Sentences with phrase «as interest rates move»

Multifamily housing will benefit as interest rates move up, attracting immigrant and young households not ready to move into homeownership.

Anyone's calculation intrinsic value necessarily comes up with a highly subjective figure that will change both as estimates of future cash flows are revised and as interest rates move.

Regarding the second, more important, point: «as interest rates move higher» would seem to be a very strong assumption, entirely dismissing the possibility that rates may not go higher from here.

Two additional similarities between target maturity ETFs and actual bonds is, first, that they both fluctuate in price as interest rates move up and down and, second, that the market price when you buy can be a little higher or lower than the amount you'll get at maturity.

Which is why you see the daily fluctuations in the price - yield relationship of bonds as interest rates move.

As interest rates move up and down in the market, the value of your bond goes up and down.

Banks, brokerages, mortgage companies and insurance companies» earnings often increase as interest rates move higher, because they can charge more for lending.

As interest rates move higher, people naturally respond to the opportunity to earn interest by reducing the amount of cash they carry, both directly and indirectly.

Anyone's calculation intrinsic value necessarily comes up with a highly subjective figure that will change both as estimates of future cash flows are revised and as interest rates move.

The firm has warned for months that increasing debt loads at companies could stir up trouble as interest rates move higher, making it more difficult for them to refinance.

I remember buying broken mortgage REITs in the mid-90s at less than half of their net worth after they had bought exotic CMO pieces, trying to create funds where the value rose as interest rates moved higher.

Not exact matches

Controlling inflation is as much about confidence as it is about moving interest rates up and down.

Gold, meanwhile, hit a six - week low of $ 1,307.40 an ounce, as the dollar strength and bets on higher interest rates kept it on the slide having already gone dropped through its 100 - day moving average.

As they fade, the need for continued monetary stimulus will also diminish and interest rates will naturally move higher,» Poloz said in notes for a speech to the Yellowknife Chamber of Commerce.

NEW YORK, May 2 - U.S. stocks fell on Wednesday as investors digested a statement from the Federal Reserve, which left interest rates steady and said inflation had «moved close» to its target, while the dollar climbed late against a basket of currencies.

Investors could be on the edges of their seats this week as they wait to see if the Fed will move ahead with plans to further raise interest rates.

«Emerging market powers eager to move away from being tied to the monetary policy of the U.S. and the banking system as well as to adopt the block chain as a payment system prove willing adherents as they adjust to zero interest rates and the decrease in systematic risk.»

If things move along as anticipated, interest rates are expected to go up in late summer.

The Chinese central bank cut interest rates again in a surprise move as the nation pursues ever more aggressive measures to rev up economic activity.

But she still thinks «old money tech» — like Microsoft (Nasdaq: MSFT) and Apple (Nasdaq: AAPL)-- «that historically have been able to weather any rise in interest rates will be direct beneficiaries of this capital expenditure spending cycle that we anticipate as we move into 2015 and 2016.»

«Additionally,» it says, «these markets are continuing to draw interest from a younger crowd, as the older millennial age group is viewing property listings at a rate 1.2 times greater than the share of older millennials already living in the area, indicating strong interest from others wanting to move into these neighborhoods.»

Bay Street went from assuming the next interest - rate increase would come sometime in 2018 to betting the Bank of Canada could opt to move as early as July.

The United States may soon move to less accommodative monetary policies and higher long - term interest rates as its recovery gains ground.

This move is to be expected, as traditionally, ballooning interest rates are cause for concern and can diminish shareholder value.

The NAV (net asset value) of a bond fund will move up or down based on a number of factors such as changes in interest rates, credit quality, and currency values (for international bonds) for the different bond holdings in the fund.

In the fixed - income arena, longer - duration1 bonds tend to be more negatively impacted when interest rates move higher as compared with shorter - duration fixed income securities.

With extraordinary low interest rates and modest inflation, investing in long - term bonds to capture as much yield as possible may seem like a smart move.

As these bonds move toward maturity, the fund's overall interest rate sensitivity gradually declines since bonds with shorter maturities tend to be less sensitive to interest rate changes.

