Sentences with phrase «yield bond funds when»

We moved into strategic, floating - rate and high - yield bond funds when these funds came into in favor.

Not exact matches

So, when an economist or bond fund manager makes an accurate forecast about Treasury yields, his or her clients are probably doing very well.

A survey last year by Mercer, a retirement and investment group, revealed that European pension funds would be inclined to raise their bond holdings when average long - term sovereign bond yields reached 2.8 percent.

When an individual without financial sophistication is faced with a choice between equity and fixed - income funds, international or domestic, large - cap or small - cap, high - yield or treasury bonds, they face choice - overload and the decision can be overwhelming.

MS: (Editor note: After explaining this to me twice, he provided the following example) Let's say that you are the lone shareholder in a fund and, when you invest, the fund in turn buys a single bond at a 2 % yield.

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

When bond yields change in the market, the YTM on a fund also changes, and future bonds acquired by a fund will then be acquired at current YTM rates.

The size of the distribution reflects the yield level that bonds were at when they entered into the fund.

The sponsor of the fund may have purchased bonds subject to the AMT to increase the yield on the fund, especially in past years when overall interest rate levels have been low.

Prices of bonds in mutual - fund portfolios drop when rates rise, because their yields are less attractive than those of newly issued bonds.

Short Term Bond Funds — When bond yields and interest rates rise mid to long term bond fund values tend to initially drop considerably because the bonds these funds are holding have lower yieBond Funds — When bond yields and interest rates rise mid to long term bond fund values tend to initially drop considerably because the bonds these funds are holding have lower yiFunds — When bond yields and interest rates rise mid to long term bond fund values tend to initially drop considerably because the bonds these funds are holding have lower yiebond yields and interest rates rise mid to long term bond fund values tend to initially drop considerably because the bonds these funds are holding have lower yiebond fund values tend to initially drop considerably because the bonds these funds are holding have lower yifunds are holding have lower yields.

They only look at yield when they are deciding which bonds or bond funds to own.

When bonds yielded 10 %, perhaps it made some sense to buy bond funds and pay a yearly MER of, say, 2 %.

When bond yields go down, long duration debt / gilt funds give returns in double digits.

So, one should invest in long term debt / gilt funds when the bond yields are high and the situation looks scary.

What I need is advice on how to make ends meet when most bonds, bank accounts and money market funds only yield a fraction of a percent.

When choosing a municipal bond or bond fund, first use the taxable equivalent yield chart to get an apples to apples comparison against taxable bond yields.

Because managers Dan Fuss and Kathleen Gaffney typically own a large helping of high - yield, or junk, bonds (those rated double - B or lower), as well as bonds from developing nations, the fund took a hit when investors bailed out of anything smacking of risk during the financial crisis and rushed into Treasuries.

A further unpleasant reality adds to the industry's dim prospects: Insurance earnings are now benefitting [sic] from «legacy» bond portfolios that deliver much higher yields than will be available when funds are reinvested during the next few years — and perhaps for many years beyond that.

When investors expect longer - maturity bond yields to become even higher in the future, many would temporarily park their funds in shorter - term securities in hopes of purchasing longer - term bonds later for higher yields.

Gundlach: The biggest mistake I made was not buying high - yield bonds in my total - return fund in October of 2002, when I put maximum weighting in every other strategy I ran.

The default risk of high - yield bonds is still relatively small when compared with the risk of investing in equities, so for many investors, high - yield bonds and bond funds occupy a strategic space between stocks and less risky bonds.

When the Fed buys Treasuries neither the banks or most mutual fund managers are able to sell their now expensive tbills for higher yielding cash or other credit bonds.

iShares iBoxx High Yield (HYG)-- «A lot of the time, especially when you get into something like high yield bonds, you're better off sticking to mutual funds,» Jason Yield (HYG)-- «A lot of the time, especially when you get into something like high yield bonds, you're better off sticking to mutual funds,» Jason yield bonds, you're better off sticking to mutual funds,» Jason said.

This was when stock markets were averaging 15 % annually, 3 % GDP growth was considered a bad year, government bonds yielded between 5 % and 10 %, the highest marginal tax rate on ordinary income was ~ 70 %, just about the only way to invest was to pay a full - service stockbroker over 5 % commission to buy a stock or a mutual fund, and inflation was averaging 4 % to 8 % annually.

So when it's «safe to buy again,» a flood of new money comes in (to get the higher yields), which enables the fund to buy even more new bonds at the currently higher interest rates.

• When the bond fund's yields start to go back up to par with market rates (because new higher - yielding bonds are always being purchased), then this attracts money that was sitting on the sidelines waiting before, because they were afraid of interest rates going up.

They are funding a lot of «boxes» at 3.5 % when the US long bond they can purchase with your premium is currently yielding 2.58 % As a result the companies are forced to take on more risk in investments and pay the minimum into your «box».