Sentences with phrase «carry interest rate risk»

Although government bonds might have very little credit risk, mainly from issuer default, they still carry interest rate risk, meaning bond prices will fall as interest rates rise.

That being said, they do carry interest rate risk, and prices may go down when there are unexpected changes in rates.

Disadvantages: Like fixed rate mortgages, ARMs also carry interest rate risk.

In general, the bond market is volatile, and fixed - income securities carry interest rate risk.

Not exact matches

Currency risk in a carry trade is seldom hedged, because hedging would either impose an additional cost, or negate the positive interest rate differential if currency forwards are used.

With Powell set to carry out the Fed's process of raising short - term interest rates and gradually unwinding a $ 4.2 trillion portfolio of mortgage and Treasury securities, fixed - income investors are contending with big risks.

Mortgage - and other asset - backed investments carry the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise.

These risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature of the restaurant industry; factors impacting our ability to drive sales growth; the impact of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack of suitable new restaurant locations; higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and marketing costs; a failure to develop and recruit effective leaders; the price and availability of key food products and utilities; shortages or interruptions in the delivery of food and other products; volatility in the market value of derivatives; general macroeconomic factors, including unemployment and interest rates; disruptions in the financial markets; risk of doing business with franchisees and vendors in foreign markets; failure to protect our service marks or other intellectual property; a possible impairment in the carrying value of our goodwill or other intangible assets; a failure of our internal controls over financial reporting or changes in accounting standards; and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.

This is evident in a number of developments, including: increased demand for higher - risk assets; the increase in «carry trades» — a form of gearing where funds are borrowed short - term at low interest rates and invested in higher - yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).

«Borrowings are from financing subsidiaries of ExxonMobil Corporation and carry interest rates based directly on industry standard benchmarks including a risk - based spread.

It is likely that you will be asked to choose a fund based on risk factors, with each carrying different rates of interest.

The lower risk associated with a secured loan often results in a lower interest rate than an unsecured personal loan would carry.

Risks to the policy outlook Carry trade and interest rates Risk of a premature QQE exit within this financial year

Therefore, AGND does indeed carry significant interest - rate risk, but in the opposite direction from the norm.

The fund carries moderate interest - rate risk from bonds with a broad range of maturities.

Mortgage - backed investments carry the risk that they may increase in value when interest rates decline and decline in value when interest rates rise.

The risk involved for the lender is a lot higher than with secured loans and that is the main reason why unsecured loans carry higher interest rates.

Payday loans carry a high interest rate; this is due to the fact that there is a very high risk involved for the lender.

Unsecured Business loans carry higher interest rates than secured business loans because there is a higher risk for the lender.

Currency - related carry trading execution primarily relies on correctly timing interest rate cycles and having the backdrop of a low volatility, «risk - on» environment

Rest assured that we will help you find a Guaranteed Investment Certificate that's secure, has the least risk and carries high interest rates.

In addition, bond funds investing in longer - term securities carry higher levels of interest rate risk.

But I do not like bonds and feel they carry high risk without adequate reward in today's low interest rate environment.

Because the bonds carry less risk, they offer lower interest rates than unsecured bonds.

A bad credit mortgage is a high - risk investment, which obviously carries a higher interest rate than other types.

That is why credit card companies may likely charge you high interest rate in order to cater for the additional risk they may need to carry.

Because they have a high duration, long - term bonds carry significant interest rate risk.

While bonds are often referred to as «fixed - income» securities they carry risks such as interest rate risk (the movement of interest rates that can positively or negatively affect the value of the bond at redemption) and default risk (the risk that the bond issuer will go bankrupt or become unable to repay the loan).

Generally second mortgages carry more risk to lenders, and have a higher interest rate than first mortgages.

Interest rates are generally higher, because a commercial mortgage carries a higher level of risk for the lender.

The fact is that not all mortgage companies wish to carry the risk of vacation home loans and investment mortgages so the interest rates are much higher than companies that consider 2nd home financing a niche.

Investing in Commodities, Real Estate Investment Trusts (REITs), and International or Global investments carries certain risks such as price volatility, currency risk, market risk, interest rate risk and credit risk.

These loans, like jumbo loans are considered much higher risk and carry higher interest rates and penalties.

Munis generally also carry less interest rate risk overall.

Short - term bonds command a lower interest rate than long - term bonds (usually) because of their quicker maturity, but short - term bonds carry risk just like long - term bonds (though the interest rate risk is lower, sometimes quite a bit lower, than for long - term bonds).

They typically carry more credit risk than those issued by Fannie Mae or Freddie Mac, which often results in higher interest rates.

A sizable body of literature discusses the risks associated with carry strategies and the failure of spot prices to converge, such as the failure of uncovered interest rate parity in currency markets beginning with Fama (1984) and Hodrick (1987); the failure of the expectations hypothesis in bond markets (Fama and Bliss, 1987); and the persistence of contango and backwardation in commodity markets, as far back as Keynes (1930).

In a rising interest rate scenario, these companies should have offered higher rates in order to compensate higher risk they carry and also to make up for higher expected rates in future.

Bond prices are impacted by interest rate changes — bonds with higher durations carry more risk above and have higher price volatility than bonds with lower durations

However, like mutual funds, they carry similar market risks to their underlying securities so they'll be subject to forces such as interest rate changes, geopolitics and industry trends.

Secured personal loan terms typically carry more favorable interest rates, primarily because the creditor is not taking the same level of risk as they would with an unsecured loan.

Bonds carry too much interest rate risk after a 30 year bull market that has brought yields down to record lows.

Subprime loans carry more risk to lenders which can lead to higher interest rates for borrowers.

In general, fixed Income ETFs carry risks similar to those of bonds, including interest rate risk (as interest rates rise bond prices usually fall, and vice versa), issuer or counterparty default risk, issuer credit risk, inflation risk and call risk.

It is important to understand that these products carry very high interest rates and thus, if you pay only the minimum payments on your balances, not only you will spend a lot of money on interests but you will risk accumulating too much debt and endangering your finances.

Because the VA backs each VA Loan with a guaranty, financial institutions carry less risk and can offer interest rates that are typically 0.5 to 1 percent lower than conventional interest rates.

Unsecured debt represents a higher risk, which is why it carries higher interest rates and other finance charges.

ARMs carry risks in periods of rising interest rates, but can be cheaper over a longer term if interest rates decline.

Mortgage backed investments carry the risk that they may increase in value when interest rates decline and decline in value when interest rates rise.

With the long time horizon and fixed dividend amount, perpetual shares carry the highest interest rate risk amongst all preferred types.