Quotes About Bonds

The commercial banker performs three near-sacred functions central to any capitalist society: the safeguarding of other people's money; the provision of working capital to businesses, without which the economy cannot function; and the creation of money. By contrast, the investment banker sells stocks and bonds to the public, a much riskier and morally more ambiguous activity.

If you decide to buy bonds or a bond fund, make sure the average maturity is less than the time horizon of the savings.

Treasury securities issued with a maturity of one year or less are called "bills"; from one to 10 years, "notes"; and over 10 years, "bonds." Notes and bonds yield an interest coupon every six months. Bills do not—rather, they are issued at a discount and redeemed at par; the difference is their "yield.")

Paradoxically, in the long run, bonds are at least as risky as stocks. This is because stock returns are "mean reverting." That is, a series of bad years is likely to be followed by a series of good ones, repairing some of the damage.

Bonds are even worse, since their returns do not mean revert—a series of bad years is likely to be followed by even more bad ones, as happened during the 1970s. This is the point made by Jeremy Siegel in his superb treatise, Stocks For The Long Run. Professor Siegel pointed out that stocks outperformed bonds in only 61% of the years after 1802, but that they bested bonds in 80% of ten-year periods and in 99% of 30-year periods. Looked

When stocks perform poorly, in order to raise living expenses you will be selling bonds, since their allocation will rise. Just do not forget to replenish the bond bucket with the proceeds of stock sales and to also take your living expenses from the stock bucket as well when times are flush.

Looked at from another perspective, in the 30 years from 1952 to 1981, stocks returned 9.9% and bonds returned only 2.3%, while inflation annualized out at 4.3%. Thus, during this period, the bond investor lost 2% of real value on an annualized basis, while the stock investor made a 5.6% real annualized return. The last fifteen years of that period were years of high inflation, so this is just another way of saying that stocks withstand inflation better than bonds. Short-term

Whether you invest in stocks, bonds, or for that matter real estate or any other kind of capital asset, you are rewarded mainly for your exposure to one thing—its risk. We'll learn just how to measure that risk and explore the interplay of risk and investment return. Over

A good rule of thumb is to never, ever pay more than 15 years fair rental value for any residence.c This computes out to a 6.7 percent (1/15th) gross rental dividend, or 3.7 percent after taxes, insurance, and maintenance, which is about what you might expect from a mixed portfolio of stocks and bonds.

Do not trust historical data—especially recent data—to estimate the future returns of stocks and bonds. Instead, rely on interest and dividend payouts and their growth/failure rates.

Cork had no idea what passed between them, though he could guess about part of it. In his own mind it was, as Henry Meloux had said long ago, that there were spiritual bonds connecting certain people, that they were two sides of the same leaf, two halves of a broken stone, and that it was not about love, as most people thought of that word, but about a wholeness that was there when the two parts came together.

In fact, wealth-maximizing individuals compare the after-tax costs of debt with the after-tax returns from bonds, liquidating bond positions to pay off loans when the costs of debt exceed the returns from bonds. Rational investors consider liability positions when making asset allocations.

Anticipated receipt of a fixed amount from life insurance proceeds represents a virtual fixed-income asset, suggesting a diminished role for bonds in an investor's portfolio.

The most famous of these is the Law of Jubilee: a law that stipulated that all debts would be automatically cancelled "in the Sabbath year" (that is, after seven years had passed), and that all who languished in bondage owing to such debts would be released.

Charity is the cement that unites communities to God and individuals to each other so that he who contributes to the union of hearts in a community binds it indissolubly to God.

Friends are what God gives you to make up for your family.

If the great Government of the United States were a private corporation no bank would take its name on a piece of paper, because it has cynically repudiated the words engraved upon its bonds.

Those tax-exempt bonds were put in so that a town or a state or a government could sell more bonds than it ought to.

There is a lot that binds Germany to Turkey, and even if we have a difference of opinion on an individual matter, the breadth of our links, our friendship, our strategic ties, is great.

Blunders, no, only friendship binds us to honesty - attracting crypts of mushrooms in the wake of our snowboards.

What is commonly called friendship is only a little more honor among rogues.

Freedom is the natural state, acceptance of bonds is a choice we make. We prefer to accept loss of freedom to losing something much less valuable but which we are not willing to sacrifice.

While not impossible, it is especially challenging for teenage parents to develop bonds with their children. A high percent of them were themselves children of teenage parents and have never experienced appropriate parenting.

Physical, social, mental and emotional development all continue. In some cases, children are left in care for extended periods. They form bonds with substitute parents which result in additional losses when those bonds are later severed. In other situations, children are moved so frequently that they learn not to trust or show affection to anyone. Their ability to form close and lasting bonds is permanently damaged.