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Bonds in sentence

2285 examples of Bonds in a sentence

Another goal of lowering the yield on long-term bonds was to stimulate demand for equities.
In short, the ECB would be unable to respond to an economic downturn by lowering interest rates and buying long-term bonds.
That trade deficit is financed by foreign investments in America, as savers the world over increase their holdings of US stocks and bonds.
The euro has made Italian government bonds as good as German government bonds, because the ECB is willing to accept both on an equal basis as collateral for ECB loans.
This need not mean outright default; a plan to repay principal and interest with low-interest securities rather than cash – or to withhold income tax on interest earned from government bonds, crediting those taxes against the obligations of American taxpayers – would achieve the same result.
Price-to-earnings ratios in the US are 50% above the historic average, private-equity valuations have become excessive, and government bonds are too expensive, given their low yields and negative term premia.
The change is already underway: issuances of green bonds more than tripled between 2013 and 2014, to more than $35 billion worldwide.
In November of last year, the US Federal Reserve’s decision to launch a new cycle of “quantitative easing” (buying up government bonds through monetary creation) triggered fierce criticism in Europe.
While the European Central Bank has also been buying government bonds since last spring, the amount is relatively small (€70 billion, compared to the Fed’s $600 billion program), and is meant only to support troubled eurozone members, with particular care taken to avoid any impact on money supply.
Emerging-market countries could also invest in euros, if only they were offered such liquid assets as US Treasury bonds – therein lies the current debate over the proposed creation of “eurobonds.”
The real sticking point is that the government would have to issue bonds to finance its extra spending.
Assuming a limit to foreign investors’ willingness to buy these bonds, Greeks would have to buy them.
Developing countries, meanwhile, are getting smarter about how to leverage the $406 billion in remittances that their expatriate citizens will send home this year – by issuing diaspora bonds, for example, or by creating targeted investment opportunities for them.
Since then, emerging-market currencies and fixed-income securities (government and corporate bonds) have taken a hit.
The era of cheap or zero-interest money that led to a wall of liquidity chasing high yields and assets – equities, bonds, currencies, and commodities – in emerging markets is drawing to a close.
Thus, many emerging markets’ growth rates in the next decade may be lower than in the last – as may the outsize returns that investors realized from these economies’ financial assets (currencies, equities, bonds, and commodities).
To achieve this, the government will adopt new regulations and create “green bonds” to finance remediation and low-carbon energy sources.
This has kept short- and long-term interest rates low (and even negative in some cases, such as Europe and Japan), reduced the volatility of bond markets, and lifted many asset prices (including equities, real estate, and fixed-income private- and public-sector bonds).
These events have fueled fears that, even very deep and liquid markets – such as US stocks and government bonds in the US and Germany – may not be liquid enough.
A second cause lies in the fact that fixed-income assets – such as government, corporate, and emerging-market bonds – are not traded in more liquid exchanges, as stocks are.
As a result, when surprises occur – for example, the Fed signals an earlier-than-expected exit from zero interest rates, oil prices spike, or eurozone growth starts to pick up – the re-rating of stocks and especially bonds can be abrupt and dramatic: everyone caught in the same crowded trades needs to get out fast.
As more investors pile into overvalued, increasingly illiquid assets – such as bonds – the risk of a long-term crash increases.
In the eurozone, euphoria followed the ECB’s decision to provide support with potentially unlimited purchases of distressed countries’ bonds.
For example, bondholders could be encouraged to exchange existing bonds for GDP-linked bonds, which offer payouts pegged to future economic growth.
Bank bonds could also be reduced and converted into equity, which would both avert a government takeover of banks and prevent socialization of bank losses from causing a sovereign debt crisis.
Ultimately, that means guaranteeing the eurozone’s survival with Germany’s economic might and assets: unlimited acquisition of the crisis countries’ government bonds by the European Central Bank, Europeanization of national debts via Eurobonds, and growth programs to avoid a eurozone depression and boost recovery.
Without the additional money that GIPS central banks created in excess of their countries’ requirements for internal circulation, trade deficits could not have been sustained, and the GIPS’ commercial banks would have been unable to prop up asset prices (which all too often were those of government bonds).
Of the roughly $200 trillion in global financial assets today, almost three-quarters are in some kind of debt instrument, including bank loans, corporate bonds, and government securities.
Corporations are allowed to deduct interest payments on bonds, but stock dividends are effectively taxed at the both the corporate and the individual level.
Policymakers can also help find ways to reduce barriers to the development of stock markets, and to advance ideas for new kinds of state-contingent bonds, such as the GDP-linked bonds that Yale’s Robert Shiller has proposed.
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