For every 1 % interest rates move, the price of this bond could move approximately $ 4,000 up or down, depending upon
the direction interest rates moved.
Depending on
the direction interest rates move, the MVA may increase or decrease benefits payable under the Contract.
Not exact matches
But if you think
interest rates are going to stay low, it's a
move in the wrong
direction.
he general trend was for average household debt to
move in the opposite
direction of the
interest rate,» Statscan noted.
«The general trend was for average household debt to
move in the opposite
direction of the
interest rate,» Statscan noted.
Bond prices, and thus a bond fund's share price, generally
move in the opposite
direction of
interest rates.
First, substantial direct or indirect wealth transfers from the state sector to Chinese households will unleash a surge in household consumption as household income rises (and because the
interest on bank deposits is an important source of income for most middle and lower middle class households, if the authorities reduce
interest rates, as struggling borrowers are demanding, China actually
moves in the wrong
direction).
Given that
interest rates characteristically rise quite early in the recovery process, there will inevitably be a longish period in which
interest rates and activity are
moving in the same
direction.
For fixed income ETFs, bond prices, and thus an ETF's unit price, generally
move in the opposite
direction of
interest rates.
For fixed income ETFs, bond prices, and thus an ETF's unit price, generally
moves in the opposite
direction of
interest rates.
In the U.S., the Federal Reserve (the Fed) is
moving toward a more «normalized» stance on
interest rates, while other countries and regions are heading in the opposite
direction.
By forward guidance I mean more than simple boilerplate language a central bank might use to indicate the expected
direction of the next
interest rate move.
In rising
rate environments, credit spreads tend to
move in the opposite
direction to
interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yields.
Bond prices and
interest rates move in opposite
directions.
Hints of a tighter monetary policy from the ECB and anunlikely
interest rate increase from the SNB confirm that both central banksare
moving in opposite
directions.
«While the Fed is
moving in one
direction and getting ready to raise
interest rates and embark on a tightening cycle, the European Central Bank is going in the other
direction and easing monetary policy,» says Eric Viloria, a currency strategist at Wells Fargo in New York.
While the Fed is
moving in one
direction and getting ready to raise
interest rates and embark on a tightening cycle, the European Central Bank is going in the other
direction and easing monetary policy.
Home price decreases:
Interest rates have really just one direction to go, if you assume that home prices will move inversely to interest rates (which is a reasonable assumption), then home prices may definitely
Interest rates have really just one
direction to go, if you assume that home prices will
move inversely to
interest rates (which is a reasonable assumption), then home prices may definitely
interest rates (which is a reasonable assumption), then home prices may definitely decline.
Government bonds have typically been more sensitive to changes in U.S.
interest rates, as they have a much higher proportion of foreign buyers and sellers from countries where local
rates might be more stable or
moving in the opposite
direction.
Treasury prices
move in the opposite
direction of
interest rates.
Although
interest rates have seemingly little leeway to
move in any
direction but up, it's hard to predict when, or how fast, they'll rise.
And this can positively or adversely affect the stocks depending on the
direction in which the
interest rate is
moving.
An easy way to grasp why bond prices
move in the opposite
direction as
interest rates is to consider zero - coupon bonds, which don't pay coupons but derive their value from the difference between the purchase price and the par value paid at maturity.
Share prices and yield will be affected by
interest rate movements, with bond prices generally
moving in the opposite
direction from
interest rates.
On the other side of the border,
interest rates are poised to rise and if our
rates are
moving in opposite
directions, the U.S. dollar could continue to be strong relative to our loonie.
Inflation and
interest rates behave similarly to bond yields,
moving in the opposite
direction from bond prices.
Although the relationship between
interest rates and the stock market is fairly indirect, the two tend to
move in opposite
directions: as a general rule of thumb, when the Fed cuts
interest rates, it causes the stock market to go up; when the Fed raises
interest rates, it causes the stock market as a whole to go down.
The Fed has been cutting the key
interest rate in order to get the economy
moving in the right
direction.
In rising
rate environments, credit spreads tend to
move in the opposite
direction to
interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yields.
If your credit score is 650 or «average», any
move in an upward
direction will benefit you in the long run with better
interest rates and lower debt balances.
Going forward along with economic revival, I am expecting
interest rate will
move in downward
direction.
Remember,
interest rates and bond prices
move in opposite
directions, so rising
rates mean lower prices for existing bonds.
Interest rate risk may be lower than some bonds as the investment's pricing tends to
move in the same
direction as stocks.
Interest rates and bond prices move in opposite directions so that as interest rates rise, bond prices usually fall, and vic
Interest rates and bond prices
move in opposite
directions so that as
interest rates rise, bond prices usually fall, and vic
interest rates rise, bond prices usually fall, and vice versa.
And then there's the risk that
interest rates will start climbing and cause capital losses, since bond prices
move in the opposite
direction.
Because
interest rates and bond prices
move in opposite
directions; if
interest rates rise, the value of a fixed income security falls.
Among finance types like me, the fact that bond prices and
interest rates move in opposite
directions is so fundamental and obvious that it is used as a punch line.
Interest Rate Risk: Fixed income securities are subject to interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interes
Interest Rate Risk: Fixed income securities are subject to interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interest ra
Rate Risk: Fixed income securities are subject to
interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interes
interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interest ra
rate risk because the prices of fixed income securities tend to
move in the opposite
direction of
interestinterest rates.
A rise or a decline in yield from one day to the next of more than 10 basis points constitutes a major price
move and therefore a major change in the
direction of
interest rates.
When
interest rates were falling, I expected to see P / E ratios
moving in the opposite
direction — and vice versa.
They were issued at a time when
interest rates were higher, and as
rates fell, the price of these bonds rose above their par value (
interest rates and bond prices
move in opposite
directions).
I'll bet many investors thought that
interest rates only
move in one
direction, now they are beginning to realize that at low
rates bond duration increases and when
rates rise you actually lose money in your fund.
Bond prices generally
move in the opposite
direction of
interest rates.
That publications like the Wall Street Journal need to repeat in virtually every article about bonds that
interest rates and bond prices
move in different
directions is a clue that this market is less well understood.
A CMO tranche that pays an adjustable
rate of interest that moves in the opposite direction from movements in a representative interest rate index such as the London Interbank Offered Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (CO
rate of
interest that
moves in the opposite
direction from movements in a representative
interest rate index such as the London Interbank Offered Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (CO
rate index such as the London Interbank Offered
Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (CO
Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (COFI).
The major risk in such Currency carried trade is that the exchange
rate is rather uncertain and very often
moves in a hostile
direction, crushing the profit from the
interest rate difference and sometimes a short motion in exchange
rates can cause big or even huge damages, unless it is secured appropriately.
The variable
rate will go up and down throughout the term, and you will never know which way it is
moving, but there always is the potential that the
interest rate will frequently
move in a
direction that's good for you.
Short - term and long - term
interest rates may not
move the same amount and may not
move in the same
direction.
Because
interest rates and bond prices
move in opposite
directions, this policy has been a boon for bonds.
Taken together with increasing (private) investor aversion to (European) equity markets, prolonged low
interest rates, and the eventual threat of higher inflation & lower entitlements, this seems to virtually guarantee a slow but sure convergence in ownership towards other Western countries (who will perhaps be slowly
moving in the opposite
direction).