As we've discussed before, the duration of a bond fund is an important indicator of its risk level because the longer the duration, the more the fund's price will fluctuate as a result
of changes in market interest rates.
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.
Markets do not expect a
change in interest rates from the Federal Reserve at the conclusion
of its meeting on Wednesday, though analysts will be watching for any
change in language and indications that a June hike is likely.
the impact
of investment (including
changes in interest rates), economic (including inflation, recent
changes in tax law, rapid
changes in commodity prices and fluctuations
in foreign currency exchange
rates) and underwriting
market conditions;
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.
If
interest rates rise,
market prices
of existing bonds will typically decline, despite the lack
of change in both the coupon
rate and maturity.
Indeed,
in a classic paper written
in the early 1960s, Mundell (Mundell, 1963) showed how,
in a world
of complete asset substitutability and perfect capital mobility, real
interest rates would be largely determined by international
market forces with the exchange
rate moving
in response to
changes in domestic monetary policy to provide most
of the desired accommodation or tightening.
A number
of operational features were required to implement such an overnight reverse repo, or ON RRP, facility: It would need same - day settlement; 16 the operation would need to be run predictably, every day, and as late
in the day as possible, to give lenders time to bargain with other counterparties using the outside option
of investing with the Federal Reserve; 17 an appropriate spread below IOR would be required to ensure that the facility neither induced large
changes in the structure
of money
markets nor lost the ability to support
interest rate control; 18 and the operations would need enough unused capacity that lenders could credibly propose to leave borrowers that did not offer an adequate
interest rate.19
Factors that could cause or contribute to actual results differing from our forward - looking statements include risks relating to: failure
of DBRS to
rate the Notes at the anticipated
ratings levels, which is a closing condition, or at all;
changes in the financial
markets, including
changes in credit
markets,
interest rates, securitization
markets generally and our proposed securitization
in particular; the willingness
of investors to buy the Notes; adverse developments regarding OnDeck, its business or the online or broader marketplace lending industry generally, any
of which could impact what credit
ratings, if any, are issued with respect to the Notes; the extended settlement cycle for the scheduled closing on April 17, 2018, which may exacerbate the foregoing risks; and other risks, including those described
in our Annual Report on Form 10 - K for the year ended December 31, 2017 and
in other documents that we file with the Securities and Exchange Commission from time to time which are or will be available on the Commission's website at www.sec.gov.
In theory, you could hold an individual bond to maturity and never lose any money even though the
market value
of the bond may fluctuate based on
changing interest rates and other factors (but you could still lose out to inflation over time).
Performance
of companies
in the financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit
rating downgrades,
changes in interest rates, and decreased liquidity
in credit
markets.
Consider these risks before investing: The value
of securities
in the fund's portfolio may fall or fail to rise over extended periods
of time for a variety
of reasons, including general financial
market conditions,
changing market perceptions,
changes in government intervention
in the financial
markets, and factors related to a specific issuer, industry, or sector and,
in the case
of bonds, perceptions about the risk
of default and expectations about
changes in monetary policy or
interest rates.
Investment volatility
in these types
of private real estate investments is limited to
changes in net asset value and
interest rate unlike public REITs, which are also subject to stock
market volatility, which moves independently
of the other two factors.
I have used a fall
in exports to show how constrained Beijing's policy choices are, but I could just have easily done the same using as an example any
change in the currency regime, the reform
of the hukou system, the de-industrialization
of the bankrupt northeast provinces, the development
of the OBOR and Silk Road projects,
changes in interest rates or minimum reserves, protecting the stock
market from crashing, the provincial bond swaps,
changes in the tax regime, improving energy and environmental policies, and so on.
Because credit and default risk are the dominant drivers
of valuations
of high yield bonds,
changes in market interest rates are relatively less important.
These risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation
of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature
of the restaurant industry; factors impacting our ability to drive sales growth; the impact
of indebtedness we incurred
in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack
of suitable new restaurant locations; higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and
marketing costs; a failure to develop and recruit effective leaders; the price and availability
of key food products and utilities; shortages or interruptions
in the delivery
of food and other products; volatility
in the
market value
of derivatives; general macroeconomic factors, including unemployment and
interest rates; disruptions
in the financial
markets; risk
of doing business with franchisees and vendors
in foreign
markets; failure to protect our service marks or other intellectual property; a possible impairment
in the carrying value
of our goodwill or other intangible assets; a failure
of our internal controls over financial reporting or
changes in accounting standards; and other factors and uncertainties discussed from time to time
in reports filed by Darden with the Securities and Exchange Commission.
The main factor influencing financial
markets in recent months has been
changing assessments
of the timing
of the first
interest rate increase by the US Fed.
«There's been a lot
of focus on U.S.
interest rates, but
in the other main
markets, it's been pretty stable, you haven't had the big
rate changes,» he said
in an interview
in Oslo following the presentation
of the fund's first - quarter report on Friday.
«Clients need to be mindful
of changes in the
rates»
market dynamics,» says Antoine Jacquemin, deputy head
of Western - Europe foreign exchange and
interest -
rate derivatives corporate sales at Societe Generale,
in Paris.
Market commentators ascribed this
change to many factors, but trade war fears, a hint
of increase
in the
rate of inflation and rising
interest rates almost certainly contributed.
The housing
market, meanwhile, «finally entered the early stages
of a cooling phase
in mid-2017 after the impact
of changes to regulations and rising
interest rates took root.
The values
of money
market investments usually rise and fall
in response to
changes in interest rates.
