Sentences with phrase «in interest rates causes»

Typically, a rise in interest rates causes a decline in the value of fixed income securities or derivatives owned by the Fund.
If the investor needs some funds before the bond's maturity, the rise in interest rates causes a lower price for the bond on the open market.
Typically, a rise in interest rates causes a decline in the value of fixed income securities.
As with all bonds, a rise in interest rates causes prices of bonds and bond funds to decline.
For instance, in 1987 the rise in interest rates caused the price of the Vanguard Total Bond fund to plummet by a whopping -7.6 percent.

Not exact matches

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.
Poloz indicated in his statement that the prospect of a big spending push by the federal government caused the committee to move away from its intention to cut interest rates.
In other words, there is no certainty that the Fed «taper» will cause interest rates to move higher than they already have.
The experience of fellow sailors caught in rougher waters caused Bank of Canada Governor Stephen Poloz to rethink the merits of negative interest rates.
But the lack of any statement about when the next one would happen moved markets that trade in future interest rates hikes, causing the price of so - called Fed funds futures to drop.
It will probably do the opposite and cause a jump in interest rates.
But the downturn in the 1980s was caused by the sudden and massive increase in interest rates by the Paul Volcker - led Federal Reserve, not a meltdown of the global financial system.
The Bank of England Thursday raised U.K. interest rates for the first time since 2007, in an effort to support the pound and head off inflationary pressures caused by a slump since the U.K. voted to leave the EU 16 months ago.
And not just as a counterweight to more volatile equities — the steady decline in interest rates since the 1980s caused bond prices to rise, giving their holders» RRSPs a nice tailwind.
The Bank of England says not even a spike in inflation is going to cause it to raise interest rates through the desperately uncertain «Brexit» process.
Before policymakers and pundits conclude that the rise in student loans is the cause of the decline in rates of entrepreneurship among millennials — and decide that debt relief is the way to boost entrepreneurial activity among young people today — they should consider that waning interest in entrepreneurship predates the student loan crisis by many years.
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.
Many of them may relate to an optimistic scenario — one in which the economic recovery accelerates, causing the Federal Reserve to tighten monetary policy and interest rates to rise.
These firms allow consumers quick, easy access to credit, but in return offer extremely high interest rates, which if not managed properly can cause big problems for the people taking the loans.
When Bernanke's taper talk caused long - term interest rates to rise much faster than the Fed intended, one of the ways in which the central banks sought to allay market fears was to stress that it would keep short - term rates steady until the jobless rate had reached at least 6.5 %.
The only production that could be brought back on line fast is shale oil, but without the extremely low interest rates caused by government meddling, shale drilling will be much more expensive in the future.
Rising interest rates might cause prices to slow in growth (and yes, cash buyers won't care, so an AirBnB IPO might create a lot of new cash buyers).
Those policies will cause inflation and U.S. interest rates to rise, which in turn will pull capital out of emerging markets.»
Factors that could cause or contribute to actual results differing from our forward - looking statements include risks relating to: failure of DBRS to rate the Notes at the anticipated ratings levels, which is a closing condition, or at all; changes in the financial markets, including changes in credit markets, interest rates, securitization markets generally and our proposed securitization in particular; the willingness of investors to buy the Notes; adverse developments regarding OnDeck, its business or the online or broader marketplace lending industry generally, any of which could impact what credit ratings, if any, are issued with respect to the Notes; the extended settlement cycle for the scheduled closing on April 17, 2018, which may exacerbate the foregoing risks; and other risks, including those described in our Annual Report on Form 10 - K for the year ended December 31, 2017 and in other documents that we file with the Securities and Exchange Commission from time to time which are or will be available on the Commission's website at www.sec.gov.
Caused by worries of a summer interest rate hike and uptick in the U.S. dollar, gold and silver both stalled in May but have since rallied on the back of Brexit and with government bond yields in freefall.
Instead, a sharp shift in fiscal policy led to high real interest rates that stimulated a strong demand for the dollar, which caused the dollar to appreciate sharply.
