Sentences with phrase «higher levels of interest rate»

Prices tend to go up more for bonds with higher levels of interest rate risk.

In addition, bond funds investing in longer - term securities carry higher levels of interest rate risk.

The resulting high level of interest rates in the wholesale money market, the main source of funds for lenders such as mortgage managers, made it difficult for potential new lenders to compete with banks, who had access to low - cost retail funding.

(And five more eaches in 2016 and 2017, for those who dream that savers might get some compensation, and that the government's budget works at higher levels of interest rates)

That isn't a lot of yield considering the high level of interest rate sensitivity that long maturity bonds carry.

Betty may want to consider investments that have medium to high levels of interest rate risk, and low to medium levels of credit risk.

For this reason, fixed income investments that have medium to high levels of interest rate risk may provide better diversification to equities than investments with lower levels of interest rate risk.

Not exact matches

Private equity returns remained strong but were lower than the prior year quarter, while income from our fixed income investment portfolio increased due to a higher average level of fixed maturity investments and higher short - term interest rates.

In other words, would pushing the short - term interest rate down to 0 percent, from the current rate of 0.16 percent, propel the GDP growth and inflation to such permanently higher levels?

On the other hand, leaving the interest rate low encourages the kind of borrowing and spending that has produced record - high levels of consumer debt in Canada and pushed housing prices into the stratosphere.

The overall effect of higher interest rates in the simulation is to boost the level of productivity by around 1 or 2 % relative to the baseline.

The truth is that these mega-hits do raise awareness (for a while), but no one can sustain that level of interest, and in many ways it leads to high viewership and click rates not not necessarily high sales or loyal customers.

The record high levels of consumer debt among Canadians has also raised a red flag from Bank of Canada governor Mark Carney and others who have warned that interest rates will rise at some point — raising the cost of borrowing.

Mortgage interest rates also surged at the start of this year to the highest level in four years.

«The process of lowering interest rates causing higher levels of debt, debt service and spending, I think is coming to an end.»

The central bank has concerns about the ability of households to keep paying down their high levels of debt when interest rates continue their rise, as is widely expected over the coming months.

Whatever the reason, interest rates jumped to unprecedented levels here in the U.S.and it seemed as if the «new norm» was for a period of high sustained rates with no real end in sight.

This would imply a higher average level of interest rates and thereby give monetary policy more room to maneuver (Williams 2009; Blanchard, Dell» Ariccia, and Mauro 2010; Ball 2014).

The aggregate debt - to - income ratio has trended higher, but the ratio of interest payments to income is not particularly high, given the low level of interest rates (Graph 8).

The low level of interest rates means that even though debt levels are higher, the share of household income devoted to paying mortgage interest is lower than it has been for some time.

This brings me to a third plot line: that is, how we deal with the higher level of household debt and higher housing prices, especially in a world of more normal interest rates.

At the end of 2017, the total open interest in interest rate futures and options was 159.2 million, up 22.8 % from the end of 2016 and the highest level this industry has ever seen.

The faith in the effectiveness of interest rate cuts has driven the percentage of bearish investment advisors to a dangerously low 25.5 %, while the average equity allocation of Wall Street strategists is now above 70 %, the highest level in this market cycle and quite probably a record.

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.

All else equal, volatility in bond prices from interest rate moves is higher the longer you go out on the maturity and duration spectrum and the lower the level of interest rates.

Precious and Industrial Metals Inflation concerns, geopolitical tensions and interest - rate levels, especially real yields, contributed to a 1.7 % rise in the spot price of gold (to US$ 1,325 per troy ounce), as did swings in the US dollar.1 Gold prices traded within the US$ 1,305 — 1,360 range throughout the period, reached 18 - month highs in March and capped their third straight quarterly gain, a feat not seen since 2011.1 Haven demand was a key support as exchange - traded gold holdings of 2,269 metric tons (mt) neared a five - year high.1 The Fed is widely expected to boost borrowing costs, and investors have been carefully watching the central bank's statements to see whether it targets more rate increases in 2018 than previously projected.

Clearly... No Matter How Deliberately The Debt Assets Are Released To The Market... It Is A Virtually Impossible Task To Not Impact The Absolute Level Of Interest Rates Higher.

