Sentences with phrase «rate environment»

The phrase "rate environment" refers to the overall state or condition of interest rates in a given economy or market. It describes whether interest rates are high, low, or stable at a certain time. Full definition
Stocks in the consumer discretionary sector also tend to perform well in rising interest rate environments because of the strong economy that caused the increase.
If this pressure continues, it may be time to start considering asset classes which perform well in rising rate environments.
We see this in the prolonged low interest rate environment in many developed countries, ours included.
The prolonged, extremely low interest rate environment of recent years is widely thought to be a key reason for the exits.
The buyer must still qualify for the mortgage with its existing terms but, in a rising mortgage rate environment, it can be attractive to assume a home seller's loan.
Again, not much of a difference between the rising and falling rate environments in these returns.
I think the most important assumption in this entire post is your stated belief that we will be in a low interest rate environment for years.
However, the majority of properties added to the market are vintage buildings or properties with lease terms below ten years as owners attempt to take advantage of the low cap rate environment.
Generally speaking, banks become more profitable in a rising interest rate environment as they lend out money to their customers.
In low interest rate environments with narrow credit spreads, preferred stocks behave similarly to bonds.
This can be a possibility in a declining interest rate environment where you decide to move from a fund paying decreasing levels of interest to another fund with a higher yield.
This shift was begun in anticipation of what many expect to be a rising interest - rate environment over the next several years.
Going as far back as 75 years, I can not recall a single instance of the stock market and economy crashing during a low interest rate environment like we are in now.
In a very real way, even our jobs have become more valuable in a declining interest rate environment if you can find one that pays you a steady or ever increasing amount.
In other words what does the current interest rate environment look like.
We have a very different rate environment from the last 30 or 40 years.
These investments typically perform best in a stable rate environment.
In a very low interest rate environment such as now, that means councils can lock into very low fixed rates over long periods of time.
If the interest rate environment remains historically low, more of the major term life insurance companies will be forced to increase rates.
First, a rising interest rate environment creates more demand for rental housing.
Help navigate an uncertain rate environment with active bond management.
Our analysis shows that a high interest rate environment does not necessarily have a negative impact on REIT performance.
It is the foremost authority in predicting the future rate environment.
The fixed income portion is especially troublesome in today's rising rate environment since it has way too much long duration exposure.
As for options in a rising rate environment other than just getting a fixed rate mortgage, another thing to consider is getting as long a mortgage as possible.
But more fundamentally, bonds — even in a normal rate environment — aren't really your best option as a long - term income vehicle.
Be willing to change your strategy as global markets, tax policies and interest - rate environments shift.
Today's low interest rate environment means that investors can no longer get the same rate of return they've gotten accustomed to with products like government debt and high quality corporate bonds.
In a risky rate environment, investors may want to look to individual bonds.
A low interest rate environment brings a significant benefit since it helps consumers refinance their balance sheets, lowering the cost of financing and, in theory, increasing discretionary income.
CDs generally pay a fixed rate of interest and, depending on the market rate environment, can offer a higher interest rate than other types of deposit accounts.
Here is one more concern: net investment edges on account of the augmented low premium rate environment.
Why are markets reacting so negatively to what, in most historical contexts, would have been considered a very favorable rate environment?
Due to the low interest rate environment resulting from the policies of global central bankers, major oil and natural gas stocks have become very appealing due to the high dividend yields.
It's possible we could see the interest rate environment play out as it has in the past by rising sharply or staying in a narrow band for some time to come.
As months of low rates turned into quarters and quarters into years, a near zero interest rate environment became the norm, rather than the exception.
It is just to say that your analysis of why we would end up in a high rate environment starts with the wrong assumptions.
The second period from 1982 - 2014 is the falling rate environment everyone is now well aware of.
When you bought that house, it probably seemed like we'd be in a low - rate environment forever.
Inflation Risk: Bond returns weren't terrible on a nominal basis in the previous rising rate environment referenced above.
The current low interest rate environment globally has pushed the majority of fixed income securities to record - low yield levels across the board.
Bond values fall in a rising interest rate environment because investors sell bonds in favor of higher interest yielding bonds.
And that drives investment in alternative assets, because it is that much tougher to earn the needed returns in a low nominal rate environment.
So what are some ways to combat a low deposit rate environment?
How can one obtain some decent returns in this close to zero prime rate environment?
Because bonds offer a fixed - rate of interest, holders can more easily compare potential gains (or losses) due to interest rate environment fluctuations.
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