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

It is interesting that you are skewing towards a larger bond portfolio in a rising interest rate environment which is not what most advisors would recommend.

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.

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.

Investments in asset backed and mortgage backed securities are subject to prepayment risk which can limit the potential for gain during a declining interest rate environment and increases the potential for loss in a rising interest rate environment.

Investments in mortgage - backed securities are subject to prepayment risk, which can limit the potential for gain during a declining interest rate environment and increase the potential for loss in a rising interest 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.

With duration in mind, which bond segments should investors consider in a potentially rising interest rate environment?

Also keep in mind that flexible bond strategies have the potential to outperform in rising and flat interest rate environments, and can help provide meaningful diversification, which may reduce overall volatility in a portfolio.

I showed him the graph below which shows lower than average TOTAL returns in a rising interest rate environment and he checked his long - term data and found that bond holders between 1953 and 1980 had actually lost money.

Rates are fixed, unlike credit card interest rates which typically are variable and can go up in a rising - rate environRates are fixed, unlike credit card interest rates which typically are variable and can go up in a rising - rate environrates which typically are variable and can go up in a rising - rate environment.

Bond fund prices are marked to market on a daily basis, which means that indeed, you CAN lose money in a rising interest rate environment.

Interest rates will also only go higher from here, which will compress that premium spread further, leaving us with high valuations in a rising rate environment.

She offers examples of how active investors can respond to changing markets: «If interest rates rise, active fixed - income investors could invest in short - term bonds, which tend to remain fairly stable in rising rate environments, or floating rate funds, which are more insulated from the negative impact of rising rates.

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.

Direct recognition companies, which allow the margin rate to be locked, tend to be favorable and illustrate better in a higher interest rate environment due to the fact that rising loan rates could exceed dividend crediting rates fairly quickly.

From an economic perspective, faster GDP growth historically benefits cyclical sectors, which include financials and energy, while the defensive sectors like utilities have historically underperformed in a faster growth environment due to rising interest rates.

Investments in asset backed and mortgage backed securities are subject to prepayment risk which can limit the potential for gain during a declining interest rate environment and increases the potential for loss in a rising interest rate environment.

When Treasury Bonds Perform Poorly An environment in which interest rates are rising will decrease the price of a Treasury security, though that means that their yield will increase at the same time.

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.