations of debt
maturing in specific
years in the near future — often referred to as a «maturity cliff».
So a
bond with a 5 %
yield, will pay a 5 % return each
year until the
bond matures.
If you've bought the Tesco
bond above for # 110, but you'll only get # 100 when it
matures, the redemption
yield would be 2.2 % (assuming the
bond matures exactly four
years from the purchase date).
If your
bond yields 2 % less than market but
matures in a
year, then it's worth $ 98, but if it
matures in 56
years, then it's only worth 0.98 ^ 56 = $ 32.
In your case, because your
bond matures in 56
years but
yields ~ 5 % (well above the current market rate), for it to be below Face value implies a strong probability of default, or a strong belief that market returns will be above 5 % over the next 56
years.
If the new investor buys the
bond for $ 900, while the coupon rate will still be 6 %, the
yield will be higher — both because he only has to invest $ 900 to get $ 60 a
year and because he'll get back $ 1,000 when the
bond matures.
For example, the Government of Canada has AAA - rated
bonds (4.25 % due 1/6/2018)
maturing in five
years with an annual
yield of 1.6 %.
During the final
year of the Fund's operations, as the
bonds held by the Fund
mature and the Fund's portfolio transitions to cash and cash equivalents, the Fund's
yield will generally tend to move toward the
yield of cash and cash equivalents and thus may be lower than the
yields of the
bonds previously held by the Fund and / or prevailing
yields for
bonds in the market.»
Unlike owning an individual
bond, the ladder has
maturing bonds each
year, which gives the portfolio a stream of cash flow to reinvest in new, cheaper higher -
yielding bonds.
For example, the investment grade non-callable municipal
bonds maturing in 2024 tracked in the S&P AMT - Free Municipal Series 2024 Index ended at a
yield of 1.87 % verses the
yield of the S&P / BGCantor Current 10
Year U.S. Treasury
Bond Index
yield of 2.03 %... or 92 % of the U.S. Treasury
yield.
It's kind of like buying a $ 100
bond maturing in a
year that pays 4 % when the current
yield is 2 %.
The S&P AMT - Free Municipal Series 2024 Index shows non-callable municipal
bonds maturing in 2024 have an average
yield of 2.16 % and have returned 3.5 %
year - to - date.
In contrast to these record lows, corporate
bonds representing high - quality companies and
maturing in seven to 10
years paid 3.14 %
yields on July 14, 2016.
Now, if you had instead bought the
bond at $ 100, and a
year later it
matured at $ 100, then you would have realized a
yield of 0 %.
If you buy the same
bond at $ 101, and it
matures a
year later at $ 100, then your
yield is -1 %.
The present environment is characterized by unusually overvalued, overbought, overbullish conditions, with rising 10 -
year Treasury
bond yields, heavy insider selling, valuations on «forward earnings» appearing reasonable only because profit margins are more than 70 % above historical norms (fully explained by the negative sum of government and personal savings as a share of GDP), with the S&P 500 at a 4 -
year market high, in a
mature market advance, with lagging employment indicators still positive but more than half of all OECD countries already in GDP contraction, Europe in recession, Britain on the cusp, and the EU imposing massive losses on depositors in order to protect lenders in an unstable banking system where Cyprus is the iceberg's tip.
George, I'm really glad to see that the Treasury has finally gotten a lick of sense, and is re-issuing the 30 -
year, which they should be able to at
yields lower then the current long
bond maturing in 2031 (probably 10 basis points lower).
Slightly longer
bonds in the nine
year range
maturing in 2023 have returned over 6.2 %
year to date with
yields of the
bonds tracked in the S&P AMT - Free Municipal
Bond 2023 Index dropping by 79bps.
The BB11 is calculated from the average
yield of 11 selected general obligation municipal
bonds maturing in 20
years.
Conservative investors will find
bonds maturing in seven
years, issued by AA - rated companies such as International Business Machines (IBM), Coca - Cola (KO), Colgate Palmolive (CL), and PepsiCo (PEP), that offer
yields to maturity well - north of 2 %.