Sentences with phrase «mitigate interest rate risk»

For some additional spread several life companies can provide forward rate locks to help mitigate interest rate risk.

Analyze, build and test investment models that simulate the usage of different derivative strategies to mitigate interest rate risk and cash flow mismatches

Building GIC ladders mitigate interest rate risk since I always have funds to invest into the highest rate each month.

The investment seeks to mitigate the interest rate risk of a portfolio composed of investment - grade U.S. corporate bonds and U.S. dollar - denominated bonds.

While shortening duration can help mitigate interest rate risk, another approach to consider is one that balances exposure to the very front end of the curve with exposure to intermediate maturities for additional yield potential and lower volatility, given that rates are likely to rise slowly and stay historically low for the foreseeable future.

To endeavour to mitigate interest rate risk and seek to generate regular income along with opportunities for capital appreciation through a portfolio investing in Floating Rate debt securities, fixed rate securities, derivative instruments as well as in Money Market instruments.

Floating - rate securities are designed to mitigate interest rate risk by regularly adjusting to keep pace with the movements of short - term rates.

While shortening duration can help mitigate interest rate risk, another approach to consider is one that balances exposure to the very front end of the curve with exposure to intermediate maturities for additional yield potential and lower volatility, given that rates are likely to rise slowly and stay historically low for the foreseeable future.

Not exact matches

And should interest rates rise a little over the next five years, these funds could be held in safe investments also mitigating inflation risk?

The iShares Interest Rate Hedged High Yield Bond ETF is an actively managed fund - of - funds that targets USD - denominated corporate high - yield bonds while mitigating interest - raInterest Rate Hedged High Yield Bond ETF is an actively managed fund - of - funds that targets USD - denominated corporate high - yield bonds while mitigating interest - rate rRate Hedged High Yield Bond ETF is an actively managed fund - of - funds that targets USD - denominated corporate high - yield bonds while mitigating interest - rainterest - rate rrate risk.

They understand how to potentially mitigate the impact of market volatility brought on by interest rate risk.

To mitigate the risks that are attached to these loans, creditor end up applying huge interest rates on bad credit loans guaranteed approval decision.

In addition, you mitigate any interest - rate risk during construction because your loan is locked up - front at the time of closing and construction.

Investment adviser Kelly Gares of BlueShore Financial in West Vancouver, B.C., says one way to mitigate the risk of rising interest rates on bonds is to hold bonds that are close to their maturity date or ones with a short duration.

Lenders mitigate that risk with tougher qualifying criteria and higher interest rates.

Investors could also construct a bond ladder to increase diversification and mitigate credit risk by purchasing bonds with different interest rates and maturity dates.

The short positions are not intended to mitigate other factors influencing the price of high yield bonds, such as credit risk, which may have a greater impact than rising or falling interest rates.

The card company is assuming a risk by issuing the credit, and it mitigates that risk by charging high interest rates.

In addition to higher interest rates compared to banks, home equity lenders try to mitigate risk by giving a registered mortgage.

IGHG and HYHG do not attempt to mitigate factors other than rising Treasury interest rates that impact the price and yield of corporate bonds, such as changes to the market's perceived underlying credit risk of the corporate entity.

To mitigate this risk we rebalance our bond portfolios to account for how risky the bond piece is at times during the interest rate cycle.

The short positions are not intended to mitigate credit risk or other factors influencing the price of the bonds, which may have a greater impact than rising or falling interest rates.

I took the opportunity to capital loss harvest some bonds and ultimately replaced with some VBIRX, short - term maturity bonds, hoping to mitigate some of the interest rate risk.

The other issue is interest rate risk which I mitigate by building 5 year duration GICs.

This poses downside risk for bond prices, so the Fund has been positioned in very low duration and short maturity bonds to mitigate downside risk when interest rates rise.

However, this risk is mitigated by the likelihood of lower interest rates, which makes dividend yields more attractive.

This poses downside risk for bond prices, so the Fund has been positioned in very low duration and short maturity bonds to mitigate downside risk should interest rates rise.

The index does not attempt to mitigate other factors influencing the price of high yield bonds, such as credit risk, which may have a greater impact on high yield bond prices than changes in interest rates.

mREITs typically manage and mitigate risk associated with their short - term borrowings through conventional, widely - used hedging strategies, including interest rate swaps, swaptions, interest rate collars, caps or floors and other financial futures contracts.

Interest rate risk is mitigated by avoiding a large exposure to long - term bonds, whose value is most sensitive to changes in interesInterest rate risk is mitigated by avoiding a large exposure to long - term bonds, whose value is most sensitive to changes in interestinterest rates.

The short positions are not intended to mitigate other factors influencing the price of investment grade bonds, such as credit risk, which may have a greater impact than rising or falling interest rates.

mREITs typically manage and mitigate risk associated with their short - term borrowings through conventional, widely - used hedging strategies, including interest rate swaps, swaptions, interest rate collars, caps or floors and other financial futures contracts.