Generally, variable annuities charge explicit fees, while fixed annuities tend to embed
their costs in the interest rate or income payout amount.
In effect, this would steer them toward financing
all costs in the interest rate of the mortgage loan causing consumers to pay interest on these costs for the life of the loan.
Next, I figured out out how much this fall from grace might
cost me in interest rate terms.
Not exact matches
Pick your poison: plunging energy
costs taking a bite out of stocks
in related industries, an erratic Canadian dollar, Greece,
interest rate uncertainty.
Important factors that could cause actual results to differ materially from those reflected
in such forward - looking statements and that should be considered
in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance,
cost, and revenue under our contracts, including our ability to achieve certain
cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the
cost of accommodating, announced increases
in the build
rates of certain aircraft; 6) the effect on aircraft demand and build
rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest
in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions
in the industries and markets
in which we operate
in the U.S. and globally and any changes therein, including fluctuations
in foreign currency exchange
rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain
in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount
rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both
in the U.S. and abroad; 20) the effect of changes
in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction
in our credit
ratings; 22) our dependence on our suppliers, as well as the
cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of
interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher
interest payments should
interest rates increase substantially; 27) the effectiveness of any
interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other
cost savings; 32) our ability to consummate our announced acquisition of Asco
in a timely matter while avoiding any unexpected
costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations
in foreign current exchange
rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
As well as their impact on the currency markets, rising
interest rates weigh on gold
in their own right, as they increase the opportunity
cost of holding non-yielding bullion.
This suggests a return to the normalized
rate of 5.5 %, which would result
in Ontario's annual
interest costs moving from $ 12 billion to $ 13 billion and climbing to $ 17 billion once all debt is refinanced.
And Wells Fargo's still near - zero average deposit
cost, even after the
interest rate increases
in the market, shows just how well this equation is working.
In many cases, acceleration should lower their costs, as nominal interest rates will likely be higher two years from now than they are today, and idle construction crews in Alberta are relatively abundan
In many cases, acceleration should lower their
costs, as nominal
interest rates will likely be higher two years from now than they are today, and idle construction crews
in Alberta are relatively abundan
in Alberta are relatively abundant.
Given the collapse of commodity markets was the trigger for the shock
interest -
rate cut
in January, it is reasonable to speculate that continued weakness could prompt the central bank to lower borrowing
costs a third time
in 2015.
At a 12 percent
interest rate, carrying an unpaid $ 10,000
in bills will
cost you $ 120 per month.
There could be mergers and acquisitions
in the German banking sector to offset the
costs of low
interest rates, a member of the ECB told CNBC on Monday.
«As
interest rates begin to rise over time, financial institutions will find it necessary to pass along their increased
costs in the overall
cost of credit to small business and commercial customers.»
Following comments from Fed Chair Jerome Powell on Tuesday, markets have started to price
in a higher
interest rate path
in the U.S., which is set to ultimately impact firms»
costs.
The bank,
in turn, will pass on those
costs to households
in the form of higher
interest rates.
Following comments from Powell on Tuesday, markets have started to price
in a higher
interest rate path
in the U.S., which is set to ultimately impact firms»
costs.
To counteract those forces, the Bank of Canada could have cut
interest rates, opening up a gap between the
cost of money
in Canada and the United States, making U.S. assets relatively more attractive to fixed - income investors.
Those laws include state usury laws that limit
interest rates and the Truth
in Lending Act, which requires lenders to provide certain disclosures on total loan
cost, said Stuart Rossman, director of litigation at the National Consumer Law Center.
The agency commissioned a survey that found 720,000 families would struggle to make payments on their home - equity loans if
interest rates rose by a mere 0.25 percent, and almost one million would be
in trouble if borrowing
costs rose a full percentage point.
WASHINGTON, May 2 - The Federal Reserve held
interest rates steady on Wednesday and expressed confidence that a recent rise
in inflation to near the U.S. central bank's target would be sustained, leaving it on track to raise borrowing
costs in June.
Regulating the money supply through changes
in interest rates — i.e. monetary policy — would be much more direct, which could mean it's more effective and
cost - efficient.
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions
in the industries and markets
in which United Technologies and Rockwell Collins operate
in the U.S. and globally and any changes therein, including financial market conditions, fluctuations
in commodity prices,
interest rates and foreign currency exchange
rates, levels of end market demand
in construction and
in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges
in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies
in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including
in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including
in connection with the proposed acquisition of Rockwell; (7) delays and disruption
in delivery of materials and services from suppliers; (8) company and customer - directed
cost reduction efforts and restructuring
costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes
in political conditions
in the U.S. and other countries
in which United Technologies and Rockwell Collins operate, including the effect of changes
in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange
rates in the near term and beyond; (16) the effect of changes
in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations
in the U.S. and other countries
in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result
in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including
in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted
in their operation of their businesses while the merger agreement is
in effect; (21) risks relating to the value of the United Technologies» shares to be issued
in connection with the pending Rockwell acquisition, significant merger
costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
«That alone will result
in lower
interest costs, an expense that will climb as central banks will be obligated to increase
rates to combat inflation.»
