Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because
rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.
A significant undersupply in new homes should keep the construction market rocking at least until mortgage
rates rise to a level that would temper demand.
Not exact matches
Despite
rising debt
levels and increasing home prices, Canadians continue
to allocate less income toward paying off debt, according
to the Canadian Household Financial Health and Consumer Credit Q1 2015 report [paywall] recently published by credit
rating agency DBRS.
No. 1: Housing doomsayers argue that when interest
rates rise from their currently low
levels, it'll take away the credit punch bowl and cause house prices
to tumble.
If growing unemployment was not enough, a decline in labor market participation was also on the
rise, the ILO said, a warning borne out by the latest U.S. jobs data from December which showed that the labor force participation
rate tumbled
to 62.8 percent, its worst
level since January 1978.
But a high -
level meeting scheduled for Wednesday at this year's UN gathering is a testament
to fast -
rising concern over the
rate at which bacteria are learning
to evade science's last remaining tools against them.
Beyond sea
level rise, San Francisco is slowly sinking at a
rate of up
to 10 millimeters per year in a process called subsidence.
With valuations sitting near record
levels, they're especially vulnerable and likely
to lose appeal relative
to bonds as interest
rates rise.
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.
With the United States also reducing its quantitative easing - related bond purchases, supply would then slowly
rise and potentially push
rates to more extreme
levels.
RATES STILL LOW: Even as concerns about rising bond yields and interest rates spook some investors, bulls are quick to mention that rates are rising off extremely low le
RATES STILL LOW: Even as concerns about
rising bond yields and interest
rates spook some investors, bulls are quick to mention that rates are rising off extremely low le
rates spook some investors, bulls are quick
to mention that
rates are rising off extremely low le
rates are
rising off extremely low
levels.
NEW YORK, Feb 5 - The dollar
rose against a basket of currencies on Monday as the U.S. bond market selloff
levelled off after the 10 - year yield hit a four - year peak on worries that the Federal Reserve might raise interest
rates faster
to counter signs of wage pressure.
«While
rising long - term
rates will ultimately become a negative for profits and multiples, we do not see current
levels as a reason
to de-risk and sell equities,» J. P. Morgan's Dubravko Lakos - Bujas says.
«While
rising long - term
rates will ultimately become a negative for profits and multiples, we do not see current
levels as a reason
to de-risk and sell equities,» Dubravko Lakos - Bujas, head of U.S. equity strategy at J.P. Morgan, said in a note Wednesday.
A separate report from the Mortgage Bankers Association showed mortgage applications last week
rose to their highest
level in nine weeks as interest
rates on 30 - year fixed -
rate mortgages hovered at their lowest
level in more than a year.
While these studies suggest that the
rising level of student debt contributes
to the decline in
rates of entrepreneurship among young people today, mounting student debt is unlikely
to be the sole cause of low
levels of entrepreneurship among millennials.
More from Balancing Priorities: What
to do with your bond portfolio as Fed
rates rise Credit scores are set
to rise Don't make these money mistakes when you're just starting out «There is no sense in bearing the risk of an adjustable
rate when you can lock in a fixed
rate at essentially the same
level,» he said.
The only discussion is about the timing of the
rate hikes, not the
levels to which they are
rising.
Crudely put, the theory states that when inflation
rises above a prescribed
level (typically around 2 %), central banks must respond by raising interest
rates, which quells consumer demand and causes inflation
to fall back
to «acceptable»
levels.
The central bank has concerns about the ability of households
to keep paying down their high
levels of debt when interest
rates continue their
rise, as is widely expected over the coming months.
That gold is still holding at its current
level — despite
rising rates, despite a stock market that continues
to rally — is «encouraging.»
The key long - term U.S. mortgage
rate declined slightly this week, after a steady
rise for most of April that pushed the
rate to its highest
level in...
In this study, the effects of sea
level rise (assumed
to continue at present, at the time of the study,
rates, which the authors noted was likely conservative), wave fetch, wind speed and direction were examined and the resultant erosion
rate was estimated for the Western and Eastern shore of Uppands, Port Isobel and Tangier Island by selecting 10 points along the western and eastern shoreline of all the islands.
The first and more important is that interest
rates are expected
to rise from their current low
levels, making any given amount of debt more costly
to finance.
And when the Fed eventually does allow
rates to rise to more normal
levels — even if that really isn't until 2014 — bond prices will fall significantly.
