Bonds
in sentence
2285 examples of Bonds in a sentence
Rising interest rates on corporate
bonds
portend slower growth in the US.
The fundamental benchmark interest rates in modern financial markets are the so-called “risk-free” rates on government
bonds.
But, as both traditional Keynesians and FTPL followers would note, quantitative easing – which amounts to an exchange of money for its close substitutes (zero-interest bonds) – becomes less effective in stimulating demand over time.
As the bond market begins, finally, to price in greater relative risk in euro-zone sovereigns, the intellectual underpinnings of the idea of a global division between emerging-market and developed-market
bonds
will be fundamentally tested.
In order to enable the corporate sector to manage the transition to a modern knowledge-based economy, China must also rebalance the financial system by carrying out a shift from bank and short-term funding toward equity and long-term
bonds.
Because foreign investors hold the majority of US government debt, this projection implies that they will absorb more than $6 trillion in US
bonds
during the next ten years.
In that case, US
bonds
would no longer look like a safe asset, and investors would demand a risk premium.
Because financial markets look ahead, they are already raising the real (inflation-adjusted) interest rate on long-term US
bonds.
The real rate on the ten-year US Treasury bond (based on the Treasury’s inflation-protected bonds) has gone from zero in 2016 to 0.4% a year ago to 0.8% now.
With annual inflation running at about 2%, the increase in the real interest rate has pushed the nominal yield on ten-year
bonds
to 3%.
Looking ahead, the combination of the rising debt ratio, higher short-term interest rates, and further increases in inflation will push the nominal yield on ten-year
bonds
above 4%.
One would have hoped that the banks might have managed the default risk on the
bonds
in their portfolios by buying insurance.
The ratio of total financial assets (stocks, bonds, and bank deposits) to GDP in the United Kingdom was about 100% in 1980, while by 2006 it had risen to around 440%.
Now the ECB needs to think about how to help everyone, not just the bankers who bought the
bonds.
Furthermore, the European Commission’s proposal that the EIB support privately financed infrastructure projects through guarantees for corporate bonds, called “project bonds,” must be accelerated and expanded.
But there is not yet much demand for such
bonds
in Europe, and the initiative’s development will take time.
Therefore, eurozone members, possibly through the EIB, should guarantee “green covered bonds,” securitized by revenue from existing green-sector assets, such as renewable energy.
The over-lending was so widespread that at one point it drove down the yield differential between Greek and German
bonds
to just six basis points – a ridiculously low level for two countries that differ so fundamentally in terms of economic management and financial conditions.
All this result shows is that owners of stocks and
bonds
tend to lie to government surveyors.
These policies, by design, lowered the return on sovereign bonds, forcing investors to seek yield in markets for higher-risk assets like equities, lower-rated bonds, and foreign securities.
Trump has also promised an $800 billion-$1 trillion program of infrastructure investment, to be financed by bonds, as well as a massive corporate-tax cut, both aimed at creating 25 million new jobs and boosting growth.
If bank assets amount to over 300% of GDP – more than $30 trillion – so, too, must the combination of bank deposits, bank bonds, wealth-management products, or other bank liabilities held as assets by companies or individuals.
A classic case was Merkel’s veto of a proposal by Italian Prime Minister Matteo Renzi to fund refugee programs in Europe, North Africa, and Turkey through an issue of EU bonds, an efficient and low-cost idea also advanced by leading financiers such as George Soros.
Nevertheless, the market for Japanese Government
Bonds
(JGBs) has so far remained stable.
They can always get the money they need by issuing
bonds.
According to this oft-repeated fallacy, governments can raise money by issuing bonds, but, because
bonds
are loans, they will eventually have to be repaid, which can be done only by raising taxes.
They might choose to do so, but mostly they just roll them over by issuing new
bonds.
The longer the bonds’ maturities, the less frequently governments have to come to the market for new loans.
But we will never be dissuaded from helping our Syrian neighbors in their most difficult hour, given the special
bonds
emanating from centuries of shared history.
Emerging-market stocks and
bonds
are down for the year and their economic growth is slowing.
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