Sentences with phrase «eliminate interest rate risk»

But there is a way to virtually eliminate interest rate risk — with interest rate hedged bond funds.

By moving a portion of your bond allocation to a fund such as these investors can eliminate some interest rate risk within their portfolio.

Because the duration hedge is reset on a monthly basis, interest rate risk can develop intra-month, and there is no guarantee the short positions will completely eliminate interest rate risk.

They offer a diversified bond portfolio, but include a built - in hedge that targets a duration of zero to eliminate interest rate risk.

ProShares High Yield — Interest Rate Hedged ETF (HYHG) is a high yield corporate bond ETF with a built - in hedge that targets a duration of zero to eliminate interest rate risk.

ProShares Investment Grade — Interest Rate Hedged ETF (IGHG) is an investment grade corporate bond ETF with a built - in hedge that targets a duration of zero to eliminate interest rate risk.

ProShares Head of Investment Strategy Simeon Hyman discusses how ProShares Interest Rate Hedged Bond ETFs target a duration of zero to eliminate interest rate risk.

This allows investors to eliminate interest rate risk at their investment horizon by simply holding a bond until maturity.

With this method, an investor is reasonably assured to receive principal back at maturity, and this method eliminates interest rate risk.

Not exact matches

Derivative transactions like interest rate swaps also serve the same purpose [of eliminating credit risks, MH & DB]» (Das 2006).

By shorting a variety of Treasury futures, the fund aims to achieve a net - zero portfolio duration, hence «eliminating» — or at least greatly minimizing — interest - rate risk.

Given that China has higher interest rates than the US, in the absence of expectations of a change in the target exchange rate one would expect the forward exchange rate (expressed as yuan per US dollar) to be higher than the spot exchange rate so as to eliminate the possibility of earning a risk - free profit over the term of the contract.

Think long Japanese stocks but short the yen, or long a set of bonds, but short Treasury futures to eliminate interest - rate risk.

Since fixed rate reverse mortgages eliminate the risk that the interest rate will increase, they're an extremely popular choice among borrowers, but in some cases limit the amount of proceeds you can receive.

This may help reduce their interest rate risk, but it doesn't eliminate it.

Refinancing your ARM may increase your monthly payments, but at least you can eliminate the risk of high interest rates in the future.

Also, if you plan to pay your loan back over a longer period of time, say 10, or 20 years, you might prefer to eliminate the risk of interest rate changes over time by selecting a fixed rate loan.

In a period of declining interest rates, the one risk that can not be eliminated is reinvestment risk, because the funds received at maturity will need to be reinvested at a lower coupon rate.

Fixed interest rates eliminate the risk of loan interest rates rising during the life of a loan, but they also eliminate the possibility of them dropping (as they can with a variable rate).

Interest rate risk, for example, can be reduced (or eliminated) if the lender puts a cap on how high the interest rate can rise, or if it offers a fixed intereInterest rate risk, for example, can be reduced (or eliminated) if the lender puts a cap on how high the interest rate can rise, or if it offers a fixed intereinterest rate can rise, or if it offers a fixed interestinterest rate.

Because of today's historically low interest rates, our refinancing of its current debt will save Co-op City and its residents more than $ 150 million over the 14 - year remaining term of the current loan and eliminate refinancing risk should interest rates rise.»

We were able to structure the refinance with early rate locks to eliminate the Sponsor's interest rate risk,» said Ernest Katai, senior vice president and manager of Berkadia's Detroit office, in a statement.