Category Capital Markets

Bonds – How Inflation And Interest Rates Affect Bonds – Investopedia

Bonds – How Inflation And Interest Rates Affect Bonds Ownership of a bond is the ownership of a stream of future cash payments. Those cash payments are usually made in the form of periodic interest payments and the return ofprincipal when the bond matures. In the absence of credit risk (the risk of default), the value of that stream of […]

Rising Rates and Your Investments

Rising Rates and Your Investments What You Should Know The bond markets are extremely active, with interest rates constantly changing in response to a number of factors including changes in the supply and demand of credit, Federal Reserve policy, fiscal policy, exchange rates, economic conditions, market psychology and, above all, changes in expectations about inflation. […]

Reading Bond Prices In the Newspaper

What You Should Know  Reading Bond Prices In the Newspaper Where to Look If you’re interested in buying or selling bonds, it’s a good idea to start out by comparing the prices of similar securities. Just as you would with any important purchase, such as a home or a car, checking out the current prices […]

101 Free Resources for Bond Investors

101 Free Resources for Bond Investors April 27th, 2012 by David Waring,     Quick Jump Links: Bond Market Blogs Bond Market on Twitter Traditional Media Bond News Sources Bond Market Data Sources Free Bond Market Research Free Bond Market Education Books on the Bond Market Discount Bond Brokers Ratings Agencies Did we miss […]

Debt Investing Concept: Credit Curves

Debt Investing Concept: Credit Curves While this post is more particular to high yield and investment grade bonds, than to distressed investing, I believe it is an important concept considering what is going on in certain pockets of the market today. A credit curve is essentially the spread over treasuries of various maturities for a single bond […]

Current Environment in high yield

– Opportunity in high yield still exists given attractive spreads and lower interest rate sensitivity  Fundamentals Corporate balance sheets remain healthy and supportive of the high yield market Companies continue to refinance qt lower rates and extend debt maturity profile Default rates remain around 1%, still well below historical averages (4%) Technicals Retail fund flows […]

Bond Basics: Yield, Price And Other Confusion

Understanding the price fluctuation of bonds is probably the most confusing part of this lesson. In fact, many new investors are surprised to learn that a bond’s price changes on a daily basis, just like that of any other publicly-traded security. Up to this point, we’ve talked about bonds as if every investor holds them […]

Duration—What an Interest Rate Hike Could Do to Your Bond Portfolio

If you own bonds or have money in a bond fund, there is a number you should know. It is called duration. Although stated in years, duration is not simply a measure of time. Instead, duration signals how much the price of your bond investment is likely to fluctuate when there is an up or […]

Differences Between Warrants & Options

Differences Between Warrants & Options – Introduction Stock options and Stock warrants are two extremely popular derivative instruments that are traded in stock and derivative exchanges all over the world. Because stock options and warrants share the same leverage characteristics, they have been commonly assumed to be the same instrument called different names. Nothing is […]

Advanced Bond Concepts: Duration

Advanced Bond Concepts: Duration Understanding what duration is, how it is used and what factors affect it will help you to determine a bond’s price volatility. Volatility is an important factor in determining your strategy for capitalizing on interest rate movements. Furthermore, duration will also help you to determine how you can protect your portfolio […]