The article focuses on how to not lose money in bonds and bond funds. Information about how bonds and bond returns function is provided. An examination of interest rate risk and default risk, which are two main types of risk that bond investors have, is presented. The interest rate risk ...
Generally, bonds are considered safer than stocks and used as a way to mitigate risk. But few investments come with zero risk and risk is relative. Why are you investing? When do you need the principal back? Consider these two questions when deciding the type of bond to buy and the matur...
【例句10】Few IFAs are prepared to run the risk of advising a client to switch out of equities and into bonds and cash in case they get their timing wrong. （很少有IFA愿意冒着建议客户退出股票、转而投资债券和现金的风险，以防时机不对。）[剑桥高级学者辞典]【例句11】The officers had run ...
aThe spread between the interest rates on bonds with default risk and default-free bonds (or less-risky bonds), is called risk premium. It is the minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk-free asset in order to induce ...
The trade-off here is clear: High-yield bonds offer greater yields but come with a higher risk of default. That increased income compensates for the greater probability of seeing your money disappear entirely. "A high-yield bond is like making a loan to a company that might have more risk...
The factor is the nominal bond risk premium, best measured as the Cochrane-Piazzesi (2005, CP) factor. This paper ties the pricing of stocks in the cross-section to the pricing of bonds of various maturities, two literatures that have been developed largely in isolation. A parsimonious ...
RISKY BONDS & THE DOLLAR INDEX 来自 国家科技图书文献中心 喜欢 0 阅读量: 35 作者: HL Simons 摘要: Financial markets are full of shorthand, which causes cases of mistaken identity. Many times people say "commodities" when they really mean crude oil, maybe with a little gold thrown in ...
Diversification is the other primary tool for protecting against sovereign credit risk. Owning bonds issued by several governments in different parts of the world is the way to achieve diversification within the sovereign debt market. A single negative credit event for one government will have a limi...
Low-rated bonds are also known asjunk bonds. Inflation Risk Just as inflation erodes the buying power of money, it can erode the value of a bond's returns. Inflation risk has the greatest effect onfixed bonds, which have a set interest rate from inception. For example, if an investor pu...
Bonds carry varying degrees of risk depending on their maturities, which can range from a few months to several decades, and the credit rating of the issuing entity. Investors can choose which type of bonds to invest in based on their goals and risk tolerance. In times of economic instability...