Sentences with phrase «effects of yield curve»
That would help to isolate the separate effects of yield curve shape and yield curve height.
http://bespokeinvest.typepad.com/ Not exact matches
They also suggest that the quantitative effects of economic news vary considerably along the yield curve and across markets.
These announcements generally had larger effects on the short end of the yield curve.
And so the yield curve could possibly approach inversion, but it may or may not occur or stay there very long because at that stage of the game, the flattening of the yield curve will greatly intensify all the other effects — the reduction in the reserve, monetary, and credit aggregates, as well as the weakness in velocity.
«The multi-year massive expansion of the Fed's balance sheet has had a recognized powerful effect on asset markets — lowering yields and flattening the yield curve.
But when the yield curve starts flattening, that intensifies the effect of the monetary tightening because it takes away or, at the very least, greatly reduces the profitability of the banks and all those that act like banks.
In practice this should allow targeting a positive yield curve against the backdrop of negative short - term rates and negative expected long - term real rates, thereby mitigating the debilitating effect of yield compression on the financial system.
In fact, one observational system of which I am aware (i.e., the TAP System for Teacher and Student Advancement) is marketing its proprietary system, using as a primary selling point figures illustrating (with text explaining) how clients who use their system will improve their prior «Widget Effect» results (i.e., yielding such normal curves; see Figure below, as per Jerald & Van Hook, 2011, p. 1).
The slope of the Treasury curve for that effect to be active now, particularly since high yield spreads have widened out from earlier in 2007.
In effect, agency REITs are a play on the yield curve as they borrow inexpensively on the short end of the curve, and «lend» more expensively on the long end.
You need a spreadsheet to predict the net effect on bond prices of both rate changes and changes of the yield curve (or position on the yield curve).
If quantitative easing is successful in reducing the overall government debt yield curve or injecting money into the system, but there is no trickle down effect to corporate bonds for example, then the central bank can target specific maturities and specific types of debt instruments (corporate bonds OR auto loans, mortgage backed securites, etc.) to achieve the desired effect.
The risk - free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.
Expected volatilities are based on a blend of historical and implied volatilities of our common stock; the expected life represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting schedules and our historical exercise patterns; and the risk - free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option.
The images produced by these methods yield a shimmering interplay between closely aligned colors, such as the light and medium Cadmium reds of Red Curve (State 2)(Fig. 4), or create startling effects of depth as in his black - and - white Rivers series.