Sentences with phrase «in a rising interest rate environment as»

Generally speaking, banks become more profitable in a rising interest rate environment as they lend out money to their customers.

The variability of returns is expected to be greater than the index as the intent of the portfolio is to provide both protection in rising interest rate environments as well as ultimately provide a higher level of return through both income and capital appreciation.

Not exact matches

In the later stages of an expansion — where we are now — basic materials are a good play, as are financials in this rising interest - rate environment, which creates lucrative spreads for banks and financial services companieIn the later stages of an expansion — where we are now — basic materials are a good play, as are financials in this rising interest - rate environment, which creates lucrative spreads for banks and financial services companiein this rising interest - rate environment, which creates lucrative spreads for banks and financial services companies.

It's possible we could see the interest rate environment play out as it has in the past by rising sharply or staying in a narrow band for some time to come.

A number of factors — such as rising US interest rates, the recurrence of big fluctuations in global currencies, and the widening dispersion of equity returns across sectors and regions — may have helped to create an increasingly conducive environment for hedge - fund strategies, which have seen a positive turnaround in performance in recent quarters.

That's because banks have historically tended to do well in rising rate environments, as they can benefit from making loans at higher interest rates.

In a rising interest rate environment, the value of mortgage backed securities may be adversely affected when payments on underlying mortgages do not occur as anticipated.

The conditions in any two investing environments are never the same, but we do have historical evidence on what has happened in the past when interest rates rose from similar levels as those seen today.

As the Federal Reserve moves to increase interest rates, we explore the benefits of dynamic cash management in a rising rate environment.

We are witnessing a replay of the 1970's era inflation as oil and interest rates (which track each other) rise in a shrinking economic environment.

The rising interest - rate environment appears likely to increase how much performance varies among equities, as valuations are adjusted to reflect more accurately the differences in companies» growth outlooks, cash flows and balance sheets.

As most of these securities are relatively new, there is no track record available to gauge how they might perform in a rising interest rate environment.

In this environment, rising interest rates could spell trouble for indebted consumers who have already reduced their spending (as evidenced by the recent slump in retail salesIn this environment, rising interest rates could spell trouble for indebted consumers who have already reduced their spending (as evidenced by the recent slump in retail salesin retail sales).

Our goal is to remain defensive in our approach to investing as we navigate a rising - interest - rate environment.

That's because banks have historically tended to do well in rising rate environments, as they can benefit from making loans at higher interest rates.

In a rising rate environment, interest rate risk comes to the forefront, and this is particularly true for fixed income products because of their sensitivity to interest rates, as measured by the concept of duration.

This means the 52bp pick up in yield that one gets today would result in a lower total return later, as bond prices would decrease in a rising interest rate environment.

A future home refinance certainly won't be as easy as when rates were falling, but with a shift in goals and tactics there are still ways refinancing can make sense in a rising interest rate environment.

Most corporate bond funds will experience a dramatic drop in value as we enter into a rising interest rate environment.

This could be a good play if interest rates continue to rise as Lifecos typically do well in a rising rate environment.

Given the rising interest rate environment as a result of stronger economic growth, they believe that, in the current market, positioning the fund along the intermediate portion of the yield curve provides investors less interest rate sensitivity than longer duration portfolios.

As a result, you CAN lose money on a bond fund in a rising interest rate environment.

Generally speaking, the appeal of leveraged loans in a rising rate environment is the floating nature of coupons — as interest rates increase, the base rate (typically 30 - 90 day LIBOR) also increases, providing market participants with a way to minimize interest rate risk while also generating extra income.

Considering the multi-decade period of falling rates since the 1980s — including the unprecedented zero - interest - rate policy in force from 2008 to 2014 — it is safe to say that we are in uncharted waters as we move toward an environment in which rising rates could possibly be the new norm.

In low interest - rate environments, investors face risk to principal as rates gradually rise and principal declines.

In a rising interest rate environment, it is risky to have investments tied up in longer - term bonds when their value has yet to decline as a result of higher yields over timIn a rising interest rate environment, it is risky to have investments tied up in longer - term bonds when their value has yet to decline as a result of higher yields over timin longer - term bonds when their value has yet to decline as a result of higher yields over time.

The bad news is those caps are pretty high, so student loan interest rates are likely to continue rising, as long as we remain in this rising - rate environment.

As detailed above, investing in bond funds can be tricky in a period of rising rates, but they do have benefits in that the investor is outsourcing his or her capital to a bond professional that should have a fair level of expertise in specific bond strategies in a mix of interest rate environments.

The global regime change in favour of a rising interest rate environment, coupled with the success of populist leaders around the world such as Donald Trump, is creating a lot of dispersion in financial markets.

The under - performance stemmed from concerns about consumer spending maxing out last year, as well as investor concerns about leverage levels in an environment of rising interest rates.

In addition, sectors that tend to perform better in a rising interest rate environment are those with shorter term leases, such as apartments, hotels and SFRs, he addIn addition, sectors that tend to perform better in a rising interest rate environment are those with shorter term leases, such as apartments, hotels and SFRs, he addin a rising interest rate environment are those with shorter term leases, such as apartments, hotels and SFRs, he adds.

Not only is that the right thing to do as taxpayer - owned entities, but it could help households who otherwise might not be able to buy in today's rising interest - rate environment.

One of these factors is the public REITs» cost of capital, which had risen earlier in 2016, improved midway through the year and then increased again in large measure as a result of actual or perceived changes in the interest rate environment.

«Values are continuing to rise at a steady, consistent pace and new inventory is slowly coming to market as more and more long - time owners are coming off the fence to sell in an environment where interest rates are at all - time lows, demand is unrelenting and looming tax increases are on the horizon,» said Ken Uranowitz, managing director.