Sentences with phrase «higher volatility rate»

Inevitably, for many years ahead, digital currencies like bitcoin will remain as hyper volatile assets and for the high volatility rate of cryptocurrencies to decrease, the market will need to mature, develop, and evolve.

Not exact matches

«While common wisdom has it that higher volatility necessarily signals a discrete end to the [bull market], it is often the case that higher vol is a natural occurrence in the «late innings» of extended rallies, particularly when the Fed is raising rates, as was the case in late 1999 - 2000,» he wrote.

The beginning of his tenure has been defined by ramped up market volatility, a pickup in rates and the consensus that inflation is ticking higher after a prolonged period of price suppression.

While markets deal with more volatility, higher rates and rising inflation, BMO Capital markets says it has a strategy to help you sleep at night.

Volatility has come back with a vengeance recently as worries of rising inflation sent interest rates higher, rattling investors.

Stocks are falling as traders worry about rising interest rates, and volatility as measured by the VIX has jumped to its highest since the market turmoil of August 2015.

Hickey contends the markets were ripe for a sell - off, which was sparked by converging factors including worries that rising wages will spur higher interest rates, pension fund re-balancing and short volatility ETFs blowing up.

The two signals flashing red are volatility shocks, and spreads on the highest rated corporate bonds.

But longer maturities also lead to higher volatility, which is actually even higher at lower interest rate levels.

The stock market opened way down, continuing last Friday's selloff, though it has climbed back since the open — implying the return of volatility — as skittish investors continue to fear the sequence I describe in this AM's WaPo: tight labor market, wage pressures, higher interest rates, inflation, lower profit margins.

And price volatility is actually higher at lower rates than it is with higher rates because you don't have as large of an income stream to cushion the blow from the loss of principal.

Given that rate volatility will likely remain elevated in coming months, investors may want to look to the high yield sector, which is typically less sensitive to rate movements than other fixed income sectors.

If rates start to rise, bond volatility will be exacerbated by higher durations.

Seeks to provide a high level of current income, while providing lower volatility than a fund that invests in fixed - rate securities.

a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that usually includes interest; they have higher price volatility than coupon bonds as a result of interest rate changes

Even with low interest rates, bonds and preferred shares also protect the portfolio during periods of higher equity volatility.

A sudden fear of surging inflation and higher interest rates helped ignite the past week's stomach - churning stock market losses and violent bouts of volatility.

Lower volatility and higher rates will both be headwinds for the precious metal.

As a result of higher exchange rate volatility, both during the crisis and subsequently, market participants and policymakers became keenly aware of the need for better exchange rate risk management.

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.

This has led to more stock market volatility, but there are potential upsides to higher rates.

«I think we're moving back to an environment where there is going to be more volatility, more sector rotation, and higher rates will definitely change what works.»

The higher the duration of a bond or fund the higher the potential for volatility in both directions when rates move.

It's not just that future returns will be lower from current interest rate levels than they've been in the past; it's that volatility in bonds will be much higher from -LSB-...]

The recent burst of volatility has been unnerving, but it is important to remember that the macro environment of synchronized economic growth and muted macro risks remains solid, although some are concerned about potential inflation and higher interest rates.

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

These risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature of the restaurant industry; factors impacting our ability to drive sales growth; the impact of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack of suitable new restaurant locations; higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and marketing costs; a failure to develop and recruit effective leaders; the price and availability of key food products and utilities; shortages or interruptions in the delivery of food and other products; volatility in the market value of derivatives; general macroeconomic factors, including unemployment and interest rates; disruptions in the financial markets; risk of doing business with franchisees and vendors in foreign markets; failure to protect our service marks or other intellectual property; a possible impairment in the carrying value of our goodwill or other intangible assets; a failure of our internal controls over financial reporting or changes in accounting standards; and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.

The current state of the global economy threatens to cause further tightening of the credit markets, more stringent lending standards and terms and higher volatility in interest rates.

The dollar bond market has turned cold for Indian firms after a record 2017, with rising global interest rates, geopolitical concerns and market volatility prompting would - be financiers to demand either a higher yield or invest only in short - term paper maturing in two years.

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).

The impending rate hike could create high volatility among speculative assets, commodities and the USD.

«All of this has really triggered a spike in volatility because it's brought into question whether higher interest rates are going to curtail the global growth story or erode corporate profitability,» said Bangsund.

Therefore, bonds with higher duration generally have greater price volatility and the potential for losses when rates rise.

Exchange rate volatility has been high under the floating system.

Bottom Line: While I can see rates falling later in the year, it would likely be preceded by a spike in volatility and higher interest rates.

ECB President Draghi has appeared quite relaxed about the recent spike in yields, arguing that higher volatility is to be expected during periods of ultra-low interest rates.

Factors such as these, in the context of rising interest rates and high valuations, seem likely to result in greater volatility in the months ahead.

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.

Floating - rate loans have yields and volatility similar to high - yield corporate bonds, with one major difference: As their name indicates, their interest rates «float,» adjusting periodically based on a benchmark rate, typically the London Interbank Offered Rate (LIBrate loans have yields and volatility similar to high - yield corporate bonds, with one major difference: As their name indicates, their interest rates «float,» adjusting periodically based on a benchmark rate, typically the London Interbank Offered Rate (LIBrate, typically the London Interbank Offered Rate (LIBRate (LIBOR).

Investors in these markets can expect higher growth rates with more volatility.

Stronger - than - expected earnings growth of 18 % for the S&P 500 have helped stocks move higher, but potential causes of volatility, including additional tariff proposals and rising interest rates, continue to be headline risks.

High stock market valuations and slowly rising interest rates could mean lower long - term returns as well as higher market volatility.

Stocks with a history of consistently growing their dividends have historically tended to perform well and exhibit less volatility in a rising rate environment, while high yielding dividends, often considered «bond - like proxies,» have tended to be more vulnerable (due to their high debt levels) and have historically followed bond performance when rates rise.

Now, as many investors worry about a global growth slowdown, rising rates and higher volatility in U.S. equity markets, dividend growers offer potential opportunities due to their healthy balance sheets, as well as better valuations, and lower volatility.

High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.

Higher interest rates, increased inflation, and stronger market volatility are some of the reasons that investors should eye the stock market warily in 2018.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

Therefore, this index will have higher interest rates and greater volatility than 5 - year treasury bonds.

We see higher volatility ahead, given the risk of a British exit from the European Union, elevated U.S. valuations and the potential for a Federal Reserve rate increase in 2016.

But when rates are rising and we've just observed an abrupt reversal in leadership (new lows suddenly dominating new highs), it's not worth the gamble - the average return tends to be negative, and the volatility also tends to be unusually high.