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.
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.
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 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.
Our analysis shows that a high interest
rate environment does not necessarily have a negative impact on REIT performance.
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.
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.
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.
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 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.
Because bonds offer a fixed - rate of interest, holders can more easily compare potential gains (or losses) due to interest
rate environment fluctuations.
Phrases with «rate environment»