Sentences with phrase «as a low interest rate environment»

Other factors, such as a low interest rate environment could also trigger the need for a policy review.

Not exact matches

Unicorns were created in the aftermath of the financial crisis, when the low interest rate environment prompted investments in riskier assets, such as the stock of privately held companies.

«As long as we're in this very low interest rate environment, I just don't see a major problem,» says GuatierAs long as we're in this very low interest rate environment, I just don't see a major problem,» says Guatieras we're in this very low interest rate environment, I just don't see a major problem,» says Guatieri.

Financial institutions in advanced economies face a number of cyclical and structural challenges and need to adapt to low growth and low interest rates, as well as to an evolving market and regulatory environment.

If I can achieve a 8 % annual return with relatively low risk, I am allocating as much capital as possible to such an investment given our low interest rate environment.

In the mad scramble for loan creation during the final phase of the Housing Bubble, the government created an environment of essentially free money by allowing the big agencies, Fannie Mae and Freddie Mac (or Phony and Fraudie, as I often affectionately refer to them), to securitize loans to the bottom of the barrel risks with crazy terms like no money down and incredibly low «teaser» interest rates.

The current environment of low interest rates and elevated equity valuations has many investors in a tight spot, as return expectations are lower than usual for both bonds and domestic stocks.

The low interest rate environment may also have encouraged a shift in investments towards hedge funds as, in the past, hedge funds have achieved higher average returns than traditionally managed investments, albeit in exchange for greater risk.

If you're not planning to be in the home long, an ARM could serve you best in today's low - interest - rate environment, as it will lock in low rates for a few years.

Going as far back as 75 years, I can not recall a single instance of the stock market and economy crashing during a low interest rate environment like we are in now.

Stock markets were broadly lower for a second day, with financial shares logging sizable declines as investors assessed the rising interest - rate environment.

The combination of low levels of ES funds and the cash rate remaining close to its target suggests a couple of conclusions: first, the market players involved with RTGS have adapted well to operating in the new environment; and second, participants have reasonable confidence about the availability of cash near the interest rate announced by the Reserve Bank as its policy target.

As many fixed income investors have discovered in the low interest rate environment of the past several years, opportunities to achieve better levels of income exist, but thoughtful consideration of the potentially higher risks associated with the hunt for better yield is essential.

As mentioned above, if an investor seeking additional income sources within their portfolio during such a low - interest - rate environment, it may be appropriate to include high - yield exposures such as the following ETFAs mentioned above, if an investor seeking additional income sources within their portfolio during such a low - interest - rate environment, it may be appropriate to include high - yield exposures such as the following ETFas the following ETFs:

This obviously is quite straight forward as investors yield chase in an environment where interest rates are at the lowest of the low.

Bearish investor sentiment, however, quickly abated as positive U.S. economic data, combined with broader acceptance of a «lower for longer» interest rate environment, drove stock returns higher.

This also means that triple net lease REITs, which are often used by yield - hungry investors in a low interest rate environment as bond alternatives, can be thought of as very long - term duration bond proxies.

As I write in a recent paper, «Brave New World: Investing for Longer Retirements,» this rule is likely to prove less effective in today's environment of longer lives, fewer traditional pensions and low interest rates, where many people haven't saved enough to finance a multi-decade retirement.

As I write in a recent paper, «Brave New World: Investing for Longer Retirements,» this rule is likely to prove less effective in today's environment of longer lives, fewer traditional pensions and low interest rates, where many people haven't saved enough to finance a multi-decade retirement.

In a sustained low interest rate environment such as the United States, unemployment rates decline and businesses have access to loan funds at reasonable rates.

Auto loan rates are at historically low levels as a result of an overall low interest rate environment.

One of the oldest tricks in the game is to offer a high current yield, where the yield can get curtailed through early prepayment (typically in low interest rate environments), or some negative event that forces the security to change its form, such as when a stock price falls with reverse convertibles.

As a result of the low interest rate environment, bonds today are primarily a portfolio diversifier.

