Sentences with phrase «intermediate term rates»

In other words, they expect intermediate term rates will climb in 2015, and yet, the projections merely approximate where 2013 ended.

Not exact matches

Funds can also have different levels of interest rate sensitivity depending on whether they focus their investments on short, intermediate, or long - term bonds.

Long bonds will end up being a very volatile investment at some point once rates or inflation rise from current levels, but intermediate - term bonds should continue to dampen stock market volatility.

As of January 2013, intermediate - term real interest rates are about 4 % less than their historical average.

Despite the Fed's 25 basis point rate hike, intermediate term investment grade bonds (Corporates and Munis) still squeaked out positive returns in Q1.

For example, if inflation and interest rates increase rapidly soon, it may be prudent to add more bonds to your portfolio or replace cash ballast with intermediate term bonds.

Specifically, they relate spot West Texas Intermediate (WTI) crude oil price to: the U.S. dollar exchange rate versus a basket of developed market currencies; Dow Jones Industrial Average (DJIA) return; U.S. short - term interest rate; the S&P 500 options - implied volatility index (VIX); and, open interest in the NYMEX crude oil futures (as an indication of financialization of the oil market).

Finally, in our view, opportunities do continue to present themselves over the short - to - intermediate term in fixed income; longer term, we are cognizant that there could well be some rate risk down the line driven by inflation.

However, assuming rates do rise over the intermediate to long - term, there can be tremendous opportunity cost in owning bonds with low coupons and lengthy maturity.

We continue to have a very positive fundamental intermediate - term view, but believe (1) the improved economic data, (2) fear of higher interest rates, (3) a less dovish Fed, (4) historically low volatility, and extreme overbought condition creates an environment ripe for a correction.

When the Fed raises short - term rates — or when it is expected to do so in the future — intermediate and longer - term rates also tend to go up.

Neutral or even long intermediate and long - term rates to reflect expectations that policy tightening would achieve the goal of bring down long - term inflation

Equally important, even during extended speculative periods as we observed in the late - 1990's, those advances have tended to suffer deep and abrupt intermediate - term corrections once elevated valuations are joined by overbought conditions, overbullish sentiment, and rising interest rates, as we observe today.

It should also be noted that short - term, intermediate - term and long - term interest rates may not rise or fall at the same pace as one another.

As for bonds, you want to own both government and high - quality corporate issues in a range of maturities (although, to protect yourself against the possibility of rising rates, you'll want to keep the average maturity of your overall holdings in the short - to intermediate - term range).

Low intermediate term interest rates in the US portend bad returns from investing in US Dollar denominated debt, so the US Dollar declines.

With short - term bond fund rates between 0.5 % and 2 %, and intermediate - term bond fund rates between 1.5 % and 3.3 %, there is plenty of downside risk due to the potential for higher future interest rates (bond prices fall when interest rates rise), and not much upside potential due to the current low rates.

The Ally 5 year CD gives you a guaranteed rate of return in the range of an intermediate - term bond fund, with much less risk than a short - term bond fund.

To illustrate, assume intermediate - term interest rates steadily increase by 1 % over the next year.

If interest rates were to rise only 1 %, the value of a typical short - term bond fund would decrease by about 2 %, and the value of a typical intermediate - term bond fund would decrease by about 5 %.

With money market rates close to 0 %, short - term bond rates between 0.3 % (treasuries) and 1.75 % (investment grade), and intermediate - term bond rates between 1.3 % (treasuries) and 3.1 % (investment grade), the PenFed 7 - year CD rate of 3.5 % is very good.

The metrics that track some of these trends - the level of profit margins in relation to sales growth, sector valuation, and a downward drifting earnings surprise rate - are currently highlighting potential intermediate - term risks on the earnings front.

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Recall that the yield curve describes the difference between short - term, intermediate, and long term interest rates.

The Fund received a rating of 5 stars for the 3 - year period, rated against 837 Intermediate - Term Bond funds.

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.

