Sentences with phrase «shift in interest rates»

A sudden shift in interest rates, an unforeseen disaster such as the September 11 terrorist attacks, another deal by a competitor — all can suddenly make something that seemed a good deal untenable.

I view it a little like bonds which I think are a time bomb waiting to explode with any upward shift in interest rates.

Though I'm not inclined to put much weight on projections or forecasts, the present shape of the yield curve is one that has historically been followed by a parallel upward shift in interest rates at all maturities.

Since changes in interest rates impact bond funds differently than bonds and CDs, estimates of price sensitivity may be less accurate the larger the shift in interest rates.

Changes in monetary policy mean a change in the operating target for the cash rate, and hence a shift in the interest rate structure prevailing in the financial system.

This may give rise to critical transitions in the system that will be reflected in shifts in interest rates, as key indicators of supply and demand conditions in financial markets.»

The longer a portfolio's duration, the more sensitive the portfolio is to shifts in the interest rates.

Using the dynamic version is more accurate for period - by - period estimates and for brief shifts in interest rates, but it won't immediately pick up the full effect of sustained interest rate changes unless you run the estimates forward to allow the lagged effects to kick in.

Honor the momentum, but keep one eye on shifts in interest rates and profit margins.

The following table presents the estimated pre-tax change in fair value of the Company's financial instruments as of December 31, 2007 from instantaneous shifts in interest rates.

The longer a portfolio's duration, the more sensitive the portfolio is to shifts in the interest rates.

Consider the time needed to mature your bonds, as longer - dated bonds are typically more sensitive to shifts in interest rates.

Like shifts in interest rates, alterations in rules can take a long time to work their way into the market — especially a market as disparate as housing.

Not exact matches

Banking analyst Dick Bove says it's folly to argue a shift in money availability and real interest rates won't have a fundamental impact.

First voiced in the 1970s by Arthur Laffer, an adviser to the Nixon administration who came from the conservative Chicago school of economics, it was embraced by the likes of Ronald Reagan and Margaret Thatcher and, consensus has it, went a long way to alleviating the stagflation of that era (though falling energy prices and interest rates, demographic shifts and yes, deficit spending contributed too).

«Normally when you get to this part of the cycle, where the disparity in valuations between growth stocks and value stocks is as wide as it is today, accompanied by rising interesting rates, normally there's a shift where value comes in favor,» he says.

«Normally when you get to this part of the cycle, where the disparity in valuations between growth stocks and value stocks is as wide as it is today, accompanied by rising interest rates, normally there's a shift where value comes in favor.»

The bets for an earlier shift receded after the latest inflation numbers, but there now is a consensus the Bank of Canada will raise its benchmark interest rate by a quarter point in the autumn, probably October.

Low interest rates have given a huge incentive to shift out of low - risk assets into stocks and corporate bonds in search of higher returns.

Interest rates in the US were reduced to historically low levels during 2001, while discretionary tax cuts and government spending increases (along with the automatic stabilisers) have shifted the fiscal position in a markedly expansionary direction.

Instead, a sharp shift in fiscal policy led to high real interest rates that stimulated a strong demand for the dollar, which caused the dollar to appreciate sharply.

The RBA uses the operating technique which has come universal in countries with deregulated financial markets: the Bank can influence liquidity in the payments clearing system, and is allows us to shift interest rates at the very short end of the yield curve.

In general, changes in valuation are driven by shifts in k: changes in interest rates (Rf) drive longer - term trends in valuation multiples, while shocks to valuation multiples are almost always driven by shifts in the risk premium zIn general, changes in valuation are driven by shifts in k: changes in interest rates (Rf) drive longer - term trends in valuation multiples, while shocks to valuation multiples are almost always driven by shifts in the risk premium zin valuation are driven by shifts in k: changes in interest rates (Rf) drive longer - term trends in valuation multiples, while shocks to valuation multiples are almost always driven by shifts in the risk premium zin k: changes in interest rates (Rf) drive longer - term trends in valuation multiples, while shocks to valuation multiples are almost always driven by shifts in the risk premium zin interest rates (Rf) drive longer - term trends in valuation multiples, while shocks to valuation multiples are almost always driven by shifts in the risk premium zin valuation multiples, while shocks to valuation multiples are almost always driven by shifts in the risk premium zin the risk premium z.]

Paul Krugman recently noted a parallel shift in the Bank for International Settlementsâ $ ™ ongoing calls to raise interest rates: â $ œHigher interest rates are always the solution; itâ $ ™ s only the problem theyâ $ ™ re supposed to solve that changes.â $

In more technical economic language secular stagnation is the hypothesis that the IS curve has shifted back and down so that the real interest rate consistent with full employment has declined.

