Sentences with phrase «in market interest rates»

Therefore, we would not expect our operating results or cash flows to be affected to any significant degree by a sudden change in market interest rates on our securities portfolio.

Finally, with the decline in market interest rates, the inflation protected bond fund increased in value 13 % and grew to 38 % of his total investment portfolio.

Interest rate risk is the uncertainty regarding the ending wealth value of the portfolio due to changes in market interest rates between time of purchase and the investor's horizon date.

Generally, a decrease in market interest rates may result in a somewhat higher net amount payable upon withdrawal; rising interest rates may result in a somewhat lower net payment.

When interest payments on variable - rate liability change based on changes in market interest rates, the value of the variable - rate liability can remain constant.

When college costs increase 4 % year over year (at least) for private schools, then a CD or savings account will do little to keep pace (even with the likely increase in market interest rates coming later this year).

Talk of US monetary tightening over the past month prompted a rise in market interest rates in Australia, particularly for longer - term securities, and a fall in the exchange rate of the Australian dollar.

However, I only know is that when there is a sudden shift in the market interest rates change dramatically almost overnight and if you are paying attention, you can lock in a rate that is much lower than if you wait a few more days.

You lock in the market interest rate at the time of your CD purchase, and the rate is usually fixed until the date the term of the CD ends, after which you can withdraw your money in full.

But offsetting that was the drop in market interest rates and annuity yields - which increased the portion of benefits coming from Principal Repayment.

A cash flow hedge lets a business hedge the uncertainty of cash outflow in interest payments on its variable - rate liability against changes in market interest rates by swapping to a fixed - rate liability.

The Fund may be subject to interest rate risk which is the risk that debt securities in the Fund's portfolio will decline in value because of increases in market interest rates.

This should either trigger a faster policy response, or raise concerns that the Fed is falling behind the curve; both scenarios should result in a rise in market interest rates.

Do not write me if your rescission is designed to allow you to profit from a decline in market interest rates that occurred after you locked the price.

As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

Because credit and default risk are the dominant drivers of valuations of high yield bonds, changes in market interest rates are relatively less important.

Changes in market interest rates.

No bonds of any kind can reach such a level of growth as any price appreciation in bonds depends on the few single - digit changes in market interest rates.

As we've discussed before, the duration of a bond fund is an important indicator of its risk level because the longer the duration, the more the fund's price will fluctuate as a result of changes in market interest rates.

It's interpretation is roughly: «duration equals the expected percent change in value of the security that will result from a 1 % change in the market interest rates».

However, due to their short duration, any change in market interest rates would have a relatively small market risk effect on T - bill prices.

Such funds invest in debt instruments such as Certificate of deposit, corporate and / or government papers and are less impacted with changes in market interest rates.

As a bondholder, the most important concept to be aware of is that the price of a bond has an inverse relationship to changes in the market interest rates.

Bond prices fluctuate daily in response to both changes in market interest rates and the credit quality of the underlying issuer.

A bond's price in the secondary market fluctuates daily around its face value to reflect changes in market interest rates.

A zero - coupon bond has the important advantage of being free of reinvestment risk, though the downside is that there is no opportunity to enjoy the effects of a rise in market interest rates.

Interest rate risk is the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates.