Sentences with phrase «less interest rate sensitivity»
Short - term bonds have less interest rate sensitivity than long - term bonds.
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Offers even less interest rate sensitivity than short - term bonds by targeting a duration of zero
Given the rising interest rate environment as a result of stronger economic growth, they believe that, in the current market, positioning the fund along the intermediate portion of the yield curve provides investors less interest rate sensitivity than longer duration portfolios.
If you are concerned about rising rates, you should consider an investment with less interest rate sensitivity.
If you are concerned about rising rates, you should consider an investment with less interest rate sensitivity.
Not exact matches
As these bonds move toward maturity, the fund's overall interest rate sensitivity gradually declines since bonds with shorter maturities tend to be less sensitive to interest rate changes.
Since changes in interest rates impact bond funds differently than bonds and CDs, estimates of price sensitivity may be less accurate the larger the shift in interest rates.
For investors seeking low volatility and less interest - rate sensitivity, the PowerShares S&P 500 ex-Rate Sensitive Low Volatility ETF (XRLV D - 70) offers an interesting opportunity.
«But it has less sensitivity to market changes and interest rates.»
While it is understandable that market participants are concerned about interest rate risk in a rising rate environment, it is interesting to note that the high yield bond sector stands out within the fixed income market with less rate sensitivity.
High yield bonds have more interest rate sensitivity with duration of just less than 5 years and an average maturity of 6.8 years.
High - yield municipal bonds have generally provided less interest - rate sensitivity and higher income relative to higher - quality muni bonds.
Bond duration, which measures the sensitivity of a bond price to changes in interest rates, demonstrates that prices change less for closer maturity dates.
If a less specific group of bonds can be delivered to create a new unit, i.e., the bonds must satisfy certain constraints on issuer percentages, issue sizes, duration [interest rate sensitivity], convexity [sensitivity to interest rate sensitivity], sector percentages, option - adjusted spread / yield, etc., then arbitrage can proceed more rapidly, and premiums over NAV should be smaller.