Fixed income investors have essentially given up on inflation ever coming back since little upside risk of that happening is currently priced
into interest rate markets.
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.
Interest rates have remained at unprecedented lows since the financial crisis in 2008, providing more incentive for Canadians to jump
into the housing
market.
The Federal Open
Markets Committee will release the minutes from its Sept. 16 - 17 meeting, providing more insight
into the deliberations that went
into putting off the
interest rate hike.
The bond buy - backs are a component of the Fed's quantitative easing program, whose goal is to inject liquidity
into markets and keep
interest rates low.
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and
markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial
market conditions, fluctuations in commodity prices,
interest rates and foreign currency exchange
rates, levels of end
market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses
into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit
market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including
market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general
market conditions, global trade policies and currency exchange
rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the
market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
A softening in euro zone economic data and signs that inflationary pressures remain subdued, encouraging the European Central to hold off from raising
interest rates until well
into 2019, have supported bond
markets in recent weeks.
Also, Ablin added a large portion of the recent rally involved a rotation from bonds
into stocks as low
interest rates forced investors to seek yield in the stock
market.
But concerns the Fed may increase
interest rates sooner than expected following last week's strong jobs report are starting to creep
into the
market.
«Additionally,» it says, «these
markets are continuing to draw
interest from a younger crowd, as the older millennial age group is viewing property listings at a
rate 1.2 times greater than the share of older millennials already living in the area, indicating strong
interest from others wanting to move
into these neighborhoods.»
The back - story is now familiar: the lowest
interest rates since the 1960s that prevailed in the aftermath of 9 - 11 reduced the cost of holding a mortgage, and led many people to buy
into the real estate
market.
-LSB-...] See also: How
interest rates affect the behavior gap & How the
markets tempt us
into making mistakes -LSB-...]
This allows bond fund managers to reinvest maturing bond proceeds
into the new
market interest rates.
In addition, the Federal Reserve developed a term deposit facility to drain banks» reserve balances.14 This playbook of draining reserves back to reserve scarcity to support the transmission of
interest on reserves
into market rates is standard among central banks.
Fewer homebuyers jumped
into the mortgage
market last week even though
interest rates hit their lowest levels since November.
This was the lesson taught by William Petty in the 17th century and used by economists ever since: The
market price of land, a government bond or other security is calculated by dividing its expected income stream by the going
rate of
interest — that is, «capitalizing» its rent (or any other flow of income)
into what a bank would lend.
«The energy sector posted stronger returns in September due to a rebound in oil prices which helped lift Canadian equities, while the bond
market slipped
into negative territory after strong Canadian economic growth led the Bank of Canada to raise
interest rates for the first time in seven years,» said James Rausch, Head of Client Coverage, Canada, RBC Investor & Treasury Services.
Have you taken
into account the effects that
market movements, inflation, and rising
interest rates could have on your income plan?
This could lead to select opportunities among Energy, Technology, and Financials stocks in the U.S.. However, any notable economic improvements could close the window on such opportunities, and lead to higher short - term
interest rates in the U.S. sooner than is currently priced
into the
markets.
Although the largesse is restricted to blue - chip eurozone companies such as food producer Danone or telecoms giant Telefónica, ECB - injected liquidity has spilled
into the rest of the
market, paring average
interest rates on investment - grade corporate debt by some 30 basis points to an even 1 %, Deloitte estimates.
Retail investors turned net redeemers from Emerging
Markets Bond Funds going
into the final week of April, and Frontier
Markets Bond Funds posted their first outflow since mid-December as fears of a more rapid pace for U.S.
interest rate hikes cooled appetites for this asset class.
Interest rates have continued to be pushed lower and lower and lower and most of this is because the Fed keeps on adjusting that federal fund's rate and adjusting interest rates down in the way that they do that is by putting cash into the market and buying back bonds or short - term bonds with the federal fund
Interest rates have continued to be pushed lower and lower and lower and most of this is because the Fed keeps on adjusting that federal fund's
rate and adjusting
interest rates down in the way that they do that is by putting cash into the market and buying back bonds or short - term bonds with the federal fund
interest rates down in the way that they do that is by putting cash
into the
market and buying back bonds or short - term bonds with the federal fund's
rate.
Considering the paltry yields in most corners of the fixed - income
markets, avoiding commissions for investors looking to reduce
interest rate risk by going
into funds like (NYSEArca: FLOT), (NYSEArca: ISTB) or (NYSEArca: SHY) will definitely help a lot.
