Yield factors in both the interest rate paid by the bond and the actual price of the bond.
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Over the past year, as interest rates have inched up and there have been concerns about credit quality, the price of some bond funds has declined as these risks all reared their heads.
Everyone else had to put up margin calls: that is, if the price of the bond changed then they had to offer up the money that would be due if there was a credit event at that price of that day.
The problem with buying bonds in a currency other than the US dollar is that if the currency weakens, then Zervos could end up taking a hit on the price of the bond when she sells them and converts them into dollars either upon maturity or for other strategic reasons.
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Changes in short interest, then, do not explain much of the stock price decline around the time of the bond-rating downgrade.
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The price of a ten-year bond issued by Mexico fell by nine percentage points at one stage.
When you buy a corporate bond, you buy it at a price that gives you, over the life of the bond, an incremental yield over the yield on a Treasury of comparable maturity.
The thinking here is that the bond price sold off because of systemic risks at the core economies, not because of Russia.
Carol Levenson of Gimme Credit, a research service, says she has never seen such a large divergence between the view of riskiness that is outlined by bond-rating agencies and that suggested by the market price of corporate debt.
According to International Financing Review, U.S. and international companies continued to take advantage of a stronger tone in the corporate bond market on Monday, with a number of deals expected to price later in the session.
Hedge funds which bet that Japan's deteriorating debt-to-GDP ratio would eventually cause its bond yields to soar as the price of bonds dropped have been repeatedly disappointed.
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Investors have bid up the price of US bonds since the financial crisis, and when bond prices increase their interest rates decrease.
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The downturn in Apple's stock price obviously hasn't dampened bond investors' enthusiasm for one of the world's most prosperous companies.
If one reviews the closing prices of the Greek two-year government bond, its price was 90.308 on May 3, and 79.570 on May 7.
One very early clue that the stock market bulls are running out of steam is price action in the U.S. Treasury bond and note futures Wednesday.
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One very early clue that the stock market bulls are running out of steam is price action in the U.S. Treasury bond and note futures Wednesday morning.
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Using the era's best computers, Milken calculated that he could dive down to the swamp's bottom and rescue the credit unworthy ... if he could pool enough of the poor suckers into one high-yield bond and price it appropriately for the risk.
Inter-dealer brokers have the only trading systems in the Canadian bond market and are the primary source of real-time price information.
The low bond yield signals no fear of inflation, but the high gold price signals the opposite.
That means staying out of the bond for a few minutes and taking the chance that the price will move.
Bond markets, which have for 12 months tried to price the risk of a eurozone breakup, now have to calculate the possibility of the breakup of the Spanish state - for secession in Barcelona would surely prompt centrifugal tendencies in the Basque region, and exacerbate the fiscal crisis in the poorest regions.
In 2012, the average municipal bond fund had a total return yield plus price appreciation of 8%.
The financial markets have already priced an awful lot of further bad news into their price, thus pushing up the income stream for corporate bond investors.
The SPDR Barclays Capital Short Term Corporate Bond ETF ( SCPB) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Barclays Capital U.S. 1-3 Year Corporate Bond Index.
That is, when yields rise the price or value of bonds declines, and in the other direction, when yields are falling, bond prices rise.
Nor has there has been any sign of the kind of rise in inflationary expectations either in consumer surveys or in bond-market movements that would justify the doubling of the gold price since the collapse of Lehman Brothers.
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PLC, one of the Reliance bond's bookrunners, attributed the decline in Reliance's bond price to a broader market correction after U.S. Treasury yields picked up.
The other dinosaur den is financial options--the equivalent of the right, for example, to buy Treasury bond futures at a certain strike price--where traders hang over the railings, screaming and waving frantically.
As of November 30, 2012, such instruments4 offered yields that were 3.83% higher than the Barclay Capital U.S. Aggregate Bond Index, and 3.32% above the Consumer Price Index, a key gauge of consumer inflation.
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