Sentences with phrase «curves flatten»

Recall that the main idea is to extend the maturities of your bond portfolio when yield curves steepen and reduce the maturities when yield curves flatten.

-LRB-...) A recent research paper by Claudio Borio at the Bank for International Settlements argues that bank profitability is damaged in a non linear way when interest rates fall and yield curves flatten, and that applies in spades when rates go negative.

So if you were to substitute «gross billings» for revenue, the loss curve flattens out a bit.

Potenza: As the yield curve flattens, investors get less compensation for moving further out on the curve and taking on more duration risk.

As a result, the yield curve flattened and by the end of December was near inversion for the first time in a decade.

Given that I think curve flattening may continue in 2018 — I am somewhat more comfortable with duration risk than credit risk, at least in the United States.

The U.S. Treasuries yield curve flattened as the GDP data renewed bets that the Federal Reserve would continue hiking rates to keep inflation in check.

And QE is surely already hitting diminishing returns with the yield curve flattening and markets functioning without the illiquidity premia of the early recovery period.

Accordingly, he maintains his conviction on curve flattening going into 2018.

While we agree with Alankar that bringing back bond market term premium would restore balance to the financial system, the ineffectiveness of using rate hikes to push up term premium is evident by the on - going curve flattening

Prolonged curve flattening from the aforementioned easy financial conditions (low long - term rates) despite rising short - term rates would steadily increase institutions» vulnerability to potential balance sheet shocks, as investors continue to add low quality and illiquid assets to «enhance returns.»

Thus the yield curve flattens, as the pace of rising two - year yields has been greater than that of 10 - year yields.

The yield curve flattened as 2 - year note yields rose in response to the Federal Reserve raising short - term interest rates while 10 - year note yields were unchanged.

The reference to «Op Twist by another name & method» has to do with the curve flattening implications highlighted in this post on Nov. 20.

When the yield curve flattens, it usually reflects expectations of lower short - term interest rates in the future, a signal of weaker economic growth or lower inflation.

Indicators of a U.S. recession are rising, namely yield curve flattening and tightening lending standards...... but these...

This difference in the speed of ascent has led to the curve flattening.

At some point the growth curve flattens out, and the company's slower earnings growth takes an axe to it's optimistic P / E.

Not only are retention rates more than 50 percent higher with proper eLearning, but the learning curve flattens.

As the yield curve flattens, I would expect this spread to continue to narrow.

Global yield curves flattened in 2017, but we see several reasons for this trend to halt — and perhaps even to reverse in 2018.

For those too young to remember, from 2004 to 2007, fixed income markets witnessed a period of low volatility, even as central banks were raising rates and the yield curve flattened.

In 2001 when the smoothed yield curve flattened, but didn't invert, World EPS again declined by more than 10 percent.

With no cut, the dollar rises, implied inflation falls, the yield curve flattens and the stock market falls, at least temporarily.

Thus the yield curve flattens, as the pace of rising two - year yields has been greater than that of 10 - year yields.

When you start to see the yield curve flatten or even invert, meaning short - term rates become equal to or higher than long - term rates, and the line either becomes flat or sloped lower from left to right, then that usually signals trouble ahead in terms of a recession and lower market prices.

This means that the U.S. stock market is going up while the yield curve flattens!

The long end of the curve flattened, because inflation expectations were under control.

«If short - term yields rise while long - term yields fall, a short position in two - year yields and a long position in 10 - year yields is likely to profit, if the curve flattens.»

As the yield curve flattened to the lowest in more than a decade, the fallout spread beyond the realms of high finance and central banking.

Not a superhero move, the quiz tells you, but a trading strategy aimed to profit when a yield curve flattens.

Conversely, if you hold long maturity securities, you could benefit if the curve flattens, bringing down longer - term yields and boosting long bond prices.

Since June 27, 2017, yields across the curve have continued to rise (see Exhibit 2) and the curve flattening has ended.

As I noted at RealMoney during 2004 - 2006, the yield curve flattened the hard way, with the Fed raising rates, and the long end falling.

If the market believes that the FOMC has set the fed funds rate too high, the opposite happens, and long - term interest rates decrease relative to short - term interest rates — the yield curve flattens.

When the yield curve flattens, this mismatch causes net interest revenue to diminish.

As the U.S. yield curve flattened to just 45 bps (2s - 10s) last week, we dug out something I wrote back in 2007, in the early days of this blog.

But what does curve flattening mean for returns?

The Treasury curve flattened in all cases, however in the 1994 and 1999 cycles, the outset of the cycle caught markets by surprise; adjustment was much quicker and the curve didn't flatten sufficiently, with longer - term bonds underperforming in price terms.

This is precisely what has been occurring all year in 2014, with the yield curve flattening.

Bonds in general had an uneventful June but we just saw longer - term bonds go up in price (yields down) while shorter - term bond prices fell as the yield curve flattened out.

As a result, the yield curve flattened and by the end of December was near inversion for the first time in a decade.

Interest Rates & ETFs, ETFs & Stock Valuations, Yield Curve Flattening & ETFs, ETFs & Recessions, Consumer Staples ETFs, Consumer Discretionary ETFs

The Canadian yield curve flattened by a similar amount.

That's part of what I would tell you to watch — if the yield curve flattens quickly, the FOMC will not do so much, most likely.

This leads to the second scenario identified by Straus» and his team: «Contra - indicative yield curve flattening and / or inversion.»

Interest Rates & ETFs, ETFs & Stock Valuations, Yield Curve Flattening & ETFs, ETFs & Recessions, Consumer Staples ETFs, Consumer Discretionary ETFs Click here to listen to the show

Once this curve flattens out, then it could be claimed that the smaller projects are competing with the large ones more directly.

Not exact matches

«The spread between the 2 - year and 10 - year Treasury is now the tightest it's been since 2007,» said Rob Morgan, chief investment officer at Sethi: «The flattening yield curve in 2007 was a harbinger of the Great Recession of 2008.

Those rate hikes, they said, are in and of themselves acting to flatten the yield curve.