I cannot comprehend the below paragraph, could you please help me explain the meaning of this paragraph in simple language?<\/p>
Negative yields could also be a consequence of the ecology. Choosing to not own these bonds as an active allocation decision can (even with good cause due to their negative yields) carry risk for certain investors. The potential for higher tracking error to their benchmark or underperformance versus their peers. That is, as government bonds have an increased representation in many bond indexes that are used as benchmarks, holding these bonds to stay close to the benchmark also carries a cost. And this cycle reinforces itself: as continued investor demand meets fewer new bonds available to match indexes, investors may have to accept this cost in order to manage risk versus their benchmarks.<\/p>", "transcribed_text": "", "related_book": { "title": "Managerial Accounting Creating Value in a Dynamic Business Environment", "isbn": "78025664, 978-0078025662", "edition": "10th edition", "authors": "Ronald Hilton, David Platt", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/293.jpg", "uri": "\/textbooks\/managerial-accounting-creating-value-in-a-dynamic-business-environment-10th-edition-293", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8862040395", "uri": "\/textbooks\/earn-more-without-hiring-an-expert-5-top-marketing-strategies-for-small-business-owners-1st-edition-979-8862040395-139914", "name": "Earn More Without Hiring An Expert 5 Top Marketing Strategies For Small Business Owners", "edition": "1st Edition" }, "question_posted": "2024-06-10 01:22:29", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/two-cars-of-the-same-mass-run-headon-into-each", "description": "Two cars of the same mass run head-on into each other at C. After the collision, the cars skid with their brakes locked and come to a stop in the position shown in the lower part of the figure....", "stars": 3 }, { "url": "\/a-pair-of-inphase-stereo-speakers-is-placed-side-by", "description": "A pair of in-phase stereo speakers is placed side by side, 0.914 m apart. You stand directly in front of one of the speakers, 2.44 m from the speaker. What is the lowest frequency that will produce...", "stars": 3 }, { "url": "\/study-help\/psychology\/useful-in-this-situation-why-or-why-not-1984442", "description": "useful in this situation? Why or why not?", "stars": 3 }, { "url": "\/carter-corporation-made-sales-of-900-million-during-2016-of", "description": "Carter Corporation made sales of $900 million during 2016. Of this amount, Carter collected cash for $871 million. The company's cost of goods sold was $280 million, and all other expenses for the...", "stars": 3 }, { "url": "\/study-help\/questions\/on-its-december-31-2018-statement-of-financial-position-abc-9901811", "description": "On its December 31, 2018, statement of financial position, ABC Co. reported its investment held for non-trading securities, which had cost $600,000, at a fair value of $550,000. On December 31, 2019,...", "stars": 3 }, { "url": "\/study-help\/questions\/una-caracterstica-de-los-procesos-de-remocin-qumica-refiere-a-3481817", "description": "Una caracterstica de los procesos de remocin qumica refiere a: La utilizacin de procesos de transformacin que se dan por la intervencin de la electricidad y un componente qumico Maquinado ultrasnico...", "stars": 3 }, { "url": "\/study-help\/questions\/the-table-below-shows-the-number-of-visitors-to-a-1027056", "description": "The table below shows the number of visitors to a museum over a period of 5 days. Monday Tuesday Wednesday Thursday Children 120 110 90 135 Adults 130 140 125 105 Which stack plot best represents the...", "stars": 3 }, { "url": "\/study-help\/questions\/justify-whether-or-not-you-believe-that-penalty-enhancements-should-1093473", "description": "Justify whether or not you believe that Penalty Enhancements should attach to crimes based on hate or bias?", "stars": 3 }, { "url": "\/study-help\/questions\/the-company-ceo-of-a-heavily-indebted-company-considers-taking-3260726", "description": "The company CEO of a heavily indebted company considers taking on a risky negative NPV project. In practice, the debtholders can best prevent this through 1 point a haircut. monitoring. increasing...", "stars": 3 }, { "url": "\/study-help\/questions\/3-how-do-guss-demands-fit-into-the-category-of-1060781", "description": "3. How do Gus's demands fit into the category of expecting Karen to exhibit strong organizational citizenship behavior?", "stars": 3 }, { "url": "\/study-help\/questions\/on-december-31-2010-gold-company-purchases-80-of-the-1091849", "description": "On December 31, 2010, Gold Company purchases 80% of the common stock of Silver Corp. for its underlying book value of $480,000. On that date, the fair value of non-controlling interest was equal to...", "stars": 3 }, { "url": "\/study-help\/questions\/while-writing-your-business-plan-you-think-about-how-many-5052246", "description": "While writing your business plan you think about how many sales you will need in your first few months of operation in order to start covering your costs. You're primarily worried about some of your...", "stars": 3 }, { "url": "\/study-help\/modern-principles-of-economics\/from-the-following-chart-draw-the-demand-curve-for-pencils-1556518", "description": "From the following chart, draw the demand curve for pencils (in hundreds): pg53 Price $5 Quantity Demanded (in hundreds) 60 $15 45 $25 35 $35 20", "stars": 3 }, { "url": "\/study-help\/modern-principles-of-economics\/cars-and-gasoline-are-complements-what-will-happen-to-the-1556513", "description": "Cars and gasoline are complements. What will happen to the demand curve for gasoline if the price of cars decreases? Why? (Hint: What happens to the quantity demanded of cars?) pg96", "stars": 3 }, { "url": "\/study-help\/modern-principles-of-economics\/assume-that-butter-and-margarine-are-substitutes-what-will-happen-1556514", "description": "Assume that butter and margarine are substitutes. What will happen to the demand curve for butter if the price of margarine increases? Why? pg85", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/find-the-limit-of-each-sequence-show-steps-and-explanations-2550773", "next": "\/study-help\/questions\/consider-the-surface-s-x-y-z-2-2550775" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Finance", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-finance" }, { "name": "I cannot comprehend the below paragraph, could you please help me explain", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/i-cannot-comprehend-the-below-paragraph-could-you-please-help-2550774" } ], "skill_details": { "skill_id": "13", "skill_name": "Finance", "parent_id": "1" } }}