Third, investors appear to be demanding a higher term premium in the face of rising inflation expectations - the term premium is the additional compensation demanded by investors for holding a
long term bond over a short term bond.
The UAE government has scooped up the first part of a $20 billion
long term bond programme which was recently issued by the Dubai Government as part of what it called its long term financing strategy.
The liability increased at the end of 2003 even with the 9.7 per cent return because the actuarial valuation had to assume that the assets will only earn 5.75 per cent in the future (based on
long term bond rates) even though the liabilities (annuities) require a 7 per cent return.
"Strong equity gains and a weaker Canadian dollar led to an increase in assets, while higher
long term bond yields reduced most plan liabilities, which will please sponsors."
An action plan to deepen the market for
long term bonds including for deepening markets for corporate bond repos, credit default swaps etc., with specific focus on infrastructure sector, will be put in place.
'We wish to inform you that the bank proposes to raise funds by issuing perpetual debt instruments (part of additional tier I capital), tier II capital bonds and
long term bonds (financing of infrastructure and affordable housing) up to a total amount of INR500bn in the period of next twelve months through private placement mode,' the bank said, adding that its board of directors will consider the proposal at its ensuing meeting on April 20, 2019.
and Adjunct Professor of Finance at DePaul University, released new findings that show that investors with significant exposure to
long term bonds may be able to protect themselves through allocations to commodities—in particular, via exposure to the oil-related energy sector.
Back in the 60s, The Operation Twist, meant that people sold short term bonds and bought
long term bonds, which was seen as a twist, hence the name.
Because interest rates are so low, a number of advisors have gone to
long term bonds to get a higher rate.
Finance Minister Charilaos Stavrakis announced on Tuesday that the Government will issue new
long term bonds to the international markets around mid January in order to meet public needs for the 2010, which approach 2.5 billion euros.
Yields on
long term bonds are higher than yields on short term bonds; with the yield on the 3 month T-bill hovering around 5.07% well above the 4.7ish range of the 10 year note.
According to the survey, long-term bonds, especially those issued in fungible tranches, have increasingly been the instrument favoured by EU Member States to finance their government liabilities: Denmark (92%) and Finland (84%) had the highest share of
long term bonds in 1998.
