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Bonds in sentence

2285 examples of Bonds in a sentence

The first cost is a direct accounting loss: the interest rate will inevitably increase when more bonds are issued.
The second cost is implicit, but potentially far more substantial: because sterilization bonds are forced savings (and deflationary by definition), they absorb the potential investment and consumption implied by today’s trade surplus.
For example, banks would curtail mortgage lending in response to higher rates paid on sterilization bonds, forcing consumers to save more in order to buy houses.
So more bonds today would deter domestic investment and consumption tomorrow.
Moreover, the US still has a powerful weapon because other countries hold so many dollars: the current estimate is that 46% of US Treasury bonds are held overseas.
The recognition of an exit possibility reverses that basic process of forging bonds of loyalty.
Supporting further real-estate investment would make the sector’s value even more dependent on government policies, ensuring that future policymakers face greater political pressure from interests groups like real-estate developers and bonds holders.
But that means that when intervention comes to an end, interest rates will rise – and any holder of mortgage-backed bonds would experience a capital loss – potentially a large one.
With the government assuming credit risk, mortgages become as safe as government bonds of comparable maturity.
Hence, the Fed’s intervention in the housing market is really an intervention in the government bond market; the purported “switch” from buying mortgages to buying government bonds is of little significance.
US budget deficits as far as the eye can see might excite fear of losses on US Treasury bonds.
In the wake of the global financial crisis and the eurozone’s sovereign-debt crisis, China has bought government bonds, made direct investments, and sent business delegations to Europe.
During Spanish Prime Minister José Luis Zapatero’s visit to Beijing in April 2011, Wen reaffirmed China’s willingness to continue purchasing Spanish government bonds as a further demonstration of our support for Europe’s efforts to emerge from its crisis.
This basket should include, at the very least, preferred shares and bonds.
US stocks are overpriced for a world in which inflation is not totally dead and Japanese bonds are overpriced for the simple reason that the country's debt is huge and the budgets deficits on its horizon seemingly stretch forever.
Japan's is a debt that cannot be paid and its government bonds deserve junk bond rating.
Interest rates will rise to compensate investors both for having to accept a larger share of government bonds in their portfolio and for an increasing risk that governments will be tempted to inflate away the value of their debts, or even default.
Banks, for example, hold large stocks of government bonds.
A sharp drop in those bonds’ value will surely affect banks’ ability to lend to the private sector.
A decent pan-European economic recovery, and successful gradual fiscal consolidation, would allow the distressed sovereign bonds to rise in value over time.
Prices of bank shares and the Euribor-OIS spread (a measure of financial stress) signal a profound lack of confidence in the sovereign debt of distressed countries, with yields on ten-year Greek bonds recently hitting 25%.
But letting questionable banks gradually recapitalize themselves and resolving the bad debt later – perhaps with European Brady Bonds (zero-coupon bonds which in the 1990’s enabled US banks and Latin American countries to agree to partial write-downs) – won’t work if the losses are too large or the recovery is too fragile.
But investors in Treasury bonds might demand a much higher interest rate in exchange for loading up their portfolios with US debt.
While the US government would never explicitly default, it could adopt policies such as deducting income tax on interest payments, which would disadvantage foreign holders and depress the value of the bonds.
Moreover, foreign investors might fear that very high debt levels could lead to inflationary monetary policy, which would depreciate the value of the dollar and lower the real value of their bonds.
To a large extent, this collateral consisted of government bonds.
In order to stop these securities’ downward slide – and thus to save itself – the ECB bought these government bonds and announced that, if need be, it would do so in unlimited amounts.
The ECB also bought long-term bonds for its portfolio, increasing the volume of its holdings from €2.2 trillion ($2.6 trillion) in 2014 to more than double that amount now.
But the ECB’s policies also mean that it has no ammunition left to fight the next recession, which could be caused by a collapse of asset prices, starting with the price of long-term bonds.
To be sure, the ECB could expand its purchases of long-term bonds.
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