Sentences with phrase «increase the interest rate spread»

Not exact matches

All told, we see another coupon - driven year for high yield with total returns of about 6 % possible as spreads tighten in line with anticipated modest increases in interest rates.

Higher interest rates and compressing cap rates have increased the cost of capital and narrowed investment spreads for medical office - focused REITs, prompting Stifel to downgrade three...

It would have almost no impact on U.S. interest rates, except to the extent perhaps of a slight narrowing of credit spreads to balance a slight increase in riskless rates.

Higher interest rates and compressing cap rates have increased the cost of capital and narrowed investment spreads for medical office - focused REITs, prompting Stifel to downgrade three stocks in the space.

As interest rates normalize, spreads between financial industry liabilities and assets will widen, and profitability should materially increase.

Second, the spread between product headline rates and interest rates increases when interest rates are low, as do product complexity and risk.

This fall in spreads was largely a result of the increase in Australian dollar issuance by non-Australian borrowers into the Japanese retail market (the uridashi market) which boosted demand to receive an Australian dollar interest rate under cross-currency swap agreements.

Rather, the increase in spreads appears to reflect both tightness in the Commonwealth Government bond market (where supply remains limited and demand by foreign investors appears to have increased) and upward pressure on swap rates (one benchmark against which corporate bonds are priced) as companies have sought to lock in fixed - rate borrowings due to expected increases in interest rates.

When interest rates edge higher, the spread between income from loans and payments on deposits typically widens, which can help increase bank profitability through higher net interest margins (NIMs).

And even though the difference between the rates on today's five - year fixed and the five - year variable is razor - thin right now, that spread is likely to widen as the economy picks up steam and more interest rate increases are announced.

Yield Spread Premium An increased fee or interest rate that is meant to counterbalance the costs incurred by a broker.

However, interest rate spreads (1 - 2 year Treasuries) are still well above financial crisis lows, and the actions Annaly and American Capital Agency have taken — specifically, increasing the use of derivatives to protect borrowing costs — should ensure the sustainability of their dividend.

In contrast, fixed reset dividends are typically based on spreads over five - year government bonds, then reset after five years based on interest rates that prevail at that time --- making them less sensitive to increasing rates.

However, your point about the reason for the tight VRM / FRM spread being more due to banks increasing the VRM / BoC spread rather than the market's collective wisdom (indirectly through the bond market) on future interest rates is well taken.

Once you start being able to add a number of properties to your investment portfolio shop around for loans from different lenders as you are able to spread the risk and costs if one lender increases their interest rates.

When rates increase, the spread between interest paid on deposits, versus interest collected on loans, widens.

On the other hand, the summer is typically an active time for home purchases, so lenders can afford to increase the spread, which results in higher interest rates.

Increase in the discount rate (the interest rate that the Federal Reserve charges member banks on borrowed money; these banks pass along the increased rate to borrowers in the form of a higher mortgage spread)

More importantly, says a Harvard study, «The current rate spread is an important influence on mortgage choice, as would be implied by a model in which borrowing - constrained households seek low rates in order to maintain the level of current consumption, or to increase the size of the house they can buy when constrained by bank limitations on mortgage interest - to - income ratios.»

Yes, they have the potential to: i) benefit massively, at least in the short - term, from a spike / step - change in volatility, and / or a large market decline, and ii) possibly benefit longer - term from an accompanying spike or sustained increase in interest rates (and / or credit spreads)-- historically, a primary driver of broker profitability was interest earned on client balances, which has now been almost eliminated.

It could take a while to see what effect, if any, the recent drop in interest rates has on demand for homes... But lower interest rates, as the word spreads, should increase demand for homes.

The increase in Treasury yields mirrored the returns of investment grade and BBB crossover issues, which are sensitive to movement in interest rates, while lower rated CCC - rated bonds had slightly positive returns (primarily due to 800 bps of Treasury spread insulating their sensitivity to interest rate movements).

In the face of tightening spreads, increased regulation, and the prospects for rising interest rates, outstanding commercial real estate debt to GDP will continue to rise higher above its long - term equilibrium.

There is easily 100 basis points in spreads to absorb an interest rate increase,» says Circ.

Thus, the cap rate spread should be increasing during such periods, assuming that interest rates remain constant.

CBRE vice chairman Brian Eisendrath used a floating rate refinance that incorporated a second floating loan to help the owner of a 12 - property portfolio reduce its spread, extend its interest term, and increase proceeds.

Mortgage lending standards were relatively unchanged during the 4th Quarter as were spreads, although average permanent mortgage interest rates increased 36 points.