In addition to near zero
interest rates, central banks created excessive amounts of money by issuing trillions of dollars of bonds, e.g. QE1, QE2, QE3, QE4, etc. pushing unprecedented amounts of newly created money
into global
markets to contain the growing deflationary threat; and, while it failed to contain deflation, the excessive liquidity is now circulating in
markets with no place to go, akin to moribund monetary edema.
The Fed's statement following its March meeting suggested to us it was unlikely to be hurried
into any further
interest -
rate hikes by a single piece of inflation or employment data crossing a particular threshold and instead would make a wider judgement on the appropriate setting for monetary policy, based on a range of readings across the economy and financial
markets.
Our sense is that the latter event is already priced
into the
market, as the consensus among economists the last few months is that the central bank will raise
interest rates by 25 basis points on Wednesday.
This lends itself to a simple strategy of buying growth stocks after the
market has crashed and for several years
into a recovery, then shifting to value stocks as
interest rates rise and the economic cycle ages.
If you want that money to be readily available, you'll siphon it
into a money
market fund whose
interest rate is kissing zero.
With
interest rates on low - risk investments falling to low levels in many countries, investors have sought to maintain yields by moving
into higher - risk assets such as corporate debt and emerging
market debt.
Global macro overview for 29/01/2016: The Japanese yen has fallen sharply on Friday after the Bank of Japan shocked financial
markets by lowering
interest rates into negative territory from 0.10 % to -0.10 %.
At higher
interest rates, banks would have more options to generate returns while taking less risk (Federal Reserve's ultra-low
rates have pushed financial
market participants
into riskier behaviors such as taking higher
interest rate risk, credit risk, etc):
Today's low - to - negative
interest rate world has sent investors searching far flung corners of the
market for yield, driving flows
into a range of once obscure, high - yielding asset classes.
An ISA (Individual Savings Account) can either be a cash ISA (an account which earns
interest at a set
rate) or a stocks and shares ISA (you put your money
into pooled investments linked to the
market).
Even more disconcerting is the fact that the relative strength of the XHB has remained below its falling 200 - day moving average in spite of the broader equity
market recovery and the fact that the Fed has backed off its hawkish
interest rate stance — two things that would normally translate
into higher confidence for homebuilders.
That adds to a downside bias since 2013's «taper tantrum» that sparked capital flows out of emerging
markets and
into the U.S. as investors began to grasp that the post-financial crisis era of ultra-low U.S.
interest rates was drawing to a close.
It appears that what happened is that the Federal Reserve stepped in and pumped money
into the stock
market and then kept
interest rates low in an effort to keep us from falling
into the Second Great Depression.
You pay
into the pension fund, but you receive whatever the stock
market and
interest rates will allow when it comes time to receive your pension.
The boom is, in essence, a response to today's extraordinarily low
interest rates, which have translated
into abundant liquidity for corporations seeking to borrow cheaply in the capital
markets.
And we have the ECB [European Central Bank], again, likely to tell us what their plans are and not for selling bonds back
into the
market, I think not at this stage for changing their
interest rate policy, but again, slowing the
rates of purchase of bonds.
By taking a deeper look; we can break apart the total yield on the US government 30 year bond (Chart: light blue data)
into its two parts: (1) the
market's estimate of the inflation
rate (Chart: green data) and (2) the resulting «real» (after inflation)
rate of
interest (Chart: dark blue data).
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.
People say that we're not going to have a bear
market until the economy goes
into a recession and I argue that it's going to be the rise in
interest rates that leads to a decline in stocks that then leads to the recession.
So while low and negative
interest rates across the globe has inspired flows
into stocks, emerging
market bonds and corporate credit in search of higher yields, keep in mind the high correlations of these assets to oil prices and the advantages of holding actual diversifiers in your portfolio to smooth the ride.
I think as long as
interest rates rise on a measured basis, that's probably priced
into the
market at this point.
U.S. investors are using currency forwards to turn negative
rates into surging returns
Rising interest rates were supposed to suck money back into U.S. markets.
S3 Partners» BLACK APP 2.0 provides the buy - side and sell - side with real - time short
interest, authoritative securities finance
rates and search capabilities
into the traditionally opaque securities lending
market... continued
Interest rates on home equity loans are normally low, making such a loan a viable way to get
into the
market.
Mike Fratantoni, MBA's vice president of research and economics, said the index dropped to its lowest «in more than a dozen years... as
interest rates increased going
into today's Federal Open
Market Committee meeting.»
Rising
interest rates were supposed to suck money back
into U.S.
markets.
The head of Australia's largest agricultural lender, National Australia Bank's Khan Horne, says the rural property
market is running hotter than ever before because of strong fundamentals and low
interest rates but, with a royal commission
into banking, he is calling on tighter qualifications for anyone lending to farmers to avoid failures and receiverships that have tainted the sector.