1. Ordinary shares do not carry fixed returns to investors and do not have to be redeemed. 2. Annuities provide a fixed return on a lump sum deposit. 3. Bonds are expected to rise amid continuing concern about Asian economies, which prompted investors to seek the fixed returns of U.S. and European bonds this week. 4. Bonds become more attractive to investors when interest rates fall because of their fixed returns. 5. Bond prices generally rise when interest rates are falling because investors can lock in fixed returns. 6. Bond prices rise when rates are falling because investors want to lock in fixed returns. 7. Bonds fall when the inflation threat intensifies because, over time, rising prices reduce value of fixed returns. 8. A higher inflation rate is the bane of bond investors, whose fixed returns fall in value when inflation accelerates. 9. A larger increase would indicate that the Fed is increasingly concerned about inflation, which is bad for bonds, because they pay a fixed return. 10. A weaker dollar diminishes the value of Treasuries held by overseas investors, whose fixed returns are potentially eroded if converted into their base currency. |