Salomon Brothers Emerging Market Floating Rate Fund buys adjustable-rate bonds from emerging-market companies and countries.
One area that provides protection against rising rates is floating-rate bonds, notes Ms. Bewick.
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This year saw the launch of Nationwide savings accounts targeted at business customers and a range of fixed rate bonds.
Most are familiar with CPI-linked bonds such as TIPS or floating-rate bonds.
Those who read Forbes magazine will see my article in the September 12 issue that extolls the virtues of adjustable rate bonds and preferreds.
Variable rate bonds should be looking pretty attractive at this point.
The ones that do pay interest resemble ordinary fixed-rate bonds.
And Apple sold floating-rate bonds that mature in three and five years at rates of 0.05 and 0.25 percentage point over the three-month London interbank offered rate, an industry benchmark.
Leeds Building Society credited some of its success on the savings front to the popularity of its fixed rate bonds, which allowed customers unlimited access to a proportion of their money without penalty during the product's term.
No matter how much Barack Obama huffs and puffs, a ratings agency's job is to rate bonds, including government ones, and to speak out when it thinks the least risky asset in the world has become riskier.
Their lobbyists succeeded in convincing legislators that, as opposed to ratings agencies who have the same business model and independence conflicts and only rate bonds versus give an opinion on the financial statements as a whole, no one could think of anything auditors had done wrong that needed reforming.
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Instead of TIPS, Corso is advising clients to buy floating-rate corporate bonds.
Two main factors determine the interest rate the bonds will yield.
Underlying the rate worries, bonds -- whose fixed return makes them linked to interest rate and inflation expectations - also weakened.
Here is a chart which shows the credit spread of high yield bonds vs. the default rate of high yield bonds since 1997.
Just as in the past, high yield bonds trade at an interest rate spread over Treasury bonds, which are more liquid and less subject to default risk.
There is also the problem of reinvestment risk, meaning current bonds are paying a lower rate of interest than maturing bonds are.
Larry points out that the average interest rate on government bonds is artificially low because of the recession.
When interest rates rise, the value of (interest rate sensitive) bonds will decline.
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The rate on those bonds fell to record lows last month.
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Junk guru Martin Fridson calculates that a 1990--91 recession coupled with today's lax lending standards would give rise to a 17% default rate in junk bonds.
The 4.60% earnings rate for I bonds bought from May 2011 through October 2011 also will apply for the succeeding six months after the issue date.
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All things being equal, an investor would rather not hold a bond with a low coupon rate when new bonds are being issued at higher coupon rates.
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Because the dividends on Laffer Shares would vary depending upon GDP growth rates, the markets would discount the expected cash flows at an equity rate of return, which is considerably higher than the interest rate on government bonds.
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The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate.
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Several hedge funds are believed to have lost money when the price of GM and Ford bonds declined and their interest rate yields rose to a larger premium over Treasury bonds.
As an example with a low interest rate environment adding long bonds may not be appropriate when interest rates go up.
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