Sentences with phrase «rates move in opposite directions»

Among finance types like me, the fact that bond prices and interest rates move in opposite directions is so fundamental and obvious that it is used as a punch line.
Bond prices and interest rates move in opposite directions.
South Africa's rating moved in the opposite direction — losing its investment - grade status — after the removal of the country's respected finance minister by President Jacob Zuma.

Not exact matches

If this all occurs while rates are rising, which of course means bond prices are moving in the opposite direction, we could surely see a very sloppy bond market over the next year or two.
he general trend was for average household debt to move in the opposite direction of the interest rate,» Statscan noted.
«The general trend was for average household debt to move in the opposite direction of the interest rate,» Statscan noted.
Bond prices, and thus a bond fund's share price, generally move in the opposite direction of interest rates.
For fixed income ETFs, bond prices, and thus an ETF's unit price, generally move in the opposite direction of interest rates.
For fixed income ETFs, bond prices, and thus an ETF's unit price, generally moves in the opposite direction of interest rates.
Indeed, Chairman Camp, former Chairman Baucus, and the Wyden - Gregg tax reform plan all moved in the opposite direction, reducing accelerated depreciation to pay for lower tax rates.
In the U.S., the Federal Reserve (the Fed) is moving toward a more «normalized» stance on interest rates, while other countries and regions are heading in the opposite directioIn the U.S., the Federal Reserve (the Fed) is moving toward a more «normalized» stance on interest rates, while other countries and regions are heading in the opposite directioin the opposite direction.
In rising rate environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yieldIn rising rate environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yieldin the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yields.
Hints of a tighter monetary policy from the ECB and anunlikely interest rate increase from the SNB confirm that both central banksare moving in opposite directions.
The only confusing part to remember about mortgage rates is that the move in the opposite direction of mortgage bond prices.
Long - term yields and the sterling have been climbing recently, moving in the opposite direction the BoE had hoped and raising questions about whether investors believe the bank will change its mind and hike rates sooner than it promised.
Government bonds have typically been more sensitive to changes in U.S. interest rates, as they have a much higher proportion of foreign buyers and sellers from countries where local rates might be more stable or moving in the opposite direction.
Meanwhile, Canada's personal and corporate tax rates have been moving in the opposite direction.
Treasury prices move in the opposite direction of interest rates.
There is also the prospect of price loss as the Federal Reserve (Fed) has started raising its benchmark lending rate amid a stronger U.S. economy (a bond's yield moves in the opposite direction of its price).
It should be noted that although COFI generally follows trends in market rates, it can move in an opposite direction over the near term (one of these periods is marked on the historical graph above).
The only confusing part to remember about mortgage rates is that the move in the opposite direction of mortgage bond prices.
An easy way to grasp why bond prices move in the opposite direction as interest rates is to consider zero - coupon bonds, which don't pay coupons but derive their value from the difference between the purchase price and the par value paid at maturity.
Share prices and yield will be affected by interest rate movements, with bond prices generally moving in the opposite direction from interest rates.
(Bond prices move in the opposite direction of rates.)
On the other side of the border, interest rates are poised to rise and if our rates are moving in opposite directions, the U.S. dollar could continue to be strong relative to our loonie.
But rates don't all move in lockstep: sometimes those at the long end rise or fall while the shorter end remains unchanged, or even moves in the opposite direction.
Inflation and interest rates behave similarly to bond yields, moving in the opposite direction from bond prices.
There is also the prospect of price loss as the Federal Reserve (Fed) has started raising its benchmark lending rate amid a stronger U.S. economy (a bond's yield moves in the opposite direction of its price).
Although the relationship between interest rates and the stock market is fairly indirect, the two tend to move in opposite directions: as a general rule of thumb, when the Fed cuts interest rates, it causes the stock market to go up; when the Fed raises interest rates, it causes the stock market as a whole to go down.
In rising rate environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yieldIn rising rate environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yieldin the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yields.
Remember, interest rates and bond prices move in opposite directions, so rising rates mean lower prices for existing bonds.
Interest rates and bond prices move in opposite directions so that as interest rates rise, bond prices usually fall, and vice versa.
And then there's the risk that interest rates will start climbing and cause capital losses, since bond prices move in the opposite direction.
Price and yield always move in opposite directions for a fixed rate security.
PROSHARES DECLINE OF THE RETAIL STORE ETF $ 34 (New York symbol EMTY; TSINetwork ETF Rating: Aggressive; Market cap: $ 24 million) is designed to move in the opposite direction of its underlying index — specifically, the Solactive - ProShares Bricks and Mortar Retail Store Index.
Because interest rates and bond prices move in opposite directions; if interest rates rise, the value of a fixed income security falls.
Interest Rate Risk: Fixed income securities are subject to interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interest raRate Risk: Fixed income securities are subject to interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interest rarate risk because the prices of fixed income securities tend to move in the opposite direction of interest rates.
However from what I noticed, things seem to move in the opposite direction with a few other online banks increased the rates of their savings accounts in addition to Ally Bank.
When interest rates were falling, I expected to see P / E ratios moving in the opposite direction — and vice versa.
They were issued at a time when interest rates were higher, and as rates fell, the price of these bonds rose above their par value (interest rates and bond prices move in opposite directions).
Bond prices generally move in the opposite direction of interest rates.
A CMO tranche that pays an adjustable rate of interest that moves in the opposite direction from movements in a representative interest rate index such as the London Interbank Offered Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (COrate of interest that moves in the opposite direction from movements in a representative interest rate index such as the London Interbank Offered Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (COrate index such as the London Interbank Offered Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (CORate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (COFI).
Because interest rates and bond prices move in opposite directions, this policy has been a boon for bonds.
Taken together with increasing (private) investor aversion to (European) equity markets, prolonged low interest rates, and the eventual threat of higher inflation & lower entitlements, this seems to virtually guarantee a slow but sure convergence in ownership towards other Western countries (who will perhaps be slowly moving in the opposite direction).
Remember bond prices move in opposite direction to interest rates.
Space is organic and time is non-linear — a group of different objects moving through the picture plane at various rates of speed, in opposite directions, some gliding slowly and others whirring as if in a blender.
-- a consistent gas with thermal relaxation rates that are slow compared to hydrodynamic viscous relaxation rates (that work to slow dynamical shear whenever it occurs within the gas, gas parcels moving in opposite relative directions) and convective relaxation rates.
Multifamily starts moved in the opposite direction because of a unusually high level in June but also continued on an upward trend when comparing a moving - average that now tops over a 400,000 annualized rate.
Asking rent growth rates varied with majority IL and majority AL moving in opposite directions.
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