Sentences with phrase «yielding bonds always»

Risk and reward is always related, so higher yielding bonds always carry more risk of default.

Not exact matches

The real risk for bonds, especially at these low yield levels, will almost always come from inflation.

While bond credit ratings and relative yield can compensate an investor for the relative risk of companies to make good on their debts, the recent past has shown this is not always the case.

I'd recommend at least a small allocation to bonds or cash in the event that an unexpected expense comes up that over and above the dividend yield (although you could always create your own dividend by selling shares too).

However, even in this situation bonds almost always provide a positive return (if held for their duration) because bond yields and inflation rise together.

And so, there is this big dichotomy I think between what the Fed governors are forecasting in terms of their so - called «dot plot,» where they think interest rates are going to be and where the market is again, saying well, actually we know better, bond yields are always going to stay low.

Investors» willingness to believe that eurozone bond yields are a a single - way bet has been located out in the way that new paradigm pondering about markets always is, eventually.

The problem I've always had with the stocks vs bond yield argument is that if rates rise, the whole thing doesn't make sense.

And just as long - term bond prices decline as interest rates rise (because new investors demand the yield on old bonds matches those of newly issued, higher yielding ones), the same can be true (though not always) for triple net lease REITs such as STORE Capital.

Another thing to keep in mind about convertible bonds is that their yields are always lower than their non-convertible equivalents.

Posted fixed mortgage rates have always been above government bond yields so paying off your house will offer a higher return over the long - term.

Always interesting, Gross mentioned that in order to generate a level of return equal to the 7.5 % return bonds have delivered over the past 40 years, yields would need to drop to negative 17 %.

Having been a bond manager, I learned that the easiest error to fall into is to always add yield.

Are preferred yields always so much higher than general bond rates?

And just as long - term bond prices decline as interest rates rise (because new investors demand the yield on old bonds matches those of newly issued, higher yielding ones), the same can be true (though not always) for triple net lease REITs such as STORE Capital.

Because bonds tend to be higher yielding than your cash, you would always assign your fixed income assets to the right hand side of this line.

However, even in this situation bonds almost always provide a positive return (if held for their duration) because bond yields and inflation rise together.

However, even in this situation bond funds almost always provide a positive return (if held for their duration) because bond yields and inflation rise together.

One caveat is that annuity pricing can vary over time, not only because bond yields fluctuate but also because insurance companies are not always hungry for your annuity dollars.

I ask because before reading all the great links you have provided i always thought of bonds as safe but rather boring as i believed one was always limited to the profit on the yields.

I always thought if earnings yield from equities is better than bond yields then stocks are a reasonable buy by virtue of the fact that stocks have a growing earnings coupon but bonds don't.

The GE Capital bonds always traded with more yield, even though the rating was identical.

The redemption yield on the bond is a function of the price paid for the bond (which will almost always differ from its face, or par, value), the coupon rate and the length of time to go to maturity.

However, strip bonds always trade at discounts, so tax is paid only on an amount equal to the yield to maturity.

• 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.

The yield on Germany's bonds was always relatively low as it is regarded as a borrower that is certain to repay.

This is why fixed annuities are always the current investing fad when markets are down, flat, or volatile; and / or when CDs and bonds aren't yielding anything (which has been the case since 2002).