Sentences with phrase «change in market interest rates»

When interest payments on variable - rate liability change based on changes in market interest rates, the value of the variable - rate liability can remain constant.
As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.
No bonds of any kind can reach such a level of growth as any price appreciation in bonds depends on the few single - digit changes in market interest rates.
Interest rate risk is the uncertainty regarding the ending wealth value of the portfolio due to changes in market interest rates between time of purchase and the investor's horizon date.
Therefore, we would not expect our operating results or cash flows to be affected to any significant degree by a sudden change in market interest rates on our securities portfolio.
As we've discussed before, the duration of a bond fund is an important indicator of its risk level because the longer the duration, the more the fund's price will fluctuate as a result of changes in market interest rates.
Such funds invest in debt instruments such as Certificate of deposit, corporate and / or government papers and are less impacted with changes in market interest rates.
A cash flow hedge lets a business hedge the uncertainty of cash outflow in interest payments on its variable - rate liability against changes in market interest rates by swapping to a fixed - rate liability.
A bond's price in the secondary market fluctuates daily around its face value to reflect changes in market interest rates.
Because credit and default risk are the dominant drivers of valuations of high yield bonds, changes in market interest rates are relatively less important.
Changes in market interest rates.
It's interpretation is roughly: «duration equals the expected percent change in value of the security that will result from a 1 % change in the market interest rates».
However, due to their short duration, any change in market interest rates would have a relatively small market risk effect on T - bill prices.
As a bondholder, the most important concept to be aware of is that the price of a bond has an inverse relationship to changes in the market interest rates.
Bond prices fluctuate daily in response to both changes in market interest rates and the credit quality of the underlying issuer.
Interest rate risk is the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates.
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