Sentences with phrase «addition to interest rate risk»
In addition to interest rate risk, the value of the options embedded in callables is sensitive to changes in the slope of the yield curve.2 The value of the options is a function of forward rates, 3 which are dependent on the spot4 level of rates and spot yield spreads.5
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In addition, the lender has less time to deal with interest rate risk.
In addition to the savings resulting from a shorter term, interest rates on a 15 - year loan also are slightly lower than those for a 30 - year loan because your lender incurs less risk with a shorter loan.
And as a higher risk, you'll likely pay a higher interest rate for the life of the loan in addition to the other fees.
In addition to higher interest rates compared to banks, home equity lenders try to mitigate risk by giving a registered mortgage.
In addition, high - yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell them.
In addition to company specific risk, they are also heavily exposed to interest rate risk.
In addition to credit risks, bonds are subject to interest rate and inflation risks, and they have different maturities.
In addition, high yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell the bonds.
In addition, ELNs are subject to certain debt securities risks, such as interest rate and credit risks, as well as counterparty and liquidity risk.
REIT funds may be subject to other risks including, but not limited to, changes in real estate values or economic conditions, credit risk and interest rate fluctuations and changes in the value of the underlying property owned by the trust and defaults by borrowers.In addition to normal risks associated with equity investing, international investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, and from adverse political, social and economic instability in other nations.
In addition to the normal risks associated with fixed income securities discussed elsewhere in this SAI and the fund's prospectus (e.g., interest rate risk and default risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the fund may invest in CDOs that are subordinate to other classes; (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results; and (v) credit ratings by major credit rating agencies may be no indication of the creditworthiness of the security.
In other situations, though, the policy may have an outstanding loan, which potentially undermines the internal rate of return (as loan interest compounds) and can increase the risk that the policy lapses (which in the case of a policy with a loan can trigger a taxable event, in addition to lapsing the policy itself!).