Sentences with phrase «because of the rise in interest rates»

Because of the rise in interest rates from 3 % to 4 %, Darryl's bond has fallen in value from $ 1,000 to $ 955.

Not exact matches

This is because the province has accumulated a large public debt that given the prospects for an economic slowdown and / or rising interest rates will potentially increase fiscal pressure via debt service costs which in 2016 - 17 totaled $ 11.7 billion or just over 8 percent of total government spending.

In other words, interest rates are not rising because of inflation fears, but because rates are starting to normalize from the unsustainably low levels reached earlier this year.

In addition, a rise in long - term interest rates seems inevitable sooner or later, either because of inflation or because the Federal Reserve backs away from its easy - money policieIn addition, a rise in long - term interest rates seems inevitable sooner or later, either because of inflation or because the Federal Reserve backs away from its easy - money policiein long - term interest rates seems inevitable sooner or later, either because of inflation or because the Federal Reserve backs away from its easy - money policies.

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).

The partners do assume risk because, as owners, they share in losses as well as profits — and this year has been a tough one for Goldman and the rest of Wall Street, as rising interest rates brought spectacular trading losses.

In fact, long bonds are in the midst of a correction as we speak because interest rates have finally risen over the past couple of monthIn fact, long bonds are in the midst of a correction as we speak because interest rates have finally risen over the past couple of monthin the midst of a correction as we speak because interest rates have finally risen over the past couple of months.

I am also concerned that if interest rates rise, it will keep inventories low for a while country - wide because of «rate lock - in» with people who bought homes at lower rates.

I didn't invest a lot in some of my favorite REITs like OHI and O because I felt a rising interest rate environment would be a stronger headwind for REITs.

Because your rate is not locked in for the duration of the loan, a rising interest rate environment will force the lender to increase your mortgage rate, thus adding to your monthly payment.

Put simply, in my view, stock prices are rising not because Wall Street has thoughtfully quantified the effect of taxes, interest rates, corporate profits, or anything else.

They don't want to give the impression of a very rapid rise of interest rates because they don't think that a rapid rise in interest rates is justified given the current global environment.

Nonetheless, forecasting a significant rise in long - term interest rates has become a controversial call — mainly because it hasn't happened, despite years of economic recovery.

If you think you'll be in the home for decades, though, it can be better to lock in a low rate for the entire long life of the loan — especially because interest rates seem likely to rise.

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline.

The Bank of Canada and the federal government have long worried about Canada's housing market continuing to expand beyond fundamental levels because of the potential for a sudden and steep crash once interest rates start to rise, which would not only put many homeowners» finances in jeopardy, but could also sideswipe the economy.

Because the fund invests primarily in municipal securities, there is a risk that the value of these securities will fall if interest rates rise.

By this, I mean, if inflation kicks in, interest rates should rise, and homes will effectively be worth less because of the decreased purchasing power.

The recently published minute of the Fed's meeting last month showed some members of the policy committee have argued for raising interest rates more quickly in coming months because of strong economic growth, a robust job market and rising inflation, which last month exceeded the Fed's target of 2 percent.

As the economy reaches constraints, prices begin to rise and the Federal Reserve has to raise interest rates and, as I like to say: Every economic expansion does not die of old age; it dies because the Federal Reserve shoots it in the head,» said Minerd.

Bond values fall in a rising interest rate environment because investors sell bonds in favor of higher interest yielding bonds.

I think it'd be very interesting to see how the highest rated guys faired in the NFL before their rankings fell (or rose) because of the combine.

In a rising rate environment, interest rate risk comes to the forefront, and this is particularly true for fixed income products because of their sensitivity to interest rates, as measured by the concept of duration.

Bond ETFs are subject to interest rate risk, which is the chance that bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline.

These fixed - return investments will lose value when interest rates rise, but not enough to make a serious dent in their value, because of their short terms.

If you're still concerned about rising rates, there are short - duration bonds which tend to be less volatile because a rise in interest rates impacts the value of a two - year bond far less than that of a 20 - year bond.

As such, any sort of «operation twist» would fail, because the rise in capital levels, would blunt any advantage from over Treasury interest rates.

In a traditional bond, if interest rates rise, the price of the bond drops, because new investors can buy new bonds at a higher interest rate.

VTR is currently my top pick for my Empire portfolio mainly for the reasons you mentioned and also because they have some built - in protection against rising interest rates (cost of living adjustments / annual rent increases).

Refinancing into an ARM can save you a bundle of money early on in your loan; but because interest rates fluctuate, you risk your interest rate rising.

It actually rises in price because the higher interest rate more than offsets the impact of the price decline.

Stocks in the consumer discretionary sector also tend to perform well in rising interest rate environments because of the strong economy that caused the increase.

Other Universal Life plans can see costs rise throughout the duration of the policy because of possible changes in interest rates or costs of insurance, but a GUL policy will always be the same premium cost for each payment.

That's because interest rates are rising, which hurts the value of REITs in two ways, according to Parry.

Because interest rates and bond prices move in opposite directions; if interest rates rise, the value of a fixed income security falls.

Because low interest rates and quantitative easing — the buyback of public debt to help spur growth in the area's troubled countries — has caused high - quality stocks to rise without actually fixing the Eurozone's problems.

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline.

But I still get a steady stream of email from readers who think bonds «make no sense anymore» because they have low yields and will fall in value if interest rates rise.

For example, in a rising rate environment, loan customers may not be able to meet interest payments because of the increase in the size of the payment or a reduction in earnings.

This means that the specific currency in that country rises because of the interest rates.

This can be accomplished by investing some portion of your bond holdings in government TIPS bonds as discussed in Article 6.2, because TIPS returns are adjusted for changes in inflation and perform particularly well in situations where interest rates rise unexpectedly.

If market interest rates rise, then the price of an existing bond will likely fall because it pays a lower rate than you can earn by buying a new bond in the market.

Conversely, if market interest rates fall, then the price of an existing bond will likely rise because it pays a higher rate than you can earn by buying a new bond in the market.

Because the funds invest in short - term interest bearing securities on a constant basis, during rising interest rate environments they are able to achieve higher interest rates much more quickly than more conservative savings instruments, like savings accounts or certificates of deposit.

According to The Four Pillars of Investing, investors should keep their bond terms short because long - term bonds offer little extra return for taking on a higher interest - rate risk and long - term bonds have a larger decrease in price in a rising interest rate environment.

That's because the lower — sum payments you get with a variable rate mortgage means you make less of a dent in your principal as interest rates rise.

In today's economy, short - term bonds are preferred because they will take less of a hit if interest rates rise, says Swan.

This guarantee was a big step for the universal life insurance arena, as policies sold back in the 1980s and 1990s have had a history of implosion because of rising and declining interest rates.

Other Universal Life plans can see costs rise throughout the duration of the policy because of possible changes in interest rates or costs of insurance, but a GUL policy will always be the same premium cost for each payment.

But the biggest risk is that you could forgo thousands of dollars in potential earnings on your investment if interest rates rise, because the policies don't guarantee that you'll earn market rates.