Sentences with phrase «changes in credit spread»

For spread products such as corporate bonds, their total return is also sensitive to changes in credit spread.

Using that sector as an example, the change in credit spreads of the S&P / ISDA U.S. Financial 30 Credit Spread Index has dropped significantly over the last 16 months.

As monthly changes in credit spreads tend to be correlated, i.e. rising spreads in one month are often followed by a further rise the next month, spread widening often precedes equity market corrections.

The performance of credit default swaps, like that of corporate bonds, is closely related to changes in credit spreads.

The performance of CDS, like that of corporate bonds, is closely related to changes in credit spreads.

During 2007, the value of the Company's credit derivative contracts were affected predominantly by changes in credit spreads of the underlying reference obligations» collateral and ratings downgrades of securities backing collateralized debt obligations.

Not exact matches

Results for the current quarter included positive revenue of $ 3.4 billion, or $ 1.12 per diluted share, compared with negative revenue of $ 731 million a year ago related to changes in Morgan Stanley's debt - related credit spreads and other credit factors (Debt Valuation Adjustment, DVA).2, 3

If annual point - to - point with a spread is used, the interest credited can be reduced to zero even if the percentage of change in index value is positive.

By contrast, in Australia there has been no noticeable widening of risk spreads in the corporate bond market over the past year, and credit has been easily available from intermediaries, with no reports of significant changes in banks» lending attitudes.

U.S. investment: There would be no change in overall U.S. investment except to the extent that tightening credit spreads would cause a small rise in risky U.S. investments.

In doing so, investors are taking on a range of risks such as exposure to changes in the shape of the yield curve, credit spreads or exchange rateIn doing so, investors are taking on a range of risks such as exposure to changes in the shape of the yield curve, credit spreads or exchange ratein the shape of the yield curve, credit spreads or exchange rates.

This understanding allowed policymakers to project changes in financial conditions (short - term borrowing cost, long - term credit spreads, equity valuation, and exchange rate), which would elicit reactions from the real economy.

Goldman Sachs Financial Conditions Index tracks changes in interest rates, credit spreads, equity prices, and the value of the US dollar.

Examples of these risks, uncertainties and other factors include, but are not limited to the impact of: adverse general economic and related factors, such as fluctuating or increasing levels of unemployment, underemployment and the volatility of fuel prices, declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; adverse events impacting the security of travel, such as terrorist acts, armed conflict and threats thereof, acts of piracy, and other international events; the risks and increased costs associated with operating internationally; our expansion into and investments in new markets; breaches in data security or other disturbances to our information technology and other networks; the spread of epidemics and viral outbreaks; adverse incidents involving cruise ships; changes in fuel prices and / or other cruise operating costs; any impairment of our tradenames or goodwill; our hedging strategies; our inability to obtain adequate insurance coverage; our substantial indebtedness, including the ability to raise additional capital to fund our operations, and to generate the necessary amount of cash to service our existing debt; restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business; the significant portion of our assets pledged as collateral under our existing debt agreements and the ability of our creditors to accelerate the repayment of our indebtedness; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; fluctuations in foreign currency exchange rates; overcapacity in key markets or globally; our inability to recruit or retain qualified personnel or the loss of key personnel; future changes relating to how external distribution channels sell and market our cruises; our reliance on third parties to provide hotel management services to certain ships and certain other services; delays in our shipbuilding program and ship repairs, maintenance and refurbishments; future increases in the price of, or major changes or reduction in, commercial airline services; seasonal variations in passenger fare rates and occupancy levels at different times of the year; our ability to keep pace with developments in technology; amendments to our collective bargaining agreements for crew members and other employee relation issues; the continued availability of attractive port destinations; pending or threatened litigation, investigations and enforcement actions; changes involving the tax and environmental regulatory regimes in which we operate; and other factors set forth under «Risk Factors» in our most recently filed Annual Report on Form 10 - K and subsequent filings by the Company with the Securities and Exchange Commission.

This change in credit ratings helps our debt spread calculation to better reflect the real market environment for borrowing in a number of ways:

Data about the credit - recovery industry are too incomplete, and change of all kinds too omnipresent in K — 12 education, to posit a definite link between the spread of online courses and increased graduation rates nationally.

Looking back over the past 60 years, changes of one standard deviation or more, roughly 60 bps, in credit spreads raise the odds of a 5 % or bigger correction from 8.5 % to more than 16 %.

The specific profile of yield behavior (such as changes in the yield curve or credit spreads) is also an important factor.

The piece suggests that CDS spreads are better and more rapid indicators of change in credit quality than bond ratings.

The basis point change presented in the preceding table, however, represents a fixed basis point change in reference obligation credit spreads across all credit quality rating categories and asset classes and, therefore, the actual impact of spread changes would vary from this presentation depending on the credit rating and distribution across asset classes, both of which will adjust over time depending on new business written and runoff of the existing portfolio.

In general, MBIA's market risk relates to changes in the value of financial instruments that arise from adverse movements in factors such as interest rates, credit spreads and foreign exchange rateIn general, MBIA's market risk relates to changes in the value of financial instruments that arise from adverse movements in factors such as interest rates, credit spreads and foreign exchange ratein the value of financial instruments that arise from adverse movements in factors such as interest rates, credit spreads and foreign exchange ratein factors such as interest rates, credit spreads and foreign exchange rates.

In examining the subparts of the S&P 500 ® Bond Index, we can take a deeper look at how credit spreads have changed for AA - and BB - rated corporate bonds issued by constituents of the S&P 500.

The purchase of spread options will be used to protect a Fund against adverse changes in prevailing credit quality spreads, i.e., the yield spread between high quality and lower quality securities.

Spread risk can be related to investment risk, such as when a price or yield changes as a result of a change in credit rating.

Credit spread options are a type of derivative where one party transfers credit risk to another party, usually in exchange for a promise to make cash payments if the credit spread chCredit spread options are a type of derivative where one party transfers credit risk to another party, usually in exchange for a promise to make cash payments if the credit spread chcredit risk to another party, usually in exchange for a promise to make cash payments if the credit spread chcredit spread changes.

Yes, they have the potential to: i) benefit massively, at least in the short - term, from a spike / step - change in volatility, and / or a large market decline, and ii) possibly benefit longer - term from an accompanying spike or sustained increase in interest rates (and / or credit spreads)-- historically, a primary driver of broker profitability was interest earned on client balances, which has now been almost eliminated.

CR01: Credit Sensitivity — Credit Default Swap [CDS] price change for 1bp shift in Credit par spread — same as DV01, but applied to CDS instead of a bond.