While the
market value
of a floater under normal circumstances is relatively insensitive to
changes in interest rates, the income received is,
of course, highly dependent upon the level
of the reference
rate over the life
of the investment.
While equity
market movements are driven largely by the strength
of economic growth, fixed income
markets hinge on
changes in interest rates and inflation.
In a perfect world stock
market - to - gold ratios, long - term
interest rates and the yield curve would work together to signal a time
of change for the macro.
Among the explanations that have been put forward are the increased credibility
of central banks
in controlling inflation (inflation
rates remain below 3 per cent across the developed world), the low level
of official
interest rates in the major economies reflecting low inflation and the continuing weakness
in some economies, a glut
of savings on world
markets particularly sourced from the Asian region, and
changes to pension fund rules
in some countries which are seen as biasing investments away from equities towards bonds.
Competition spread more openly to the
market for existing borrowers
in mid 1996 when banks cut the
interest rate on standard variable -
rate loans independently
of any effect on funding costs from a
change in monetary policy.
Other risks and uncertainties relate to NXRT's business, its industry and its common shares and include: investment risk;
changes in interest rates; risks associated with investing
in high multifamily properties; risks associated with NXRT's use
of leverage; and
market risks generally.
For that theory
of change to work, a school's
rating must trigger
market response: A school
of education that receives a high
rating should see more students apply as well as more districts
interested in partnering with the school and hiring its graduates.
While you are negotiating the terms and conditions
of your mortgage — no matter the type — lenders keep reacting to
changes in the financial
markets by
changing interest rates.
The value
of inflation - protected securities generally fluctuates with
changes in real
interest rates, and the
market for these securities may be less developed or liquid, and more volatile, than other securities
markets.
But if nothing else, the post-crisis years have shown that
changes in interest rates are just as impossible to forecast as the direction
of stock
markets.
Interest rates: Changes in the rate of interest in the investors» domestic market or foreign market may cause changes in the exchange rate due to considerable capital mo
Interest rates:
Changes in the rate of interest in the investors» domestic market or foreign market may cause changes in the exchange rate due to considerable capital mov
Changes in the
rate of interest in the investors» domestic market or foreign market may cause changes in the exchange rate due to considerable capital mo
interest in the investors» domestic
market or foreign
market may cause
changes in the exchange rate due to considerable capital mov
changes in the exchange
rate due to considerable capital movements.
The price
of a fund's shares and the cash flows you receive will depend on the bond
market's fluctuations — which are influenced by
changes in interest rates — and,
of course, the manager's skill.
Consider these risks before investing: Bond prices may fall or fail to rise over time for several reasons, including general financial
market conditions,
changing market perceptions (including perceptions about the risk
of default and expectations about monetary policy or
interest rates),
changes in government intervention
in the financial
markets, and factors related to a specific issuer or industry.
The bond
markets are extremely active, with
interest rates constantly
changing in response to a number
of factors including
changes in the supply and demand
of credit, Federal Reserve policy, fiscal policy, exchange
rates, economic conditions,
market psychology and, above all,
changes in expectations about inflation.
The
market value
of an investment
in bonds will
change according to the prevailing
interest rate environment and the perceived credit worthiness
of the borrower.
The
interest rate will adjust according to the
market value, which might imply sudden and unexpected
changes in the terms
of your loan.
He was a proponent
of the
market - driven student loan
interest rate change made
in 2013.
Asset prices may fall or fail to rise over time for several reasons, including general financial
market conditions,
changing market perceptions (including,
in the case
of bonds, perceptions about the risk
of default and expectations about monetary policy or
interest rates),
changes in government intervention
in the financial
markets, and factors related to a specific issuer, industry or commodity.
And, while it usually takes at least 12 months for any increase or decrease
in interest rates to be felt
in a widespread economic way, the
market's response to a
change (or news
of a potential
change) is often more immediate.
The term structure reflects expectations
of market participants about future
changes in interest rates and their assessment
of monetary policy conditions.
• The value
of inflation - protected securities (IPS) generally fluctuates with
changes in real
interest rates, and the
market for IPSs may be less developed or liquid, and more volatile, than other securities
markets.
Stock and bond prices may fall or fail to rise over time for several reasons, including general financial
market conditions,
changing market perceptions (including,
in the case
of bonds, perceptions about the risk
of default and expectations about monetary policy or
interest rates),
changes in government intervention
in the financial
markets, and factors related to a specific issuer or industry.
Interest rates change in response to a number
of factors —
changes in supply and demand for credit, fiscal policy, exchange
rates, economic conditions, and crucial for the bond
market,
changes in expectations
of inflation.
No bonds
of any kind can reach such a level
of growth as any price appreciation
in bonds depends on the few single - digit
changes in market interest rates.
Variable
Rate Mortgage: A mortgage in which the rate of interest changes if market conditions cha
Rate Mortgage: A mortgage
in which the
rate of interest changes if market conditions cha
rate of interest changes if
market conditions
change.
Accordingly, the price
of and the income generated by the Fund's securities may decline
in response to, among other things, adverse
changes in investor sentiment, general economic and
market conditions, regional or global instability,
interest rate fluctuations or other factors that may cause the securities
markets to decline generally.
The first set
of changes occurred
in March 2010 and was designed to reduce the
interest rate, credit and liquidity risks associated with money
market funds.
They are FDIC insured to $ 250,000 (per depositor, per federally insured institution
in interest and principal) and offer a fixed
rate of return, whereas the principal and yield
of investment securities will fluctuate with
changes in market conditions.