Sentences with phrase «hedge against rising rate»

«We see more activity in interest rate derivatives to hedge against rising rate risk.

As the Federal Reserve eyes a tighter monetary policy with higher rates ahead, exchange traded fund investors do not have to rely solely on tradition investment options to hedge against rising rate risks.

But getting a pre-approval with a big bank means you are also hedging against rising rate risks.

For these professionals, liquid bond ETFs are a convenient, diversified way to hedge against rising rates and seek higher yields, at lower cost than active mutual funds.

(ETF Trends: Dec 6, 2013) ETF Trends» Tom Lydon talks to ProShares» Head of Investment Strategy Joanne Hill about using ETFs to hedge against rising rates.

Claymore says that in an investment portfolio equally divided between stocks and bonds, you might consider putting 10 to 15 per cent of the whole in CIB as a hedge against rising rates.

Not exact matches

And now that our careers are going, we're looking at maxing out two traditional 401Ks and two Roth IRAs this year, and we see the Roth IRA portion as a small hedge against rising future tax rates (or what I think is a bit more likely to happen — tax brackets that don't keep pace with inflation, so keep sucking in more and more people to higher brackets).

Rising rates also boost the appeal of floating rate assets, which are designed to hedge against monetary tightening.

The company's higher - than - average exposure to equities and its high combined ratio make the company a mediocre choice for an investment hedge against rising interest rates.

I just hedge against rising interest rates with direct CDs; the early withdrawal option provides the hedge.

Indeed, Claymore's website suggests that CIB can be used to «hedge portfolios against rising interest rates and effects of inflation.»

IGHG also includes a portfolio of short U.S. Treasury futures as a built - in hedge against the effects of rising interest rates.

But, because of that, our investment committee has made some very interesting and innovative moves to hedge against extra rising interest rates within our bond portfolios.

IGHG and HYHG seek to hedge investment grade bonds and high yield bonds, respectively, against the negative impact of rising rates by taking short positions in Treasury futures.

«We believe that the strong flows into our interest rate hedged ETFs demonstrate investor interest in going beyond short - term bond funds to protect against rising rates,» said Michael Sapir, Chairman and CEO of ProShare Advisors LLC.

To hedge against this a bit, keep maturities short while interest rates are low, so that you can easily take advantage of rising rates without losing too much in price.

Hedge against rising interest rates by converting an adjustable rate mortgage (ARM) to a fixed - rate mortgage and lock in a low interest rate

(The Wall Street Journal: Apr 13, 2015) The «Alternative Investing» advice column in The Wall Street Journal's Wealth Management special section features ProShares High Yield — Interest Rate Hedged (HYHG) among high yield ETFs that «try to protect against the risk of rising interest rates.»

A caplet is designed to provide a hedge against a rise in the benchmark interest rate, such as the London Interbank Offered Rate (LIBOR), for a stated perrate, such as the London Interbank Offered Rate (LIBOR), for a stated perRate (LIBOR), for a stated period.

He highlighted ProShares Investment Grade — Interest Rate Hedged ETF (IGHG) and ProShares High Yield — Interest Rate Hedged ETF (HYHG), which have built - in hedges against the effects of rising rates.

IGHG seeks to hedge investment grade bonds against the negative impact of rising rates by taking short positions in Treasury futures.

If you have a fixed - rate FHA, VA or conventional loan you have a hedge against inflation and no need to worry about prepayment penalties, rising rates or looney payment increases.

Additionally, we may explore how well each of the indices fills requirements of other motivations behind commodity allocations such as liquidity, emerging markets exposure, or hedging against rising interest rates.

If you have any bonds in your portfolio (that you plan on keeping as rates are rising) then investing in some TBT covered calls could act as a hedge against those interest rate increases.

Non-traditional bonds provide a hedge against a rise in interest rates, so investors naturally were looking for a way to avoid what was initially thought to be a sure thing in 2014 — rising rates.

HYHG seeks to hedge high yield bonds against the potential negative impact of rising Treasury interest rates by taking short positions in U.S. Treasury futures.

Solar energy has become a mainstream way to save on utility bills and hedge against rising electricity rates and has wide appeal beyond the green consumers niche.

To protect against interest - rate risk, Fannie Mae uses derivatives that rise and fall in value with rate changes, though the long - term economic impact of the hedging is negligible.

Borrowing money now is a great hedge against rising interest rates.

Financing rental properties isn't just a hedge against rising interest rates but it also serves to shift some of the risk to the lender.