Sentences with phrase «interest rate exposure»

In a subsequent blog, we will explore an alternative low volatility index strategy that is designed to reduce interest rate exposure while still preserving low volatility properties.

Generally, many mutual fund companies prefer to establish interest rates exposure via derivatives.

In a previous blog, we performed preliminary exploration of rising interest rate exposure of the S&P 500 ® Low Volatility Index.

If your business is considering funding for important projects this year, you may be considering ways to hedge interest rate exposure.

By Phillip Brzenk

In a previous blog, we performed preliminary exploration of rising interest rate exposure of the S&P 500 Low Volatility Index.

AMG Managers DoubleLine Core Plus Bond Fund is a total return oriented portfolio invested across multiple asset classes, including non-core areas such as high yield, emerging markets and bank loans, to help manage interest rate exposure.

We like inflation - protected Treasuries (TIPS) instead of nominal bonds, favor shortening interest rate exposure and favor more corporate credit.

In buying foreign issues and hedging back into Canadian interest rate exposures, the investor takes greater risks than the credit risk of the particular issuer.

The hardwired portfolio response in this state is to de-emphasize interest rate exposure and to increase exposure to equity and inflation - sensitive investments.

Investors can indeed establish interest rates exposure via multiple instruments, such as interest rate swap, Treasury futures, or nominal (cash) Treasury notes and bonds.

CME will launch its Ultra 10 - year futures (TN) in January 2016 to fill the gap, but until then, investors will have to use a 7 + year futures instrument as a proxy to establish 10 year interest rate exposure — the slippage is real, as 7 and 10 years are considered two separate tenors (with different sensitivity toward central bank policy and risk sentiment).

Not so commonly discussed are collars designed to manage the type of interest rate exposure present in adjustable - rate mortgages (ARMs).

As yields on 10 - year U.S. government bonds declined about 85 basis points in 2014, «by having less interest rate exposure, they didn't benefit as much,» Todd Rosenbluth, director of mutual - fund research for S&P Capital IQ in New York, said in a telephone interview.

Analyze the all - in costs of using exchange - traded futures versus OTC instruments for interest rate exposure.

«Given the massive refinancing currently under extension and the variable interest rate exposure, Centro's cost of debt and therefore interest expense is at risk of blowing out,» he wrote on May 9.

In a previous blog, we performed preliminary exploration of rising interest rate exposure of the S&P 500 ® Low Volatility Index.

It is possible that Canadian pension plans will extend their fixed income mandates into foreign issuers by allowing hedging back to Canadian interest rate exposure.

In other words, when markets are volatile and there are worries about a recession, interest rate exposure can help offset credit risk in a fixed income portfolio.

The Fund also has the ability to increase the interest rate exposure of its portfolio through limited purchases of Treasury zero - coupon securities and STRIPS.

This poses a dilemma for investors: Accept lower returns or dial up risk by taking more equity, credit and interest rate exposure.

Part of the reason for this outperformance is that hedge funds generally have very low duration and often reduce their interest rate exposure through swaps or other derivatives.

In order to reduce the impact of rising rates on borrowing costs, companies should develop and implement a comprehensive plan to manage their interest rate exposure.

In April, the long end of the yield curve underperformed, and as municipal bonds have more of their interest rate exposure coming from the long end, this contributed to their underperformance.

The counterparties to these products would still need derivatives that reference BBSW so that they can hedge their interest rate exposures.

One way to help protect from unexpected interest rate moves is to diversify the interest rate exposure that is at the center of any fixed income portfolio.

HASI's growth in Core Earnings will be in addition to the growth produced to offset higher interest expense as a result of fixing substantially all interest rate exposure.

For this reason, we recently suggested investors consider adding back some interest rate exposure into portfolios, as a hedge against equity risk.

Interest rates can't be predicted, but Webster helps you find ways to reduce, eliminate, or offset your interest rate exposure.

One way to help protect from unexpected interest rate moves is to diversify the interest rate exposure that is at the center of any fixed income portfolio.

In other words, when markets are volatile and there are worries about a recession, interest rate exposure can help offset credit risk in a fixed income portfolio.

There are a couple other intermediate - term bond funds that have recently shortened their interest rate exposures enough to be considered short - term, but since that's a purely tactical move, we excluded them.

In addition, in anticipation of higher rates, many banks have begun to reposition their balance sheets toward variable rate loans, so they won't be locked into low interest rates, and they're hedging their interest rate exposure, according to banks» most recent earnings reports and earnings calls with analysts.

As we approach year end, we have increased hedging of our risk assets and interest rate exposures.

Although they might restrict foreign currency and interest rate exposure, Canadian retirement and pension plan sponsors no longer will require their bond managers to restrict their portfolios to Canadian issuers.

Conclusion The rate path remains far from clear, but recent upward pressure on yields may have investors looking to decrease their interest rate exposure.

And so maybe the interest rate exposure of that portfolio is three or four years, as opposed to a 10 year Treasury, which has an interest rate exposure of nine and a half years.

Consider holding broadly diversified fixed income portfolios without tilting too heavily in favor of credit or interest rate exposure.

Many of the REITs are hedging or have already hedged a portion of their interest rate exposure to minimise their risk in an increasing interest rate environment.