Search Results for ‘bonds’

Bonds have a certain yield determined at the time you buy a new bond. The expected yield is usually greater than the interest rate at that time. If the interest rate goes up, the bond is not as attractive to buyers, because new bonds will give better yields to compete with the higher interest...

I understand bonds lose face value when rates go up, but I'm curious if there's a ratio of sorts, e.g. rates go up 1%, bonds go down x%? Looking at ZAG, it dropped about 3% since the rate hike was announced. VAB dropped similarly, I believe. Is this expected?

Hi, I have been a DIY investor for some time. My portfolio has been 60/40 stocks/bonds mix. Now that I have just bought my first home, I wonder if I should bother with bonds. My mortgage is fixed for two years at 2.4%. My bond ETF portfolio is probably yielding about 1.4% after fees, etc. My...

As I discovered earlier this year, bonds are free to buy and sell at Questrade. All one has to do is pick a bond from the daily Bonds Bulletin, and then call the bond trade desk to place the order. Sounded easy enough, and since neither I nor my husband like bonds ETFs, I thought that buying...

Hi guys, Just wondering what your thoughts on an alternatives to XBB (MER 0.33). Haven't really touched my portfolio in a while, and figured it may be a good idea in the long run to switch to a lower MER bond etf. Did some quick calculations and the savings over 20 years could be considerable...

Hey guys, newbie here. I'm currently playing a game in class where we have a million dollar portfolio and we invest in different stocks, bonds, and options. One requirement is buying and selling a few bonds. The problem with this is that we only have a couple months with our portfolio, so I'm...

Hi everyone, apparently Vanguard is going to launch a new etf - Vanguard Total International Bond Index Fund Some of the features are: estimated MER will be 0.20% for investors hedged only ex-US. This has been a question on my mind for some time. We often hear that when buying equities...

I'm considering buying bond funds over bond issues directly but I have a couple of questions. 1. How are distributions generated? I had assumed that the coupon is passed along to investors but then how does the fund purchase replacement bonds? It's not using the money that I spend to...

Hey, I'm an 18 year old who's taking a year off before attending university for Finance in Canada or overseas in England. Regardless, I want to work in Toronto upon completion of my degree so I can live at home for a few years and amount wealth. Before we delve into my course(s) of action I'd...

Hello, I've recently saved up enough for a good house down payment, but with housing market as over valued as it is, I'm holding off. It'll adjust. In the meantime, what's a good thing to do with my money? I'm not in for a huge return but I hate for value of my money to be eroded away by...

Hi all, First off, I want to thank everyone for doing a great job on this forum. As a younger investor, I find this very informative and helpful. I've been looking around for the answer to my question but can't find it. When I had smaller distributions, I didn't worry about this. But as my...

In the thread on the explanation of the national debt, forum member byron84 asked some fundamental questions about bonds. In this post, I will try to clarify some of the basic terminology and mechanics of how bonds work. If I make any mistakes, please correct me. A bond is basically a big loan...