The phrase "return on bonds" is a correct and commonly used term in financial writing.
It refers to the amount of profit or interest earned on a bond investment. Example: "Investors should carefully consider the potential return on bonds before deciding which ones to include in their portfolio."
Last year, the total return on bonds was 8percentto9percentcent.
The return on bonds is cash plus some additional amount to account for the duration of the bond.
Over the past ten years the total return on unleveraged investment in American property has outpaced the return on bonds and exactly matched the return on shares.
Although pyramid selling schemes, in which improbably high rates of return on bonds are financed by the next lot of sales, are against the law, nobody involved in "Women Empowering Women" is either buying or selling.
Assuming a more conservative average return on bonds of 1.9 percent — a reasonable estimate based on bond yields now, according to Vanguard — the same 20 percent drop in the stock market would cause the overall portfolio to decline by about two percentage points more, or 11.2 percent.
They also advised companies that a lower allocation to equities would mean far higher contributions to their pension funds, because the return on bonds would be lower.Some of those consultants gave a probability of only 1% to the bear market of the past three years, says Nathan Gelber, chief investment officer of Stamford Associates, an unconventional pension-fund consultancy in London.
Bondholders, however, may benefit as the government vows to stand behind the companies' obligations and the returns on bonds increase.
Rising bond yields are generally bad for stocks, because more lucrative returns on bonds can present investors with an appealing alternative to stock investing.
Savers prefer the safety and predictability of a debt contract, which is why they accept lower returns on bonds over time than on equities.
"We've never had an extended period where rates of returns on bonds have been so low and valuation on stocks so high".
Returns on bonds suffered from rising yields last year, though no reason was given as to why Mr El-Erian is stepping down.