Last year, I had combined intermediate term timing with a dividend strategy to lift the continuing withdrawal rate to 5.4 % (plus inflation) under realistic assumptions or 4.8 % (plus inflation) using highly conservative assumptions.

Focusing on dividends, timing the market on an INTERMEDIATE TERM basis (not in terms of only two or three years), and shunning stock sales lifts the continuing withdrawal rate above 6 % (plus inflation).

So a short - term bond fund will not be subject to large gains or losses due to rate changes, an intermediate - term bond fund will be subject to moderate gains or losses, and a long - term bond fund will be subject to the largest gains or losses.

We group funds by duration, separating short - term funds from intermediate - and long - term funds, to make it easy for investors to find bond funds that have a lower duration — and thus lower interest rate risk.

Key credit spreads were widening, such as those between intermediate - term treasury bonds and riskier corporate bonds in funds like iShares Baa - Ba Rated Corporate Bond ETF (BATS: QLTB) or SPDR High Yield Bond (JNK).

Both long - term and intermediate - term Treasury ETFs produced total returns in the 4 % to 5 % range, with only minimal price appreciation as declines in rates slowed compared to 2011.

Market - based systems are not fit for use by regulators, because ratings are supposed to be like fundamental investors, and think through the intermediate - term.

The Fund invests primarily in real return instruments, including short - and intermediate - term TIPS, as well as floating - rate loans, asset - backed securities (ABS) and commercial mortgage - backed securities (CMBS) where interest payments on the floating - rate loans and ABS / CMBS are swapped for those based on changes in the U.S. Consumer Price Index (CPI).

Since short - and intermediate - term TIPS, as well as the floating - rate loans and the ABS / CMBS swapped for CPI, receive the same inflation adjustment as other, longer - dated inflation - linked securities, they may be able to provide similar protection from inflation, but with less interest rate risk.

They are portrayed as conservative intermediate to long - term government or AAA rated bonds used for security, spewing out returns that barely keep up with inflation.

If interest rates rise from current levels, intermediate and long - term bonds would suffer substantial losses.

As long as rate increases are gradual, short - and intermediate - term municipal bonds are not likely to disappoint market participants.

The fact that the Federal Reserve is raising its overnight lending rate and seeing little reaction from the yields of intermediate and longer - term bonds is an indication that bond investors do not believe in the strength of the economic outlook going forward.

ABDLX was rated 4, 4 and 4 stars for the Overall, 3 - and 5 - year periods against 847, 847, and 778 Intermediate - Term Bond funds, respectively.

As of 12/31/17, ADLIX was rated 5, 5 and 5 stars for the Overall, 3 - and 5 - year periods against 847, 847, and 778 Intermediate - Term Bond funds, respectively.

Managers in the intermediate - term actively managed bond category saw the most substantial improvement in their one - year success rate; 85 % of these funds survived and outperformed their passive peers.

As of 03/31/18, ADBLX was rated 4, 4 and 4 stars for the Overall, 3 - and 5 - year periods against 858, 858, and 784 Intermediate - Term Bond funds, respectively.

Here's a way to think about it: if the company borrowed money over the intermediate - term from a bank, or floated a bond, what kind of rate would they pay?

He figures that if he compounds net worth at an above average rate, he will beat the market returns of the S&P 500 over the intermediate term.

«Intermediate - term bonds are struggling this year as rates rise,» Janet said.

The combination of these two events means that the yield curve should steepen with anchored short - term rates and increasing intermediate to long term rates.

The investment manager for the stable value fund invests in a portfolio of intermediate term bonds with an average duration of approximately three to four years that will provide a significantly higher interest rate, or yield, than for example the short - term (average 60 days or less) securities typically held by a money market fund.

At the same time, some countries in Europe and Japan were issuing short and even intermediate term bonds with negative interest rates to stimulate their economies.

As noted in Article 6.2, the strategies of either using intermediate term individual bonds or bond funds are likely to provide low returns, at least until after interest rates have risen somewhat.