Sentences with phrase «taking duration risk»

I asked my question on asset - liability mismatch — the answer was the usual that you can't end maturity transformation, and that taking duration risk is a risk like any other.

Not exact matches

«It's more market risk than many people might be used to taking, but I don't think it's worse than duration or credit risk currently,» he said.

Potenza: As the yield curve flattens, investors get less compensation for moving further out on the curve and taking on more duration risk.

«While shortening the duration of a TIPS exposure results in a lower yield, the chart below shows it still provides an attractive breakeven ratio, or yield received for the amount of risk that an investor takes.

Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.

Two important bond measurements — credit quality and duration — can give you a good indication of the income you might receive and the risk you are taking on to pursue that income.

Return on equity should continue to grow over the next three to five years, especially as the company expands its reinsurance portfolio to take on longer - duration risks in an effort to spur results.

Fidelity ® Short Duration High Income Fund (FSAHX) This fund might be appropriate for investors looking for higher yield who are willing to take on more credit risk while limiting interest rate risk.

Organizing such a productive effort, planning its duration in time, making sure that it corresponds in a positive way to the demands which it must satisfy, and taking the necessary risks — all this too is a source of wealth in today's society.

Additionally, some research suggests taking specific probiotics may support immune health and potentially reduce the risk or duration of the common cold.

Taking the present - day levels of contaminants in Norwegian breastmilk and the long duration of breastfeeding (12 months) in Norway into account, the Norwegian Scientific Committee for Food Safety concludes that contaminants poses a low risk to Norwegian infants, and that the benefits of breastmilk to Norwegian infants clearly outweigh the risk presented by contaminants.

However, the organization also called for more research regarding the benefits of 6 vs 4 months of exclusive breastfeeding.25 Thus far, several studies in industrialized countries revealed that a shorter duration of breastfeeding increases the risk of common infectious diseases, such as respiratory and gastrointestinal tract infections.8, 19,24,26, — , 32 However, in these studies, various definitions of the exclusiveness of breastfeeding were used24, 27,28,30 or the combination of duration and exclusiveness of breastfeeding was not taken into account.8, 31

Spaceflight — particularly long - duration spaceflight — is about gambling: computing odds and taking risks.

The team also investigated the risk of infection while taking into account the duration of current or former statin use, 90 - day cumulative dose, and specific sub-groups of patients who were prescribed statins for different chronic conditions like previous myocardial infarction, peripheral arterial disease, chronic heart failure, chronic kidney disease, and diabetes.

This risk increased with longer duration of use, especially if taken for 10 or more years.

The participants were asked to assume power pose for the duration of 2 minutes, which resulted in increased testosterone levels and lower presence of cortisol in their bloodstream, and greater preparedness for taking risks.

Carl Bacon, in the book, Practical Risk Advanced Performance Measurements (2012), defines recovery time, or drawdown duration, as the time taken to recover from an individual or maximum drawdown to the original level.

They are taking on credit risk, duration risk, convexity risk, etc..

To earn money on short duration assets in this environment means taking risks, like Pimco does with its ETF with the ticker MINT.

This makes long term bonds much less attractive because we are not being rewarded for taking a risk in holding longer duration bonds.

What advice can we give to investors unable to take 3.5 years of duration risk?

In our latest white paper, Senior Portfolio Manager Duane McAllister explains how the recent boost in short - term yields not only allows investors to once again earn a reasonable nominal return on their money without needing to take significant duration risk, it also provides an opportunity to earn a positive real return, since core inflation measures remain below the Fed's 2.0 % target.

Depending on the insurer type, portfolio compositions could vary, due mostly to appropriately matching assets to liabilities and taking into consideration relative duration and liquidity risk.

Two important bond measurements — credit quality and duration — can give you a good indication of the income you might receive and the risk you are taking on to pursue that income.

I've learnt recently (thanks to Investing Intelligently and Efficient Market Canada) that bond investors should keep fund duration as short as possible because longer - term bonds offer little extra return for taking a higher interest - rate risk.

I prefer to keep duration very short because my asset allocation is very aggressive so I'm not willing to take risk on the bond side by going for a longer duration either.

We believe the bond market is very efficient in discounting risk and return potential over time and in taking interest rate risk along the duration curve.

This is called asymmetric risk since you're taking on the risk of a long duration product if rates rise while also capping potential gains (with a put to call) if rates were to fall.

Returns to taking on additional duration risk should remain elevated.

Taking on additional duration risk from holding longer maturity debt can be risky.

When I think of all of the different risks that can be taken in bonds (duration, convexity, credit / equity, illiquidity, currency, etc.) they are all being taken now, and at relatively high levels.

If one believes that interest rates will decrease, taking on more duration risk can make sense.

In our research what we found is after 2008, the start of the financial crisis, most bond funds took more credit risk and they shortened their duration.

If one believes that interest rates will increase, taking on less duration risk would be a better move.

We can extend the duration of our financial assets to better protect against the risk of purchasing power loss, however, this increases the odds of permanent loss risk (the risk of being forced to take a loss at an inopportune time) and not having the funds when you need them.

SWENSEN: If you looked at — if you looked at Yale's bond portfolio 20 years ago, probably a market portfolio, market duration, it was all government bonds because I believed that there are better ways for Yale to take equity risk than to own corporate bonds.

I took on a lot of duration risk by investing long, and it paid off.

«We take an unconstrained investment approach with dynamic sector rotation, active currency management, security selection and relative value positioning, while aiming to manage risks such as duration.»

The interest rate for a typical home equity loan needs to take several factors into account: the risks to the lender, the duration of the loan, the flexibility offered to the borrower, and the amount of the loan in relation to the amount of equity available (referred to as the Loan to Value (LTV).

Players are vulnerable for the duration of the cigarette, adding a tactical component to when and where you should take the risk.

This means buying LTD depends on how much risk you're willing to take on for the duration of your working years.

That said, there are important factors to take into consideration when implementing those programs, including their content, duration, behavioural focus and the populations targeted (at - risk vs. low - risk populations).

For example, investors or portfolio managers dissatisfied with low returns may reach for yield by taking on more credit risk, duration risk, or leverage.