I counsel those many who invest in dollar assets at near-zero interest yield to switch soon into a diversified portfolio that earns the higher average worldwide yields.
The average interest yield on the longer bonds was 6.2 percent, up from 5.3 percent in a 10-year bond auction last month.
Net interest income fell 1percentto to $4.6 billion, as the bank made less money on some of its assets, pushing its net interest yield down 0.31 percentage points, to 3.27percentt.
On Sept. 22, Portugal raised 750 million euros, or $1 billion, in a debt auction that drew strong investor demand, but at an average interest yield of 6.2 percent on the longer bonds, up from 5.3 percent a month earlier.
Back in the 1940's and early 1950's, it was accepted wisdom that the dividend yield on stocks should be higher than the interest yield on bonds -- even without any tax breaks -- to compensate investors for the risks of capital losses.
Famously, Hobbes argued that clashing self-interests yield a generalized prisoner's dilemma such that each person will have reason to defect from moral arrangements unless a "we" is constructed that has coercive authority.
BAC's gains were derived from net interest yield, loan growth and increased income from service charges.
You need to know which type of bond you are being offered, since the difference in interest yield will be significant.
I am 30 years old and I have never gone travelling on my own or saved up six months' rent in a high interest yield savers' account.
When the common stock trades below $25, the bond is valued by its interest yield.
