Investing in corporate bonds? ppt

... research the company issuing the corporate bonds if you’re thinking of investing. Bond basics: Things you need to know before investing 14 Understand the key features of corporate bonds and assess ... you buy are unlikely to increase in value during the time you have the investment). Can you lose money by investing in corporate bonds? Some investors believe that corpor...

Ngày tải lên: 06/03/2014, 04:20

... can be incorporated in the intensity-based pricing model. Elton et al. (2001) estimate the effective tax rate to be 4.875%. Using this tax rate, we re-estimate the intensity-based pricing model ... avoids using an ad-hoc smoothing method to calculate zero-coupon interest rates. In principle, a joint estimation of all parameters in the model is most efficient. However, since the number o...

Ngày tải lên: 29/03/2014, 06:21

... rise even with no inflation whatever, as interest rates decline in a zero-inflation environment. Property values certainly increased in 2003–04 when interest rates and inflation were at very ... office building, a blue-chip stock, or even a T-note, will involve substantial risk, since a small decline in the asset’s value will cause a much larger decline in one’s investment in i...

Ngày tải lên: 15/12/2013, 13:15

... started to grow again beginning in the latter part of 2004. Investors in this sector should expect long- term internal growth roughly in line with inflation. Office rents suffered during the period ... problems in certain segments of its business some years ago, many investors blamed Mr. Rainwater for not having spent suf - ficient time personally monitoring the company’s business....

Ngày tải lên: 15/12/2013, 13:15

... what to invest in, you need to determine why you’re investing you need to define your investment goals. If you’re going to need those liquid assets in the next year or two, just sitting on ... the best thing to do. Put your cash in the bank, maybe in a CD, where you know you’ll have it when you need it. Investing whether in stocks, bonds, or REITs—is still an uncertain venture...

Ngày tải lên: 15/12/2013, 13:15

... comes in various shapes and sizes, and can be increased or decreased in ways other than overweighting or underweighting sectors or stocks, or indulging in heavy trading. Some sectors are inherently ... divorce. d. Investing for Yield. Many believe that yield is the name of the game in REIT investing. And who can blame ’em? Historically, two- thirds of the total returns from RE...

Ngày tải lên: 15/12/2013, 13:15

... and maturity, investors benefit by owning pools that contain numerous underlying loans, thus minimizing the negative impact of any single refinancing. As with corporate bond investing, bond mutual funds ... principal balance if inflation were 3% for the first five years and increased to 4% for the remaining term. Instead of needing $77,898 to maintain the principal’s purchasing power, th...

Ngày tải lên: 15/02/2014, 13:20

... constant-maturity in ation-indexed and nominal yields both in the US and in the UK. In ation-indexed bonds hav e been available in the UK since 1983 and in the US since 1997. In ation-indexed bonds ... active in the TIPS marke t. The unwinding of its large TIPS in vent ory in the w eeks follo win g its ban krup tcy, comb in ed with a sudden increase in the cost of financin...

Ngày tải lên: 16/02/2014, 02:20

... on a single day in 2008, plotted against their remaining maturity. The figure clearly reveals pronounced inverse humps along the German term structure, which in time-to-maturity terms coincide ... liquidity arising from scale is beneficial to all traders. Uninformed trading in the market for on-the-run bonds, like hedging or portfo- lio rebalancing, attracts informed traders who minimize...

Ngày tải lên: 16/02/2014, 02:20