The Fed's announcement assuaged investors» concerns about the possibility of accelerated
interest -
rate increases as rising materials
costs for companies have signaled a pickup
in inflation.
According to Aitken, borro's
rates — 2.99 to 3.99 percent
in monthly
interest, plus 5 to 7 percent
in setup fees — are often lower than the
cost associated with selling personal assets by auction.
As the
cost of fitness trackers, smartwatches, and other healthcare wearables — such as chest strap heart
rate monitors — decreases, these devices will become available to new audiences
interested in monitoring their health.
If there are
interest rate increases
in successive years, you will lose the
cost advantage that currently exists.
The MPC launched the Term Funding Scheme to make sure that the lower levels of
interest rates now set by the Bank of England are reflected
in the
costs commercial banks charge households and companies to borrow funds.
The rest of the new rules are set to go into effect
in February, including regulations on
interest -
rate increases and disclosure rules that more clearly spell out the
cost of financing using credit cards.
The Bank of Canada, for one, has carefully assessed the economic risks of consumer debt
in order to determine how quickly it can raise
interest rates without piling on too many debt - servicing
costs for over-stretched households.
Retirees are facing problems very similar to the average pension fund:
In addition to not having enough cash contributions to keep up with the
costs of aging, their returns have been hurt by
interest rates that have been too low for too long.
Because they tend to have lower overhead
costs, online banks are
in a better position to offer more favorable
interest rates on savings.
You can do this before the
interest rates start to kick
in, so it doesn't
cost you anything to do it.
Then,
in the early 1990s, the Bank of Canada began inflation targeting, which brought down
interest rates and made the carrying
costs of debt far more manageable.
Annualized GAAP
interest expense based upon $ 780 million principal outstanding and using the LIBOR based
interest rate spread
in effect on April 29, 2016, was $ 44 million and included $ 5 million
in debt issuance
cost.
Gold is highly sensitive to rising U.S.
interest rates, which increase the opportunity
cost of holding non-yielding bullion while boosting the dollar,
in which it is priced.
I see no evidence that most Canadians actually pay attention to Carney's sporadic announcements; the available evidence strongly suggests they're influenced more by his setting of the overnight
rate, which goes a long way
in determining the
interest costs on their mortgages and lines of credit.
With 1 percent as the
cost of funds for a $ 10,000 cash advance, assume an investor invested this borrowed amount
in a one - year certificate of deposit that carries an
interest rate of 3 percent.
In short, credit availability and
cost are not issues and haven't been for many years, even with the Federal Reserve raising
interest rates.
If
rates are rising, borrowers typically seek to lock
in lower
rates of
interest to save on
interest rate costs over time.
This is because the province has accumulated a large public debt that given the prospects for an economic slowdown and / or rising
interest rates will potentially increase fiscal pressure via debt service
costs which
in 2016 - 17 totaled $ 11.7 billion or just over 8 percent of total government spending.
Real
interest rates, which subtract inflation from the nominal
rate to show the true
cost of borrowing, soared as high as 8 %
in the aftermath, as demand for goods and services evaporated and prices tumbled.
The amount of debt that is projected under the extended baseline would reduce national saving and income
in the long term; increase the government's
interest costs, putting more pressure on the rest of the budget; limit lawmakers» ability to respond to unforeseen events; and increase the likelihood of a fiscal crisis, an occurrence
in which investors become unwilling to finance a government's borrowing unless they are compensated with very high
interest rates.
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.
In addition, low
interest rates minimize the
cost to the United States of our substantial negative net debt position.
The impact of mortgage
interest rates can be further assessed by Figure 3, which measures the evolution of the mortgage to cash
cost ratio of purchasing a residential property
in terms of labour time.
«This issuance reflects OnDeck's most successful securitization issuance to date, with strong investor
interest resulting
in broad participation by existing and new institutional investors, expected improvement
in credit
ratings, and a significant reduction
in cost of funds despite a rising
interest rate environment, and is a testament to the strength of OnDeck's business model.»
The private sector often demands
rates of return far greater than public sector borrowing
costs, especially
in the current low
interest rate environment.
The back - story is now familiar: the lowest
interest rates since the 1960s that prevailed
in the aftermath of 9 - 11 reduced the
cost of holding a mortgage, and led many people to buy into the real estate market.
After all, when a central bank influences the
cost of financing through changes
in the policy
interest rate, its actions affect the economy by changing asset prices, encouraging or discouraging risk taking, and influencing credit flows.