But as long as the PBoC can continue to withstand pressure to lower interest rates — and it seems that the traditional poor relations between the PBoC and the CBRC have gotten worse in recent months, perhaps in part because the PBoC seems more determined to reduce financial risk and more willing to accept lower growth as the cost — China will move towards a system that uses capital much more efficiently and productively, and much of the tremendous waste that now occurs will gradually disappear.

First, substantial direct or indirect wealth transfers from the state sector to Chinese households will unleash a surge in household consumption as household income rises (and because the interest on bank deposits is an important source of income for most middle and lower middle class households, if the authorities reduce interest rates, as struggling borrowers are demanding, China actually moves in the wrong direction).

Interest rates on government debt were, therefore, deregulated in the late 1970s and early 1980s, as the authorities moved to a tender system for issuing government securities.

Just like a thorough vetting of cabinet nominees could have foreseen the scandals that later emerged, a thorough vetting and review process for the monster tax cut legislation would have cautioned against such radical moves in the face of massive maturing supply, a trimming Fed, and a debt - strapped consumer that is seeing higher interest rates on mortgages and credit cards as a result of the spike in rates.

This is equivalent to saying that the most expansionary setting reached during the downward phase of the interest rate cycle should be maintained until such time as a move to a clearly restrictive setting is required, and only then should a move be made.

As I've also noted, a further advance in the S&P (barring other important breakdowns) would also move us to a constructive position regardless of valuations or interest rate action.

As a result, the various market interest rates that intermediaries have to pay to raise funds have, on occasion, moved independently of the cash rate.

There are objective reasons to be optimistic, including ongoing labor market improvements — underscored by falling unemployment and underemployment rates, as well as solid job growth — combined with the Federal Reserve's expectations that conditions will permit further interest rate hikes this year as it continues to move toward policy «normalization.»

Right now, as you approach full employment, the odds of having to raise interest rates are [narrowing], and so, if you want to get ahead of that and manage that risk [of having to move] late and steep, then you are going to have to start moving earlier.

Central banks such as the U.S. Federal Reserve Bank (Fed) use monetary policy tactics, including interest rate moves and increasing or decreasing the monetary supply, to try and influence the level of inflation, stimulate the economy and spur employment.

Stocks rose sharply in the United States and Europe on news the referendum plan had been scrapped, as well as a surprise move by the European Central Bank to cut interest rates.

Though the Fed is moving towards a more normal interest rate policy with a taper of stimulative bond buying, the nation has been enveloped in what is affectionately known as ZIRP (Zero interest rate policy) for many years now.

As implied above, the Fed confirmed last week that when it finally gets around to moving the FFR upward, it will do so primarily by adjusting the interest rate it pays on excess reserve balances.

The central bank didn't do anything to dispel market expectations that it will lift interest rates in June, the seventh time for such a move since the end of 2015, as it aims to normalize monetary policy.

The Aussie Dollar moved from $ 0.75781 to $ 0.75706 upon release of the figures, as focus now shifts to the RBA's interest rate decision and release of the rate statement tomorrow, disappointing inflation figures for the 1st quarter likely to leave the RBA in a holding pattern for the foreseeable future.

With interest rates on low - risk investments falling to low levels in many countries, investors have sought to maintain yields by moving into higher - risk assets such as corporate debt and emerging market debt.

I believe both these factors will probably allow the Fed to hike interest rates as early as this summer or fall, a move to merely accommodative conditions that is long overdue.

As usual, the Fed chair hedged her bets somewhat, saying she wanted to see further improvement in labor market conditions and greater confidence that inflation would move back up to 2 % in the next few years, but, based on current trends, it seems that small, incremental hikes in base interest rates are looming on the horizon.

The Euro Pound drastically moves as a result of the press conference than due to the actual interest rate decision of the ECB.

As the Federal Reserve moves to increase interest rates, we explore the benefits of dynamic cash management in a rising rate environment.

Move from a risky loan such as an interest - only mortgage or a short - term ARM to a more stable product such as a fixed - rate mortgage.

As a bond moves towards its maturity over time, its interest rate sensitivity gradually declines, eventually to zero at maturity.