This means the 52bp pick up in yield that one gets today would result in a lower total return later, as bond prices would decrease in a rising interest rate environment.

Relatively low but not surprising given an 8 year bull market that has increased stock prices, as well as the current low interest rate environment (which means that companies don't need to pay high dividends to attract investors).

Consider a low interest rate environment as the low - hanging fruit among refinancing scenarios.

In the current lending environment, with interest rates at an all - time low, now is an ideal time for you to refinance your mortgage and possibly save thousands of dollars per year, enabling you to pay more money per month towards the principal on your mortgage as opposed to the interest — which, in turn, can help build equity quicker.

Dividend focused strategies as well as strategies offering exposure to alternative income sources have become popular and proliferated over the past few years given the low interest rate environment.

2017 was the sixth consecutive year of record U.S. corporate bond issuances, as companies continued to take advantage of the accommodative environment created by low interest rates and strong investor demand.

In a low - interest rate environment, certain investments may not perform as well as others.

In all regions, the duration factor reveals positive exposure to interest rate risk; investors seeking income and safety may see stocks with high dividend yields and low volatility as an attractive alternative to fixed - income securities in a low - rate environment.

In today's financial environment, graduates may want to take advantage of lower interest rates while paying off their debt as soon as possible, or they may prefer to free up extra cash by choosing an extended term with lower payments.

As the table makes clear, even the lowest interest rate environment will cause law student debt to increase in meaningful ways.

Preferred shares have become popular in today's low interest rate environment as investors reach for higher yield.

Also given the low growth, low inflation and low interest rate environment and the somewhat above average valuation numbers, one has to expect lower nominal returns from equities as compared to the past.

And given a low - interest rate environment, the principal protection isn't worth as much as it might otherwise be.

Particularly in this global low - to - negative interest rate environment, Asian bonds are attractive, as the theme of yield hunting continues.

In low interest - rate environments, investors face risk to principal as rates gradually rise and principal declines.

Additionally, in this low - interest - rate environment, the dividend yield offered by dividend - paying companies is substantially higher than rates available to investors in most fixed - income investments such as government bonds.

As you know, John, you can't make much money investing without taking on some degree of risk — especially in this low - interest - rate environment.

We are all well aware of today's low, or as I call it the «new,» interest rate environment.

The firm says the fund will serve as a complement to its existing multi-sector lineup, and is designed to address the challenges of the current market environment including low interest rates, volatility potential, stretched valuations, and impaired market liquidity.

Central banks, such as the Federal Reserve, were all lowering interest rates and working together to restore stability to the market, which created an environment in which stocks were moving together, with little difference between winners and losers, Fidelity's Hogan said.

Learn more about the covered call options strategy as our TD Expert highlights some basic risk and rewards involved in the strategy and why investors may consider using it in a low interest rate environment.

Total Consumer Debt as % of Discretionary Income (Send me email for the chart) The problem with the «consumer debt as percentage of discretionary income» measure (the above chart) is that it ignores the true cost of debt since higher debt levels in a low - interest - rate environment may not result in a high debt service burden (interest and principal payments) on the consumer.

In recent years, Canada's long - running low interest rate environment has bolstered the popularity of real estate investing as people search for alternative investments that promise greater returns than they might otherwise be able to achieve through conventional investments like stocks and bonds.

«Although this positive trend may be short - lived if the general economy falters, one might ask whether consumers are increasingly seeing the current environment as a unique opportunity to buy a home while home prices remain depressed, rental costs are increasing, and interest rates are near historic lows.»

«We've also had unsolicited offers for large portions of our leased properties as institutional investors continue to ferret out yield opportunities in a low - interest - rate environment,» Bloemker said in the letter.

Synopsis: Interest rates remain at historic lows, and mortgage credit is becoming more easily available as banks gain confidence in this much - improved credit environment.

«Values are continuing to rise at a steady, consistent pace and new inventory is slowly coming to market as more and more long - time owners are coming off the fence to sell in an environment where interest rates are at all - time lows, demand is unrelenting and looming tax increases are on the horizon,» said Ken Uranowitz, managing director.