Sentences with phrase «significant interest rate risk»

Because they have a high duration, long - term bonds carry significant interest rate risk.

Not exact matches

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.

Bank loans offer relative safety from interest rate risk because the coupons are reset periodically, but they do take significant credit risk.

With interest rates still hovering near the lowest levels they've ever been in 5,000 + years of recorded human history, it's very difficult to achieve a significant investment return without taking on substantial risk.

Bonds can be a core low risk component of retirement portfolios, but they do come with one significant risk factor: if interest rates go up, the bonds you already own will plummet in value.

Given rich global stock market valuations, slumping quality of internal market action, and rising global interest rates, this is not an appropriate time to accept significant market risk.

Therefore, AGND does indeed carry significant interest - rate risk, but in the opposite direction from the norm.

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

A modest change in your generic risk equation can translate into significant interest rate savings on a loan.

Interest - rate risk is generally lowest for investments with short maturities (a significant part of the fund's investments).

And in this search for higher yields, we find investors are reaching deeper and deeper into lower - grade fixed - income products, which come with significant credit and interest rate risks,» says Som Seif, president and CEO of Purpose Investments, through a statement.

According to the SEC (2013) the key risks of corporate bonds are default risk (also referred to as credit risk), interest rate risk, economic risk, liquidity risk and other significant risks including call and event risk.

also, even if the yields are higher than inflation, there is significant risk that the face value could fall if interest rates increase, reducing the effective yield

Stewart Lawrence, senior vice president and head of the Retirement Practice at Segal Rogerscasey, commented on pension plans» significant exposure to interest rates: «The significant increase in funded status caused by rising interest rates demonstrates the typical plan's exposure to the uncompensated risk of interest rate movements.

Furthermore, even if you get what seems like a good interest rate, there is still a significant risk involved in dealing with a debt consolidation company.

Other than lower rates, a significant issue with brokered CDs is that they have the same interest - rate risk as a bond, whereas the interest - rate risk of a non-brokered CD is limited to the early withdrawal penalty (EWP), which for the MACU CD is 180 days of interest, or about 1 %.

These bonds, however, typically only pay such high interest rates because they pose a significant credit risk for investors and are more likely to default or go bankrupt than higher rated companies.

But these strategies tend to have significant weightings in sectors that are highly sensitive to interest rate movements, thus introducing interest rate risk into the equity allocation.

Commodities investing entail significant risk as commodity prices can be extremely volatile due to wide range of factors Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.

Offsetting these strengths are AIG L&R's significant exposure to interest rate risk and spread compression from its dominant fixed annuity businesses, and a growing exposure to equity market and hedging risks, largely through its growing individual variable annuity business.

That means today's bond buyers could face significant interest - rate risk ahead.

If it's projected that the appraisal will absolutely show significant equity to the tune of 40 % or more, other than market conditions (and high credit score), there is little risk to locking in the interest rate upfront.

The interest rate tied to these bonds were 8.5 % suggesting TA possess significant credit risk.

Significant changes in interest rates expose reinsurance companies to the risk of reduced investment income or actual losses based on the difference between the interest rates earned on investments and the credited interest rates paid on outstanding reinsurance contracts.

There are higher - risk bonds that carry high coupons (interest rates) You may be interested in assuming that risk to potentially make significant interest on your investment.

The market is NOT focused on the risk of inflation or a significant increase in interest rates.

Thus, an investment in a hybrid may entail significant market risks that are not associated with a similar investment in a traditional, U.S. dollar - denominated bond that has a fixed principal amount and pays a fixed rate or floating rate of interest.

Professional property investors, given their long - term perspective and their focus on minimising risk, understand that the interest rate cycle is an inescapable reality and a significant risk that must be managed proactively

Fluctuating rates pose a significant risk to your monthly expenses after the initial period expires and you will incur higher payments not necessarily towards the principal but interest itself.

Homeowners can enjoy significant savings over a conventional 30 - year fixed mortgage if they feel relatively confident in their estimate of how long they will be living in their home, and they are willing to take some risk if they are wrong on their estimate and interest rates rise.