On the topic of interest rates, many investors are uncertain as to what happens to
bond values when the Federal Reserve Bank increases interest rates.
Determining total
bond values is an arduous process for many reasons: 1) Bonds do not have a perpetual life like stocks, so values constantly change, 2) Individual bond issues count in the millions, whereas stocks count only in the thousands, 3) Most bonds are privately traded thus most transactions are never published on any exchange, 4) New issues of bonds are published, redemptions generally are not, 5) Bonds, Debt, and Loans are often mis-categorized, e.g., debt securities are always loans, but loans are not always debt securities or bonds.
More buyers have caused
bond values to increase and yields to fall, affecting annuity rates, pension fund income, and debts.
When interest rates rise,
bond values fall, because newer bonds become available at a higher rate.
The report, audited by KPMG, said the huge increase in net profit was due mainly to favourable trading results and higher
bond values.
Bond values of Israel-based Elbit Imaging have dropped after a media report said that Bank Hapoalim (POLI.TA) was planning to appoint a receiver for the shares of the company.
Philippine
bond values made gains on assumptions that the central bank would maintain its interest rate.
PolarTek is a white ink which can be used over many existing ink systems to deliver very high
bond values with all laminating processes, as well as very low retained solvents.
Aviva reported a net loss of Au885 million for 2008 - despite operating profits - because of the performance of investment markets following falls in equity, property and
bond values. This compares with a profit of Au1.5 billion for 2007.
Aviva posted operating profits for 2008 of pounds 2.3bn, up 4% on a year earlier, but reported a net loss of pounds 885m because of the performance of investment markets following falls in equity, property and
bond values.
With Lehman gone into bankruptcy, the
bond values have shrunk to about 15 per cent of face value, while banks that had offered the leverage are now making margin calls ranging from 50 to 90 per cent.
In the data, the most striking change is the jump in
bond values. The mean
bond value prior to Proposal A for high-spending school districts was $7568 per pupil.