Rates and multiples are more likely to rise in tandem when interest rates are rising from unusually low levels, as is the case t
Rates and multiples are more likely
to rise in tandem when interest
rates are rising from unusually low levels, as is the case t
rates are
rising from unusually low
levels, as is the case today.
In other words, interest
rates are not
rising because of inflation fears, but because
rates are starting
to normalize from the unsustainably low
levels reached earlier this year.
According
to Green, however, the debt problems at the local
level could probably be mitigated if it is transferred
to the central government balance sheet given the country's strong growth
rate and
rising tax revenues.
Long bonds will end up being a very volatile investment at some point once
rates or inflation
rise from current
levels, but intermediate - term bonds should continue
to dampen stock market volatility.
Precious and Industrial Metals Inflation concerns, geopolitical tensions and interest -
rate levels, especially real yields, contributed
to a 1.7 %
rise in the spot price of gold (
to US$ 1,325 per troy ounce), as did swings in the US dollar.1 Gold prices traded within the US$ 1,305 — 1,360 range throughout the period, reached 18 - month highs in March and capped their third straight quarterly gain, a feat not seen since 2011.1 Haven demand was a key support as exchange - traded gold holdings of 2,269 metric tons (mt) neared a five - year high.1 The Fed is widely expected
to boost borrowing costs, and investors have been carefully watching the central bank's statements
to see whether it targets more
rate increases in 2018 than previously projected.
Unfortunately, corporate debt relative
to U.S. GDP has now returned
to prerecession
levels, a risk made even riskier by
rising interest
rates.
For much of the past two years, the discounts offered by automakers have remained at
levels that industry analysts say are unsustainable and unhealthy in the long term... Sales are expected
to drop further in 2018 as interest
rates rise and more late - model used cars return
to dealer lots
to compete with new ones.
«Mortgage
rates dropped
to their lowest
level since November 2016, as geopolitical tensions continued
to rise,» said MBA chief economist Mike Fratantoni.
The latest forecast of the University of Ottawa's Institute of Fiscal Studies and Democracy shows that
rising interest
rates threaten Morneau's promise
to contain Canada's debt at current
levels relative
to gross domestic product.
We see volatility and dispersion
rising to normalized
levels as the Fed lifts
rates and markets pay more attention
to lurking tail risks.
Bond values are tied closely
to the
level of interest
rates: As interest
rates rise, the values of bonds fall; as interest
rates fall, the values of bonds
rise.
If it is a new era of faster growth and new investment opportunities, then the equilibrium real interest
rate (the
rate at which monetary policy neither boosts nor restrains the economy) would
rise, so the central bank would be right
to move interest
rates towards that
level.
If the IT revolution increases profitable investment opportunities, then the equilibrium real interest
rate must
rise in order
to encourage households
to save more
to finance the higher
level of investment.
Canadian interest
rates will
rise relative
to world interest
rates, because the Looney is expected
to be depreciating back
to its original
level.
Current interest
rates are slowly
rising back
to historical norms after years of near - zero
levels.
As the exchange
rate appreciated through
to late November, speculative positioning in Australian dollar futures on the Chicago Futures Exchange
rose to record
levels.
So when U.S. inflation
rises to this
level, the Fed will likely raise the federal funds
rate.
This borrowing eventually reached
levels that proved
to be unsustainable and, after interest
rates began
rising in 2004, forced millions into foreclosure.
Hold debt
levels static, and that
rate of economic decline would force Italy's debt
to GDP ratio
to rise to 122 % from 118 % - clearly the wrong direction if the hope is
to ease long - term solvency concerns.
In the years ahead, oil production will decline
to remove excess capacity, prices will again
rise above costs, energy company margins will recover, and market -
level earnings will return
to a normal
rate of growth.
President Donald Trump's job approval
rating rose to 42 %, its highest
level in almost a year, according
to polling data released Monday by Gallup.
The euro zone's unemployment
rate rose to a fresh high while the annual
rate of inflation hit its lowest
level since 2010, a combination that increases the chance of an ECB
rate cut.
Growth at this pace has exceeded the
rate of growth of the economy's productive potential, generating declining unemployment and
rising levels of capacity utilisation, and is likely
to have contributed
to the upstream price pressures described above.
If you have already retired, it is not too late
to benefit from investing for dividends: decide whether you want
to address your costs now by investing in high income stocks, or
to create a
rising level of dividends by investing in stocks that have a high dividend growth
rate.
The European Union's official statistics agency Tuesday said the
rate of unemployment across the 17 countries that share the euro
rose to 12.1 % from 12.0 %, the highest
level since records began in 1995.