Starting in late April, the Fed seemed to shift its stance yet again, becoming more «hawkish» regarding its outlook for interest rates.

We will seek to communicate so as to avoid generating sharp shifts in term premia and in long - term interest rates.

The low interest rate environment may also have encouraged a shift in investments towards hedge funds as, in the past, hedge funds have achieved higher average returns than traditionally managed investments, albeit in exchange for greater risk.

The Aussie Dollar moved from $ 0.75781 to $ 0.75706 upon release of the figures, as focus now shifts to the RBA's interest rate decision and release of the rate statement tomorrow, disappointing inflation figures for the 1st quarter likely to leave the RBA in a holding pattern for the foreseeable future.

Most economists expect home loan interest rates to rise gradually in 2016, partly as a result of the Fed's policy shift.

Asian indices are enjoying significant gains on Thursday, tracking the positive lead overnight from Wall Street while the focus now shifts towards the much - anticipated FOMC statement, which may or may not see US interest rates increased for the first time in nearly a decade.

FXStreet (Mumbai)-- Asian indices are enjoying significant gains on Thursday, tracking the positive lead overnight from Wall Street while the focus now shifts towards the much - anticipated FOMC statement, which may or may not see US interest rates increased for the first time in nearly a decade.

Possible reasons for stock market pullbacks include rising interest rates, elevated political uncertainty, a shift in sentiment or unexpected changes in fiscal, monetary or trade policies.

In the wake of a financial crisis associated with over-leverage, monetary policy can, by lowering interest rates, lessen the burden on the indebted sectors by shifting the burden in part to the net holders of interest - earning assetIn the wake of a financial crisis associated with over-leverage, monetary policy can, by lowering interest rates, lessen the burden on the indebted sectors by shifting the burden in part to the net holders of interest - earning assetin part to the net holders of interest - earning assets.

Relative to those huge rewards, paltry shifts in the cost of borrowing or in the interest rate paid for doing nothing will barely move the needle.

In the face of these near - zero interest rates, one had to wait for market internals to deteriorate explicitly (indicating a shift toward risk - aversion among investors) before adopting a hard - negative market outlook.

We will expect the figures to have an influence on the EUR, with any hint of a pickup in inflation and stable economic growth through the 1st quarter the best outcome for the EUR and those looking for Draghi to begin shifting on policy towards interest rates.

Among US government bond ETFs, short - term bond ETFs accumulated more than $ 6 billion in flows, while long - term bond ETFs saw $ 0.3 billion in outflows amid changes in volatility and shifting interest rate expectations (see US government bond ETF flow).

By the same token, if the central bank reduces the interest rate to zero, investors will shift portfolios to stocks, everyone will feel richer, and consumers will spend more «which is more or less what happened during the past two quarters of putative recovery in the United States.

And with the majority of states now implementing more rigorous academic standards aiming to help more students graduate better prepared for life after high school, and with the nation watching to see if this shift indeed leads to improved outcomes, interest in the graduation rate is unlikely to subside any time soon.

Most economists expect home loan interest rates to rise gradually in 2016, partly as a result of the Fed's policy shift.

The decline shows how the mortgage market is experiencing its largest shift in more than a decade as an era of generally falling interest rates that began in 2000 appears to have run its course... and the marginal potential refinancer has hit their limit.

Just compare loan rates from reputable lenders, who will automatically raise or lower their specific rates in order to stay competitive as the financial markets shift through the natural ups and downs of interest rate fluctuations.

However, I only know is that when there is a sudden shift in the market interest rates change dramatically almost overnight and if you are paying attention, you can lock in a rate that is much lower than if you wait a few more days.

We don't see any major shifts in savings rates until the Fed finally boosts interest rates.

By adjusting the nominal interest rate to compensate for the effects of inflation, you are identifying the shift in purchasing power of a given level of capital constant over time.

While the nominal interest rate is the interest rate officially assigned to the product or investment, the real interest rate is a reflection of the change in purchasing power derived from an investment based on shifts in the rate of inflation.

Kevin Murphy at the London Value Investor Conference, talking about how there has been a shift away from deep value to growth style investing, how this could affect returns and what impact a rise in interest rates could have on this style.

A reduced interest rate will shift more of any payment you make in favor of the principal owed, rather than servicing the interest.

That represents a critical regime shift and underlies our strategic recommendations for Treasury Inflation Protected Securities (TIPS) as well as our downshifting in U.S. Treasuries, reflective of a higher interest rate environment in 2017.