Sentences with phrase «environment of low interest rates»

«The rise in housing prices and the increase in household investment in houses and consumer durables do not appear out of line with what might be expected in the current environment of low interest rates and continuing growth in real disposable incomes,» Kohn averred.

Since 2008, investors have been enjoying a relatively lenient lending environment of low interest rates (what I call: free money) and accommodating lending rules.

Funding your retirement is a challenge with so many different options and a prevailing environment of low interest rates making savings accounts an unattractive option, which is why some investors are looking into the potential of a precious metals IRA.

«It's interesting after all this time, how our thinking about interest rates has been shaped by this very, very long environment of low interest rates that even an overnight rate of 1.5 per cent could look like a big deal,» he said.

The fact is that in this environment of low interest rates, people have gone out on the risk curve and bought utilities, dividend aristocrats, etc. to try and generate yield.

Let's look at what happened to the change in the CAPE valuation multiple and its contribution to total returns in the 1960s, which was an environment of low interest rates to start with which moved higher over the decade.

The current environment of low interest rates and a weak dollar remain supportive of gold prices, Ms. Ong said, adding that the potential for further quantitative easing by the Federal Reserve also increases gold's appeal in the longer term

Not surprisingly, in the environment of low interest rates and modest economic recovery, the short - biased funds had the worst and the fixed income funds had the best performance in the past five years.

Though it has been making a killing issuing mortgages in North Dakota, profiting off of the Bakken Shale explosion in the region, BNCCorp's interest income has been steadily falling in an environment of low interest rates.

The current environment of low interest rates and elevated equity valuations has many investors in a tight spot, as return expectations are lower than usual for both bonds and domestic stocks.

Banks commonly trade at under their book value in environments of low interest rates, flat or inverted yield curves, and high amounts of regulation.

Not exact matches

Unicorns were created in the aftermath of the financial crisis, when the low interest rate environment prompted investments in riskier assets, such as the stock of privately held companies.

Unicorns have been direct byproducts of the low - interest - rate environment, financial experts say.

«There's a lot of money seeking a home, especially in this low interest rate environment,» Mingda Zhao of Vinson & Elkins LLP, a law firm that has negotiated drillco agreements, said in an interview.

We are still in a very low interest rate environment, and even with rates going up, I feel that interest rates will be at the low end of the scale.

Alexander agrees that we'll remain in a low - interest - rate environment for at least two or three years, though he can see the Bank of Canada increasing rates by, at most, 1 % between now and 2015.

One of those questions, in this very depressed interest - rate environment is; what if low rates are the norm?

«It is thus important to realize that in the current environment of low long - term interest rates, fiscal prudence does not require bringing the annual budget balance to zero almost immediately,» he wrote in a paper for the Bennett Jones law firm.

The sector isn't devoid of challenges: Canada's banks are contending with an ongoing low - interest - rate environment, slower consumer lending growth and weakness in the securities business.

Financial institutions in advanced economies face a number of cyclical and structural challenges and need to adapt to low growth and low interest rates, as well as to an evolving market and regulatory environment.

The private sector often demands rates of return far greater than public sector borrowing costs, especially in the current low interest rate environment.

Indeed, shorter - duration, tax - free munis have a history of delivering positive returns even during economic downturns and in environments of rising and lowering interest rates.

Interest - only loans had grown very strongly for a number of years in an environment of low mortgage rates and heightened competitive pressures among lenders.

In the mad scramble for loan creation during the final phase of the Housing Bubble, the government created an environment of essentially free money by allowing the big agencies, Fannie Mae and Freddie Mac (or Phony and Fraudie, as I often affectionately refer to them), to securitize loans to the bottom of the barrel risks with crazy terms like no money down and incredibly low «teaser» interest rates.

Earning 8 % per year would be helpful but may be difficult to pull off in the current environment of higher valuations and lower interest rates.

In a low - inflation environment, nominal interest rates are also low, and households are able to service much higher levels of debt than they could in the past.

That interest indicates investors» willingness to bet on the potential growth — and accept the potential risks — of a startup company in the context of a low - interest - rate environment.

Importantly, even in today's low interest rate environment, I am able to meet my entire annual budget and then some with just this 40 % of my taxable accounts.

So, what does this all mean in the context of today's historically low interest rate environment?

On one side, the low interest - rate environment has been one of the ingredients for a strong stock market and on the other hand higher rates will greatly benefit income seeking investors.

This could make market liquidity more fragile in the short term, especially in the current low interest rate environment, in which new - issue volume and the participation of interest rate - sensitive investors have increased.

The lower levels of concern around short - term fluctuations in portfolio values may also reflect a growing sense of realism amongst investors and the fact that they are starting to swallow the pill of lower returns in this low - interest - rate environment,» he added.

And the previously low interest rate environment paved the way for many of these defensive businesses to load up on debt to expand their operations, while continuing to pay high dividends to investors.

We continue to have a very positive fundamental intermediate - term view, but believe (1) the improved economic data, (2) fear of higher interest rates, (3) a less dovish Fed, (4) historically low volatility, and extreme overbought condition creates an environment ripe for a correction.

This low interest rate environment and the growing pool of institutional funds have encouraged investors to search for investment options that offer a higher yield.

These periods have been shorter in duration (average half a year) and seen slightly smaller rate moves, a reflection of the low inflation and low interest rate environment over the past 20 years.

The current low interest rate environment globally has pushed the majority of fixed income securities to record - low yield levels across the board.

An inverted yield curve is an interest rate environment in which long - term debt instruments have a lower yield than short - term debt instruments of the same credit quality.

In an environment of persistently low inflation and real equilibrium interest rates, the Fed will not be able to raise rates much further.

In this low - interest - rate environment, the value of money has fallen close to zero.

People talk about robust inflationary environments in China, Asia and emerging markets In America the Fed's game of lowering interest rates and increasing money and credit and monetizing paper will end over the next two years, maybe three.

Going as far back as 75 years, I can not recall a single instance of the stock market and economy crashing during a low interest rate environment like we are in now.

A great summary of the risks associated with the low - for - long interest rate environment.

The timing of the surge of deals has its roots in a low - interest - rate environment that has lowered the cost of funds.

For instance, according to ValuePenguin's analysis of savings rates, some online banks offer interest rates that are 100 times better than ones at brick - and - mortar ones — although, given today's low - interest environment, you still won't get rich on even those higher rates.

We're not holding a large amount of assets in checking and savings accounts at the moment though due to the still relatively low interest rate environment.

The combination of low levels of ES funds and the cash rate remaining close to its target suggests a couple of conclusions: first, the market players involved with RTGS have adapted well to operating in the new environment; and second, participants have reasonable confidence about the availability of cash near the interest rate announced by the Reserve Bank as its policy target.

report on dividend strategies: «The previous low - interest - rate environment paved the way for many of these businesses to load up on debt to expand their operations, while continuing to pay high dividends.

Get a comparative review of two leading financial sector ETFs, XLF and KRE, and learn how each has performed in a protracted low interest rate environment.

As many fixed income investors have discovered in the low interest rate environment of the past several years, opportunities to achieve better levels of income exist, but thoughtful consideration of the potentially higher risks associated with the hunt for better yield is essential.