Sentences with phrase «higher the interest rate risk»

The MOVE index suggested that US Treasury volatility was expected to be very low, while the flat swaption skew for the 10 - year Treasury note denoted a low demand to hedge higher interest rate risks, even on the eve of the inception of the Fed's balance sheet normalization (Graph 9, right - hand panel).

Duration, expressed as a number of years, measures a bond's interest rate sensitivity: The higher the duration, the higher the interest rate risk.

One popular bond investing strategy is called «laddering» and provides a trade - off between lower rates on short - term bonds and higher interest rate risk of long - term bonds.

At higher interest rates, banks would have more options to generate returns while taking less risk (Federal Reserve's ultra-low rates have pushed financial market participants into riskier behaviors such as taking higher interest rate risk, credit risk, etc):

Naturally, this fund exposes investors to higher interest rate risk, but not any more than is marketlike.

Higher the duration, higher the interest rate risk.

Long term bonds have higher interest rate risk, but offer high yields.

As discussed above, the longer the maturity of the fixed income securities, the higher the interest rates risk.

In addition, high - yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell them.

The higher the duration, the more the bond's price will change when interest rates move, therefore the higher the interest rate risk.

The longer you go out in maturity, the higher the interest rate risk.

According to the following article: Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher coupon rates.

In addition, high yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell the bonds.

With the long time horizon and fixed dividend amount, perpetual shares carry the highest interest rate risk amongst all preferred types.

Not exact matches

YELLOWKNIFE, Northwest Territories, May 1 (Reuters)- Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.

Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.

YELLOWKNIFE, Northwest Territories, May 1 - Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.

If interest rates rise and push that risk - free rate of return higher, then those dividend stocks and high - yield bonds are vulnerable.

Those federal rules, which double down on restrictions adopted in 2014 and stern warnings to lenders issued by OSFI earlier this summer, require banks to qualify borrowers at higher interest rates, impose additional limits on mortgages for buyers with small down payments, and compel financial institutions to share the risk by taking out insurance policies on low - ratio mortgages.

To cover some of the risk, lenders charge higher interest rates for longer term loans.

Number one is: Can earnings and growth outpace the risk we see in higher inflation and interest rates?

As interest rates for these seemingly safer investments increase, they become more attractive to investors, and as such, the incentive for investors to plow funds into high - risk opportunities decreases.

Unsecured loans typically come at a high interest rate due to the risk involved.

With no signs of creeping inflation, it doesn't hurt for the Fed to keep the pedal on the monetary metal, while removing stimulus too early could risk forcing interest rates and the dollar unnecessarily higher, putting a damper on the recovery.

With respect to interest rates, we continue to see a bifurcation for U.S. rates where shorter - dated yields move higher in response to possibly two or three more Fed rate hikes, while the U.S. Treasury 10 - year yield trades in a 2.25 percent to 2.75 percent range, with a temporary move toward 2 percent possible if geopolitical risks become realities.

And especially in the case of a business or a borrower who has lower credit scores, it's usually higher interest rates and fees that compensate for the higher risk the lender is taking.

«Gold is stuck between $ 1,238 - $ 1,260 with the risk to skewed to downside based on rising expected interest rates and failure to break higher which has left it vulnerable to profit - taking in the short term,» said Ole Hansen, the head of commodity strategy at Saxo Bank.

At some point, investors who are conflating high - yielding consumer staples stocks with bonds or who are taking interest rate risk in long - dated Treasurys will see drawdowns as well.

However, rates have retreated from over 8 percent in the last several weeks, and the credit risk of high - yield bonds can offer some diversification from the interest - rate risk of a portfolio of Treasury bonds.

High interest rates, of course, can compensate purchasers for the inflation risk they face with currency - based investments — and indeed, rates in the early 1980s did that job nicely.

Meanwhile, the survey summary attributed the low showing for bonds to a «wide agreement among advisors that interest - rate risk is exceptionally high right now.»

While there are credit cards and lending programs designed for individuals with poor credit, these options will typically charge a higher interest rate to compensate for the credit risk posed by a sub-prime borrower.

A business credit score below 750 can indicate a higher risk, which could lead to you being denied credit or a higher interest rate and lower credit limit if you are approved.

Record - low interest rates also have caused some big institutional investors to search for returns in the high - risk, high - reward world of venture capital.

Subordinated debt: Has a higher interest rate than senior debt does, in exchange for slightly higher risks (since loans get paid only after senior debt is paid).

A: Microloan interest rates are much higher than typical loan rates because their risks are higher: 12.5 % to 15 % is common.

The fact that the Federal Reserve has ended its «quantitative easing» and started to raise interest rates means that it can do so without too much risk of pushing the euro sharply higher and hitting the bloc's exporters.

Poloz said there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.

Having a poor credit score will either keep you from obtaining credit altogether or place you in a high - risk category, which means that if you're approved for credit or loans, the interest rates you'll be offered will be significantly higher than someone with excellent credit.

With interest rates at record lows, family and friends may be willing to take a higher risk for a higher short term return.

Debt securities rated below investment grade2 based on the issuer's weaker ability to pay interest and capital, resulting in the issuer paying a higher rate to entice investors to take on the added risk

We believe that the downside risk is that the economy enters a period of «overheating» characterized by rising inflation and higher interest rates.

Jumbo loans have higher interest rates to compensate for the additional risk.

Low interest rates have given a huge incentive to shift out of low - risk assets into stocks and corporate bonds in search of higher returns.

The higher the interest rate, the higher the risk.

When rates are rising interest rate risk is higher for lenders since they have foregone profits from issuing fixed - rate mortgage loans that could be earning higher interest over time in a variable rate scenario.

A wobbly equity market, expectations for higher interest rates and weaker economic growth in the first quarter have inspired some pundits to claim that bear - market risk for stocks...

Those markets recovered shortly thereafter, on the premise that low interest rates and high stock returns were worth the risk and that the risk of war on the Korean peninsula simply wasn't that high.

Confronted with the choice of whether to «lean» or to «clean» — leaning against emerging financial imbalances by keeping interest rates higher than they otherwise would be or cleaning up in the event the risks they create are realized by providing stimulus — central bankers at that time generally agreed that cleaning would be best.

Although some are concerned about potential inflation and higher interest rates, we still enjoy an environment of synchronized global economic growth and muted macro risks.