Sentences with phrase «term interest rates increased»

Lower long term interest rates increased the prices of houses and stocks, adding to household net worth.
This periodic adjustment means that, unlike traditional fixed - income securities, floating - rate loans tend to hold their value when short - term interest rates increase, all else being equal.
Historically, fear of high inflation has led the Federal Reserve to step up its short - term interest rate increases.
The recent sell - off eased a bit this week even as the Federal Reserve acknowledged rising inflation, and reiterated its forecast for two to three more short - term interest rate increases in 2018.
If the bond market believes that the FOMC has set the fed funds rate too low, expectations of future inflation increase, which means long - term interest rates increase relative to short - term interest rates — the yield curve steepens.
When the difference between short - and long - term interest rates increases, the yield curve is said to «steepen»; when the difference between short - and long - term rates decreases, the yield curve is said to «flatten».

Not exact matches

Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
Private equity returns remained strong but were lower than the prior year quarter, while income from our fixed income investment portfolio increased due to a higher average level of fixed maturity investments and higher short - term interest rates.
It pointed to the continued presence of fragile fixed - income market liquidity as a key vulnerability in the overall financial system, while it repeats the risks of a sharp increase in long - term interest rates, stress from emerging markets like China and prolonged weakness in commodity prices.
The FOMC will be able to increase short - term rates by raising the interest rate that we pay on excess reserves - currently 1/4 percent.
The President of the Federal Reserve Bank of Dallas Robert Kaplan said Monday that it would be «wise to move gradually and patiently» with increases in short - term interest rates.
«Beyond the near - term, a return to a more cautious communication strategy and pace of interest rate increases is expected in light of the headwinds facing Canada,» including slow inflation growth, Toronto - Dominion Bank Senior Economist Brian DePratto said in a research note.
And mortgage rates were tied to long - term interest rates, which tend to rise when the economy improves, not necessarily when the Fed increases interest rates.
The amount of debt that is projected under the extended baseline would reduce national saving and income in the long term; increase the government's interest costs, putting more pressure on the rest of the budget; limit lawmakers» ability to respond to unforeseen events; and increase the likelihood of a fiscal crisis, an occurrence in which investors become unwilling to finance a government's borrowing unless they are compensated with very high interest rates.
When the Federal Reserve increases short - term interest rates, student loan interest rates will be raised accordingly, however the same is true if rates are lowered.
«A fund with a duration of six and a half years will lose principal value of approximately 6.5 percent for every 1 percent increase in long - term interest rates,» Scott said.
They include upwards revisions in economic forecasts, expectation of monetary tightening, rising real and nominal long - term interest rates, fiscal stimulus on a huge scale in a full employment economy, rising protectionism that should choke off import flows, and tax reform directed at reducing capital outflows and increasing capital inflows.
Federal Reserve keeps interests rates where they are, with an upcoming increase likely Short - term interest rates stayed where they were on Wednesday, but the Federal Reserve indicated that it will gradually increase them within the next few months, the Wall Street Journal first reported.
When the Federal Reserve hiked short - term interest rates on December 16, 2015, it announced that it may make further «gradual increases» when economic conditions permit.
Even with a weaker currency and a partial reversal in recent oil price declines, these issues will moderate any increase in long - term interest rates in Canada.
The Federal Reserve signalled it is getting more confident in the inflation outlook as it prepares for further increases in short - term interest rates...
In addition, they believe that interest rates will not increase as quickly as forecast in the March 2011 Budget in the short term.
The Fed left interest rates unchanged, but officials said they expect one more increase in short - term rates this year.
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].»
When the Treasury increased borrowing in short - term Treasuries earlier this year, short - term interest rates rose significantly.
Interest rates are also projected to rise, with the rate on 10 - year Treasury notes increasing from today's 2.9 percent to stabilize around 3.7 percent over the medium - term, significantly below the historical average.
Indeed, because the Trump proposal would redistribute after - tax income towards those most likely to save it, push up long - term interest rates because of debt pressures, increase uncertainty and the advantages of overseas production, it is as likely to retard growth as to accelerate it.
While the Federal Reserve decided in December to increase short - term interest rates, that hasn't yet translated into significant increases in deposit rates paid out by banks on safe, federally insured deposits — the kind of accounts consumers might want to use for an emergency fund or for parking cash they expect to use in the next month or two.
According to a 10 - Q filed by Bank of America earlier this year, a 100 - basis - point increase in both long - term and short - term lending rates would boost its interest income by $ 6 billion, which is essentially double (if not more) what its closest peers, Wells Fargo and JPMorgan Chase, would see in interest income increases.
These principles lay out a roadmap about how exit is likely to occur: First, the end of reinvestment of maturing securities; second, an increase in short - term interest rates, and, third, the gradual sale of mortgage backed securities to shrink the magnitude of excess reserves in the system and ultimately to restore the Fed's balance sheet to a predominately all - Treasury portfolio.
While it is widely believed that interest rates (and also mortgage rates) are heading higher over the long term, the rate of increase is likely to be extremely slow.
This could make market liquidity more fragile in the short term, especially in the current low interest rate environment, in which new - issue volume and the participation of interest rate - sensitive investors have increased.
• During months when interest rates were increasing, the S&P 500 barely broke even and Long - Term Treasuries «lost» almost 1 % per month.
In October 2013, Desert Newco increased the size of the term loan by $ 100 million with no change to the applicable interest rates.
For example, if inflation and interest rates increase rapidly soon, it may be prudent to add more bonds to your portfolio or replace cash ballast with intermediate term bonds.
Net investment income increased 7.6 % to $ 108 million, driven by higher short - term interest rates and higher dividend income from equity investments.
«In 1994... the increase in short - term interest rates saw a drop of 4.75 percent on average in the (net asset value) of short - term bond funds.
Then add this fact: increases in short - term interest rates have a strong tendency to increase monetary velocity, accelerating the inflationary effects of the prior monetary ease.
So what did the Fed do in December 2015 to increase short - term interest rates?
While CDs usually maintain the same rate for its entire term length, the U.S. Bank Step Up CD will automatically increase the interest rate at specified intervals.
This is evident in a number of developments, including: increased demand for higher - risk assets; the increase in «carry trades» — a form of gearing where funds are borrowed short - term at low interest rates and invested in higher - yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).
The increase of around 1 percentage point in long - term interest rates over the course of this year was associated with a fall in dwelling investment in the September quarter.
BXMT's short - term floating rate assets benefit from rising short - term interest rates, as their current yields increase with these rates.
The conventional economic case for increasing short - term interest rates was really quite weak.
If interest rates increase, you will have your money back from the shortest - term bonds in three years and can reinvest in more bonds at the higher rate in the market.
After the four increases in official interest rates between November 1999 and May 2000, short - term market interest rates fell for a time as markets became more comfortable with the outlook for inflation.
As the economy is doing well, the FED is increasing their short - term interest rate.
The result is an increase in short - term interest rates beyond what is currently reflected in market expectations and the consensus view, leaving our 2 - year forecast a bit higher at 1.75 %.
In fixed income, rate hikes by the Fed have led to higher interest rates on the short end of the yield curve, while longer - term rates have remained more contained (despite recent increases following tax reform).
When interest rates increase relatively quickly in a short period of time it typically results in a short term increase in the number of sales in the housing market as many buyers rush to buy before the interest guarantee they have with their mortgage pre-approval expires.
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