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4 strategies for diversifying your bond portfolio A bond is a type of debt security in which a company, government or government agency agrees to pay back the borrower a certain amount of interest ...
A bond ladder is one of the most popular investment strategies and helps mitigate some of the key risks of bonds. In a bond ladder, an investor buys bonds with staggered maturities – say, one ...
The types of bonds used in a bond ladder can vary, but they often include U.S. Treasurys, municipal bonds and corporate bonds. These bonds are selected based on their credit quality, interest ...
Single-price auctions are a pricing method in securities auctions that give all purchasers of an issue the same purchase price. They can be perceived as modified Dutch auctions . This method has been used since 1992 when it debuted as an experiment of the U.S. Treasury for all auctions of 2-year and 5-year notes.
A financial advisor told me the pros of building a two-part bond ladder (three-year Treasurys and 10-year corporates) to generate fixed income and cover required minimum distributions (RMDs).
Bid-To-Cover Ratio is a ratio used to measure the demand for a particular security during offerings and auctions. In general, it is used for shares, bonds, and other securities. It may be computed in two ways: either the number of bids received divided by the number of bids accepted, or the value of bids received divided by the value of bids ...
This difference in convexity can also be used to explain the price differential from an MBS to a Treasury bond. However, the OAS figure is usually preferred. The discussion of the "negative convexity" and "option cost" of a bond is essentially a discussion of a single MBS feature (rate-dependent cash flows) measured in different ways.
The US Treasury: Here you will find Treasury bonds, TIPS, Treasury notes, Treasury bills, and savings bonds. Brokerage Account: At brokerage platforms you can select from municipal or corporate ...