The PBO identified four key downside risks to the private sector forecast: global growth, especially in the U.S. could be slower than anticipated; the appreciation of the Canadian dollar could adversely affect exports; sovereign debt issues in Europe could restrain recovery there and put upward pressure on global interest rates; and the high level of household debt in Canada could restrain domestic demand.

Millions of people can see at least some of the major signs, such as the collapse of interest rates, record high number of people not counted in the workforce, and debt rising from already - unpayable levels at an accelerating rate.

Over the long run, considering the long - term growth of the U.S. economy, it would be wise to expect interest rates to normalize at higher levels than they are now, which benefits B of A.

«He doesn't want to leave any question about the independence of the Governor of the Bank of Canada, but we have a situation under the Conservative government that has allowed record household debt... and the bank is really caught between a rock and a hard place, because these high debt levels create pressure for higher interest rates, but inflation is very low.

Interest rate risk Although high yield bonds have relatively low levels of interest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be aInterest rate risk Although high yield bonds have relatively low levels of interest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be ainterest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be a factor.

Net interest expense increased 14 percent to $ 32 million reflecting higher average interest rates on the debt portfolio and higher levels of debt.

Bonds exhibit much higher volatility at lower levels of interest rates.

If the IT revolution increases profitable investment opportunities, then the equilibrium real interest rate must rise in order to encourage households to save more to finance the higher level of investment.

Three popular explanations are offered to justify the high level of share prices: that profits will grow faster; that the economy and hence equities have become less risky; and that lower, more stable inflation will reduce real interest rates.

Yet despite the most extreme version of these assurances in Japan, where the Bank of Japan has driven long - term interest rates to negative levels and has purchased stocks outright, the Nikkei 225 index is no higher than it was in November 2014.

Conditions for consumer spending also remain favourable, with low interest rates and relatively high levels of consumer confidence, especially in France.

The strength of wealth and income, developments in financial products, low interest rates and high levels of consumer confidence have all encouraged further household borrowing.

The point which Ben very appropriately emphasizes is that unmanaged secular stagnation in one place is contagious — that a higher level of saving over investment leading to low interest rates in one place, leads to current account surplus, leads to a capital outflow, which then leads to currency depreciation, leads to currency appreciation in other places, and leads therefore to spreading low demand and low interest rates everywhere.

As long as we see continued economic growth and inflation at current levels or higher, the current path of interest rate increases should continue.

The central bank obediently issued GKOs (government treasury bills) paying interest rates higher than 100 per cent annually, subsequently scaled back to a more «Latin American - type» level of about 25 percent.

But from the perspective of monetary policy transmission, the higher level of private sector leverage also does imply a stronger impact from interest rate changes.

LONDON (AP)-- The pound jumped on Friday to reach its highest level against the dollar in nearly five years after the Bank of England's governor predicted an interest rate hike might come sooner than expected.

Elaine Hung, vice-president of marketing for Sotheby's International Realty Canada, said low interest rates, high levels of immigration and a limited supply of homes heated up the high - end housing markets in Toronto and Vancouver.

Rising mortgage rates have dominated the first six weeks of 2018, and many in real estate predict still - higher interest levels ahead this year.

Despite the difficulties endured during the era of post-Lehman austerity, commercial and private - sector debt levels are low: Nonperforming loans are below 5 % and the banking system, unlike those of Poland or Hungary, did not have to tackle the fallout from high levels of foreign currency loans, because low interest rates and a stable Czech koruna meant these weren't taken up in large quantities.

The rate is capped at a certain level specified in the terms of the loan, so you are aware from the beginning how high the interest rate could possibly reach.

This is slightly higher than investing when stocks are richly priced and with no concern for the level of interest rates, but it is still significantly less than the long - term average seven year - return.

While the prospect of higher interest rates will keep investors on edge, it's not like we're returning to double - digit levels or the Fed is moving its terminal rate.So even the uptick in ten - year yields to 3 % or even 3.25 % is unlikely to kill the equity market rally as the benefits from fiscal stimulus should continue to feed through the markets.