Over the past decade, there have been times (such as in 1988) when higher interest rates have pushed up the exchange rate (i.e. a positive relationship between the two), but there have also been episodes (such as in 1985 and 1986) when a weakening exchange rate caused the Bank to raise interest rates (a negative relationship).
In 1994 high interest rates combined with high debt were the main cause of the rising deficit and debt.
Rising interest rates may cause the value of an investment in preferred stocks to decline significantly.
The fifth, and most recent, factor is the US Federal Reserve's signals that it might end its policy of quantitative easing earlier than expected, and its hints of an eventual exit from zero interest rates, both of which have caused turbulence in emerging economies» financial markets.
The deflation proponents believe that creditors will not accept being repaid with worthless money and that they will force interest rates higher, which in turn will force a rise in the currency and thus cause prices to decline.
Wiping out Puerto Rico's debt, they warned, could undermine confidence in the municipal bond market, causing bond interest rates to rise, imposing an additional burden on already - struggling states and municipalities across the country.
That said, if the economy really starts growing gangbusters again, the Fed could start raising interest rates, causing a commensurate jump in US treasury yields, which will lead to higher savings interest, CD interest, and dividend yield payout ratios.
In Germany, the cities of Würzburg and Hagen were awarded damages for losses caused by interest rate swaps.
China has only completed the first part of the rebalancing — interest rates, wages and the currency have all moved sharply closer to healthy levels, levels at which the imbalances are no longer getting worse, in other words, but Beijing has still not got its arms around credit growth because to do so would cause GDP growth to drop much more sharply than Beijing is willing to tolerate.
Effective forward guidance on interest rates causes market participants to lower their expectations and uncertainty about future path of interest rates and to anticipate that easier financial conditions will persist well in to the future.
Thus fluctuations in interest rates will cause the total return on bonds to fluctuate, with long - term bonds fluctuating more than short - term bonds.
After Austria's state - owned railroad, in 2009, reported a $ 1.3 billion loss caused by writing down the value of interest rate swaps, it successfully sued Deutsche Bank on the grounds that the lender had not disclosed the risks associated with the derivative.
Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses, estimated gross profits and demand for our products;
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.
Not only does it cost you interest, but it can cost you down the line in the form of a lower credit score, causing you to pay higher interest rates on mortgages and car loans.
With the bear market that started in 2011 likely being over, further hints on economic weakness could cause a sustainable rally gold, even without a clear signal from the central banks that, in fact, interest rates will remain depressed for the foreseeable future.
Lesson 3: Duration and Interest Rate Risk — Since interest rates affect bond prices, one of the biggest risks when investing in bonds is that interest rates will move higher, causing the value of your bonds to losInterest Rate Risk — Since interest rates affect bond prices, one of the biggest risks when investing in bonds is that interest rates will move higher, causing the value of your bonds to losinterest rates affect bond prices, one of the biggest risks when investing in bonds is that interest rates will move higher, causing the value of your bonds to losinterest rates will move higher, causing the value of your bonds to lose value.
As is common in countries with negative real interest rates, German investors are pulling money out of low - yielding bank accounts and investments and plowing it into all types of real estate, causing prices to boom for the first time in a very long while.
But rising interest rates might have caused it to slow in July.
Through its effect on real long - term interest rates, this difference causes the output gap and inflation to decline substantially more in the VAR - based case.
All this currency intervention from central bankers is not only causing stocks to rise, but bond prices have risen as their yields fall in response to news that central bankers are going to be buying bonds in an attempt to lower interest rates further still.
He believes the instability in these markets will cause the feds will to maintain interest rates because they are hoping that things would calm down enough by Dec..
Over the first six weeks of the year, the Dow Jones Industrial Average declined 10 %, as the prospect of interest rate hikes by the Federal Reserve, a slump in oil prices, and concerns about economic conditions in Europe and China caused the long - running bull market to stumble.
Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline.
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