Sentences with phrase «risk of a rising interest rate»

Most caps on variable interest rate student loans are roughly 8 - 9 %, which can help decrease the risk of a rising interest rate.

Most loans have been acquired for debt consolidation purposes and have a risk of rising interest rates, which could adversely affect investors and borrowers alike

Traditional bond portfolios have significant exposure to the risk of rising interest rates.

Mutual fund and ETF makers have created floating - rate bond funds that aim to cut the risk of rising interest rates.

For some borrowers, the initial savings may be worth the risk of rising interest rates down the road.

The risk of rising interest rates has become an obsession in the financial media.

Investment adviser Kelly Gares of BlueShore Financial in West Vancouver, B.C., says one way to mitigate the risk of rising interest rates on bonds is to hold bonds that are close to their maturity date or ones with a short duration.

Understand why the risk of rising interest rates is a concern heading into 2016.

This article will present my personal perspectives on interest rates and their potential impact on stock Read more about The Threat and Risk of Rising Interest Rates: Separating Fact from Fiction -LSB-...]

(The Wall Street Journal: Apr 13, 2015) The «Alternative Investing» advice column in The Wall Street Journal's Wealth Management special section features ProShares High Yield — Interest Rate Hedged (HYHG) among high yield ETFs that «try to protect against the risk of rising interest rates.»

This kind of loan actually transfers the risk of rising interest rates to you, the homeowner.

If you're concerned about the risk of rising interest rates, many ARM loans have caps on how much the interest rate can increase or decrease.

Not exact matches

If interest rates rise and push that risk - free rate of return higher, then those dividend stocks and high - yield bonds are vulnerable.

YELLOWKNIFE, Northwest Territories, May 1 - Bank of Canada Governor Stephen Poloz said on Tuesday that the view of the Canadian economy is quite good despite record levels of household debt, and he was confident the central bank can manage the risk of that debt even as interest rates rise.

«Gold is stuck between $ 1,238 - $ 1,260 with the risk to skewed to downside based on rising expected interest rates and failure to break higher which has left it vulnerable to profit - taking in the short term,» said Ole Hansen, the head of commodity strategy at Saxo Bank.

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.

Government bonds could help reduce default risk, but because of the length of maturity required to earn any meaningful yield, they do little to reduce duration risk - i.e. the overall sensitivity of a portfolio to interest rate rises.

«In a bond mutual fund, you're invested in a pool of bonds with no set maturity date, which means more risk if interest rates rise.»

We believe that the downside risk is that the economy enters a period of «overheating» characterized by rising inflation and higher interest rates.

A fixed rate loan offers stability and certainty, while variable and hybrid rate loans offer potential cost savings for those who are willing to take the risk of the interest rates rising.

In terms of the interest rate risks, It's more of an opportunity cost than a real «hit from rising interest rates», assuming you hold to maturity.

The tail - end of this period saw rapidly rising inflation and interest rates, but it's worth noting that the risk premium hasn't always been quite so narrow (stocks were up 10.5 % per year in that time).

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.

Although risks remain, the fear of rising interest rates dampening homebuying activity has sent Toll Brothers stock to a bargain price.

I can see the risk if you intend to sell and interest rates rise, but buy and hold seems to be pretty low risk — unless the dollar becomes defunct, of course.

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.

In return for this lower rate, the borrower must accept the risk that the interest rate on the loan most likely will rise in the future, thereby increasing the number of monthly mortgage payments.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

The partners do assume risk because, as owners, they share in losses as well as profits — and this year has been a tough one for Goldman and the rest of Wall Street, as rising interest rates brought spectacular trading losses.

Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk.

Interest rate risk If interest rates rise, the price of existing bonds usually dInterest rate risk If interest rates rise, the price of existing bonds usually dinterest rates rise, the price of existing bonds usually declines.

We could take the $ 16 billion we have in cash earning 1.5 % and invest it in 20 - year bonds earning 5 % and increase our current earnings a lot, but we're betting that we can find a good place to invest this cash and don't want to take the risk of principal loss of long - term bonds [if interest rates rise, the value of 20 - year bonds will decline].»

REITs, especially mortgage REITs, are also subject to interest rate risk (i.e., as interest rates rise, the value of the REIT may decline).

The risks associated with bond investments include interest rate risk, which means the prices of the fund's investments are likely to fall if interest rates rise.

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.

Then there's Stephen Poloz, the Bank of Canada governor who has a precarious decision to make: keep pace with rising U.S. interest rates and risk growth — not to mention driving up interest costs for heavily indebted households — or stand pat and risk a collapsing loonie.

Bonds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.

Long - term treasuries will likely still work as ballast when it matters most (global risk - off events), but we see short - term U.S. debt now offering compelling income, along with a healthy buffer against the risk of further interest rate rises.

While shortening duration can help mitigate interest rate risk, another approach to consider is one that balances exposure to the very front end of the curve with exposure to intermediate maturities for additional yield potential and lower volatility, given that rates are likely to rise slowly and stay historically low for the foreseeable future.

Rising interest rate is the biggest risk for CubeSmart, which reduces the attractiveness of investing in REITs.

Certain types of bonds offer a degree of protection from rising inflation and interest rates, though they come with their own risks.

Measured across all loan products, and taking into account changes in customer risk margins, however, it seems that interest rates paid on average by small businesses have increased by a little less than the rise in interest rates directly due to the tightening of monetary policy.

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?

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

There is also a plausible risk that China will retaliate by selling a portion of its vast US treasury debt holdings, putting further upside pressure on already rising US interest rates.

The Board's assessment throughout this period has been that, with strong growth, a gradual increase in underlying inflation, and firming demand for credit, interest rates needed to rise to lessen the risks of higher inflation in the future.

Stronger - than - expected earnings growth of 18 % for the S&P 500 have helped stocks move higher, but potential causes of volatility, including additional tariff proposals and rising interest rates, continue to be headline risks.

CD values are subject to interest rate risk such that when interest rates rise, the prices of CDs can decrease.

As we covered this spring (WILTW May 25, 2017), the International Monetary Fund's annual Global Financial Stability report included a stark warning about the health of the U.S. economy: 22 % of U.S. corporations are at risk of default if interest rates rise.

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline.