Sentences with phrase «yield to maturity in»

Have a look at the dramatic differences between the coupon and the yield to maturity in the new RBC funds:

Suppose you source the bonds at $ 95, for a yield to maturity in about 6 1/2 years of 8.66 %.

Not exact matches

The backup in yields has opened up opportunities for fixed income investors to add exposure to shorter maturity U.S. Treasuries.

Yield Curve: Graph showing the comparative yields of securities in a particular class according to maturity.

«The extra reward you get in the form of higher yields from stretching on maturity will come back to haunt you should inflation trend upwards faster than expected,» said financial advisor Manisha Thakor, director of wealth strategies for women at The BAM Alliance.

So while there could be one or even five year periods where longer maturity bonds perform fairly well from these yield levels, over the long - term they're likely to be a poor investment in terms of earning a decent return over the rate of inflation.

The Fund currently holds primarily Treasury Inflation Protected Securities (which currently price in expectations of zero inflation for the next decade or more, while reflecting reasonably high inflation - adjusted yields to maturity).

Second, we like yield and with rates as low as they are, one way to get yield is to move further out in maturity to the ten - year mark.

The yield curve has flattened, meaning investors are getting less compensation for investing in longer - maturity bonds relative to shorter - maturity bonds.

Removal of stocks from the index due to maturity, redemption, call features or conversion may cause a decrease in the yield of the index and the Fund.

This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market.

Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.

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.

What this means in practice is that we have kept maturities of our investments very short, particularly for low - risk issuers such as governments and agencies, while we seek out opportunities to increase portfolio yield with what we think is well - priced corporate debt.

Fed rates most directly affect yields on shorter - maturity bonds, and I don't expect yields on longer maturity bonds to rise in the same way or to the same degree.

The index's yield - to - maturity tightened 115 bps YTD to 7.73 %, after reaching a 13 - month low at 7.40 % in mid-April 2016.

Though I'm not inclined to put much weight on projections or forecasts, the present shape of the yield curve is one that has historically been followed by a parallel upward shift in interest rates at all maturities.

The world's biggest wealth fund is for now sticking to an overweight position in the shorter bond maturities as the U.S. 10 - year Treasury yield has broken through the 3 percent threshold for the first time since 2014.

Because the Chinese yield curve is extremely flat, investors wouldn't even need to invest in longer maturities in order to obtain higher yields, meaning that they can remain comfortabe in shorter and less risky maturities.

Alternatively, of course, if spreads are going to widen, it is therefore more convenient to lock in the yield to maturity and stay short maturities.

This was called the «conundrum 2.0 ″ as it referred to an earlier period (2004) where Fed tightening was met with huge global demand for Treasury debt that led to smaller increases in longer maturity yields than expected.

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.

The BAA spread refers to the yield on corporate bonds above the rate on comparable maturity Treasury debt, and is a market - based estimate of the amount of fear in the bond market.

The new fund will use what are called constant maturity swap curve caps to bet on both a steepening of the US yield curve and an increase in curve volatility.

We favor a more even yield - curve exposure today (with positions across maturities) and a more defensive (higher - quality) credit profile — as volatility and heightened credit concerns could lead to significantly wider spreads in the high - yield - bond market.

Oh, and in case you're wondering, all these zero coupon yield to maturities were 0.5 % — 0.85 % lower right before the presidential election.

A new study in Nature Climate Change finds that warming and declines in soil moisture, but also vine management practices to lower yields to produce better - quality grapes, brought the fruit to early maturity.

Yield to maturity is the measurement most often used, but it is important to understand several other yield measurements that are used in certain situatYield to maturity is the measurement most often used, but it is important to understand several other yield measurements that are used in certain situatyield measurements that are used in certain situations.

At the same time, the continued lack of fixed income supply around the world, especially in longer - maturity debt, should continue to keep yields contained.

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».

Naturally, a policy buyer would prefer the insured to be elderly, in poor health, with a policy that has low cash value and a high death benefit, because all of these factors might increase the buyer's yield - to - maturity on the policy when you die.

What it means: This yield measure represents the weighted average YTM of the bonds in the fund as of a date, assuming that the bonds will be held to maturity and that all coupon payments and the final principal payment will be made on schedule.

The S&P Indonesia Bond Index increased 13.71 % in 2016, while its yield - to - maturity tightened 16 bps to 7.87 %, making Indonesia the best - performing country in Pan Asia for the year.

Because bonds with longer maturities have a greater level of risk due to changes in interest rates, they generally offer higher yields so they're more attractive to potential buyers.

The bond's coupon and term to maturity are used in determining the bond's market price and its yield to maturity.

Learn about exchange - traded funds that invest in U.S. Treasury inflation - protected securities of different durations and yields to maturity.

If both bonds are held for the full four years, their total return will be the same: in other words, both now have a yield to maturity of 3 %:

You'll need to know the NAV premium or discount in order to know the usefulness of the next piece of information: yield to maturity.

The index's yield - to - maturity tightened by 15 bps to 0.24 % in the same period.

Reinvestment risk is more likely when interest rates are declining and affects the yield to maturity of a bond, which is calculated on the premise that all future coupon payments will be reinvested at the interest rate in effect when the bond was first purchased.

Ultimately, and assuming you won't be cashing out early, what matters is the yield to maturity / surrender, or the annual effective return you're earning over the full locked - in period.

A bond with a «Put option» works in exactly the opposite manner, wherein the investor can sell the bond to the issuer at a specified price before its maturity if the interest rates go up after the issuance and the investor has other, higher - yielding investment options.

In order to determine the constant yield to maturity on a bond, it is necessary to determine a constant discount rate that must be applied to each and every payment on the bond (principal and interest) in order to produce an aggregate value (as of the issue date) that is equal to the issue price of the bonIn order to determine the constant yield to maturity on a bond, it is necessary to determine a constant discount rate that must be applied to each and every payment on the bond (principal and interest) in order to produce an aggregate value (as of the issue date) that is equal to the issue price of the bonin order to produce an aggregate value (as of the issue date) that is equal to the issue price of the bond.

In order to avoid this result, the Internal Revenue Code (the «Code») provides that the holder's basis will increase over time based on a «constant yield to maturity» (CYM) method.

As you can see, the barbell ETFs are almost identical in yield to maturity, similar or lower in average term to maturity, and significantly shorter in duration.

CLF pays out about 4.2 % in fully taxable interest, and since its yield to maturity is just 1.4 %, you can expect it to suffer significant capital loss every year.

In the case of CLF, the yield to maturity today is about 1.5 % — and that's before subtracting management fees.

Again, the yield to maturity of XCB is virtually the same as the comparable RBC fund: in this case, 3.25 % versus 3.21 %.

Bond prices would probably rise, which would increase the denominator in the yield to maturity formula, thereby reducing the yield.

The yield to maturity may change from year to year for any bond, depending on changes in the overall demand for bonds in the market.