Sentences with phrase «over interest rate risk»

The last few years we've seen historically low - interest rates and a rising concern over interest rate risk.

J.P. @ Novel Investor writes Risk Basics: Understanding Interest Rate Risk — The last few years we've seen historically low - interest rates and a rising concern over interest rate risk.

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.

However, rates have retreated from over 8 percent in the last several weeks, and the credit risk of high - yield bonds can offer some diversification from the interest - rate risk of a portfolio of Treasury bonds.

To be sure, low interest rates mean that annuity payments, including those from QLACs, are relatively modest now and investors run the risk that inflation will eat away at payouts over time.

«With individual bonds, you have more control over interest - rate risk,» Shagawat said.

We also argued that if real long - term risk free interest rates stayed below historical norms when QE stopped, then a PE over 16x trailing EPS would be fair.

When rates are rising interest rate risk is higher for lenders since they have foregone profits from issuing fixed - rate mortgage loans that could be earning higher interest over time in a variable rate scenario.

The risk premium is far from stable over time, but it's reasonable to assume that lower interest rates should -LSB-...]

I don't know exactly what's going to happen, but simple math based on the current level of interest rates leads me to believe that these risk premiums will be much wider in the future over longer time frames than they've been in the recent past.

Nonetheless, the retreat from the extreme risk aversion of nine months ago, the partial recovery of household net worth and the impact of low interest rates will offer support to private demand over the period ahead.

However, there is the risk that the variable interest rate will be much higher if the average student loan interest rate has risen significantly after the set period of time is over.

Yet another critical factor is often overlooked in explanations of low interest rates: a structural rise in risk aversion and savings over the past two decades.

The thrust of his argument is that interest rates need to go up as the Fed's been «adding enormous policy accommodation over the past several years» and, even while they've long been missing their inflation target on the downside, there's a risk of getting «significantly behind the curve.»

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.

Each account is diversified across a variety of sectors and maturities to help ensure it is not concentrated in any one area, can better handle changes in interest rates, and can potentially help reduce overall risk to principal over the long - term.

«Laddering bonds may be appealing because it may help you to manage interest rate risk, and to make ongoing reinvestment decisions over time, giving you the flexibility to invest in different credit and interest rate environments,» says Richard Carter, Fidelity vice president of fixed income products and services.

This is because interest rate changes have their largest effect on inflation risk, while stronger macroprudential settings will lead to a higher quality of household indebtedness over time.

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.

Generally, you calculate the hurdle rate by adding together the risk - free interest rate, a measure of inflation expectations over the life of the project and a premium to compensate for the investment's risk.

In the most recent period, following the tightening of monetary policy in May, market interest rates declined for a time as participants assessed that the cumulative tightening over the previous six months might have been sufficient to reduce the risks on inflation.

Indicator rates on variable - rate business loans have been largely unchanged over the past six months, although the average interest rate paid by small business borrowers on variable - rate loans — which includes indicator rates plus applicable risk margins — has continued to fall.

Although it makes sense to me to use bonds to try to reduce risks and volatility, what about the possible downward slide of bond values as interest rates rise over the next few years?

In my view, investors who view current valuations as «justified relative to interest rates» are really saying that a decade of zero total returns on stocks is perfectly adequate compensation for the risk of a 45 - 55 % market loss over the completion of the current market cycle - a decline that would historically be merely run - of - the - mill given current valuations, and that certainly can not be precluded by appealing to low interest rates.

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

Businesses all over the world try to reduce risk that is connected with changes in currency values, stock prices, and interest rates.

But the roots are global as well and at least one of the roots is financial repression which is the major central bank's policies over the last nine years of recovery to drop interest rates to zero to buy risk assets, to push investors into risk assets and generate a lot of liquidity and credit.

Given that China has higher interest rates than the US, in the absence of expectations of a change in the target exchange rate one would expect the forward exchange rate (expressed as yuan per US dollar) to be higher than the spot exchange rate so as to eliminate the possibility of earning a risk - free profit over the term of the contract.

Given the risks and uncertainties, especially over the medium term the interest rate profile presented in the Update appears overly optimistic.

These loans typically have lower interest rates than payday loans because they are designed to be paid back over a number of years, and they are lower risk for the lender.

The paperwork required for such loans are a bit more cumbersome and the interest rates charged on these loans are a tad higher (0.25 % - 0.5 % over regular home loan interest rates) given that the risk factor for the bank is higher.

I'm not sure Hussman's chart proves anything at all, except that interest rates, risk premia and actual returns can vary over time — hardly a profound realization.

And even if you decide to go ahead, you may want to «annuitize» gradually, spreading your money among annuities from a few different highly rated insurers over a period of several years, to avoid the risk of investing all your dough when interest rates and annuity payments are at or near a low.

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.

Each account is diversified across a variety of sectors and maturities to help ensure it is not concentrated in any one area, can better handle changes in interest rates, and can potentially help reduce overall risk to principal over the long - term.

What high risk lenders and credit card dealers that charge interests rates over 18 % take advantage of is the fact that most students have cash flow problems.

The «dividend» is reset quarterly at a contractual spread over LIBOR (or some other index), thus interest rate risk discussed in the article is avoided.

While negative numbers are seen across the board, the above table of duration and return doesn't truly highlight the magnitude of interest rate risk hanging over the market.

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.

Low interest rates over the past decade have driven many to abandon secure FDIC insured savings, Treasury Bills and Notes for higher risk investments such as stocks, ETFs, and mutual funds.

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.

However, that small extra effort should translate over time into higher overall interest rates with little additional risk.

But by buying in stages — say, annuitizing $ 300,000 with separate $ 100,000 purchases over a few years rather than investing the entire three hundred grand in one shot — you can at least diversify against the risk of putting all your money into annuities when interest rates are at a low.

the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event, generally expressed as an annual percentage of the bond's face value; for example, a bond with a 10 % coupon will pay $ 100 per $ 1000 of the bond's face value per year, subject to credit risk; when searching Fidelity's secondary market fixed income offerings, customers can enter a minimum coupon, maximum coupon, or enter both to specify a range and refine their search; when viewing Fidelity's fixed - income search results pages, the term «Step - Up» instead of a numeric coupon rate means the coupon will step up, or increase over time at pre-determined rates and dates in the future; clicking Step - Up will reveal the step - up schedule for that security

Study participants were asked five questions covering aspects of economics and finance encountered in everyday life, such as compound interest, inflation, principles relating to risk and diversification, the relationship between bond prices and interest rates, and the impact that a shorter term can have on total interest payments over the life of a mortgage.

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 changes in monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry.

That's the power of bonds returning 3 % at best over the forecast horizon, unless interest rates jump, and then we have other problems, like risk assets repricing.

We believe the bond market is very efficient in discounting risk and return potential over time and in taking interest rate risk along the duration curve.

One purchasing strategy is to buy annuities over a period of years, to minimize «interest rate risk», but that's beyond the scope of this overview.

Callable agency bonds with «step up» coupon rates: callable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors over time.