Sentences with phrase «term rates rise»

The premiums you pay for term insurance are lower at the earlier ages as compared with the premiums you pay for permanent insurance, but term rates rise as you grow older.

As short - term rates rise, the coupon on floating - rate funds also rises.

That would make long term rates rise.

Unlike in Operation Twist, under which the Fed sold short - term Treasury securities and bought long - term, the current guidance is that the Fed does not want to see short - term rates rise.

There is risk if long - term rates rise too quickly.

But depending on how much long - term rates rise or fall above HUD's «floor,» borrowers could be eligible to receive more loan proceeds from a reverse mortgage at lower expected rates compared to when rates rise.

Let short - term rates rise to reflect the true scarcity of short - term ways to profit.

Economically speaking, if short - term rates rise above long - term rates — a process known as «inversion» — it's often a warning sign of a coming recession.

Starting with banks, as you might expect, banks benefit when long - term rates rise and the yield curve steepens.

It is important to note however, that at times, abnormal economic factors can cause the yield curve to «invert» — i.e., short - term rates rise above longer - term rates, or to be «flat» across the maturity spectrum.

Today, most coupon floors are above short - term benchmarks, meaning most bank loans won't benefit until short - term rates rise above that floor.

The yield curve can steepen if short - term rates decline or if long - term rates rise.

Sandler O'Neill points out that as the longer term rates rise, the Fed will be forced to raise the overnight rate.

Persistent demand for long - term Treasuries pushed 30 - year yields lower even as short - term rates rose.

Treasury yields across maturities rose leading up to the meeting, with short - term rates rising the most as markets took into account the Fed's expected pace of three to four rate hikes in 2017.

Not exact matches

And, as this chart shows, the renminbi and the bitcoin rate to the dollar have become increasingly closely correlated (though bitcoin's rise, in percentage terms, has of course been far more dramatic).

Or, do the economic positives we hear each day about low interest rates, low unemployment, low inflation, a healthy banking sector, rising real - estate prices, technology improvements, protection of resources, renewable energy and the rise of India — among others — suggest that any downturn or crisis will merely be a short - term market correction, with the kind of economic rebound we saw following the 2008 crisis?

But longer term, rising rates will be bad for stocks; therefore, investors may want to evaluate their portfolios and move out of some equities and invest more in bonds, she said.

«While the Fed may hike the funds rate to 3.4 %, that increase is unlikely to be matched by a rise in long - term Treasury yields.

«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.

«As real long - term interest rates rise, stock prices fall,» but that's probably not the cause of the wild market swings, Greenspan says.

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.

Alternatively, it's best to shorten the average term to maturity of your bond portfolio as interest rates enter into a rising cycle, because the shorter the term, the less their price will be affected.

So, putting the two together, we want to own short - term high - coupon bonds when rates are rising, and low - coupon long - term bonds when rates are trending down.

A rising oil price is positive for fiscal balances, but it slows long - term reform, says Jan Friedrich, head of Middle East & Africa sovereign ratings at Fitch Rratings at Fitch RatingsRatings.

His evidence: rising short rates, low long - term rates (suggestive of little inflation), the rise in value stocks, and outperformance in emerging markets relative to U.S. equities.

Long - term interest rates could rise abruptly, as bond prices fall.

«While rising long - term rates will ultimately become a negative for profits and multiples, we do not see current levels as a reason to de-risk and sell equities,» J. P. Morgan's Dubravko Lakos - Bujas says.

The report said one potential danger to greater global financial stability is the possibility that long - term interest rates could rise more sharply than anticipated.

«This process will be unprecedented and complex,» said Vinals, who also noted that long - term market interest rates have already begun to rise in anticipation of the tapering.

«While rising long - term rates will ultimately become a negative for profits and multiples, we do not see current levels as a reason to de-risk and sell equities,» Dubravko Lakos - Bujas, head of U.S. equity strategy at J.P. Morgan, said in a note Wednesday.

Long - term bond rates have risen about one percentage point since then, and that has caused bond values to fall.

The simplified explanation for this aberrant investing disaster was a dramatic rise in interest rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in 1981.

Funds that own high - quality bonds with shorter durations, such as Fidelity Short - Term Bond, can help reduce your portfolio's sensitivity to rising rates.

Already, the bond yield curve, which measures the difference between short - term interest rates and long one, has been rising.

Of course, long - term interest rates will rise in response to additional rounds the tapering — that is, after all, the whole point of tapering — but the adjustment will happen gradually.

Back in December, the Fed said it would hold the target short - term rate steady at least until unemployment had dropped to 6.5 %, assuming inflation didn't rise past 2.5 %.

The markets, though, initially seemed to misunderstand or disbelieve the central bank, taking the taper - talk as a sign that short - terms rates too would soon rise.

When Bernanke's taper talk caused long - term interest rates to rise much faster than the Fed intended, one of the ways in which the central banks sought to allay market fears was to stress that it would keep short - term rates steady until the jobless rate had reached at least 6.5 %.

However, rates appear to be on the rise in the long term.

On Money magazine's MONEY 50 recommended list, Vanguard Short - Term Investment Grade (VFSTX) has a duration of 2.6 years, implying if rates were to rise one full point, the price of the fund's holdings would decline 2.6 %.

The market has now caught up with the Fed's view, with rising short - term interest rates reflecting this greater confidence.

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.

Mortgage rates, which track the movements of long - term Treasury yields, rose by about a percentage point during the summer.

Economic activity has gained momentum and longer - term interest rates have risen, helping to boost the earnings of banks and insurance companies.

The rise in short - term U.S. rates reflects multiple market crosscurrents.

So if we can expect 3 more quarter - point hikes this year it would seem to make sense to stick to short - term CDs yielding around 2 % now and then look for a longer - term one at around 3.5 % at EOY, especially if one — I am in this camp — thinks that by EOY the odds of recession will have risen enough that further rate hikes in 2019 will be looking doubtful.

Equities really have had the best of all worlds these past few years, with earnings growth in the double digits and financial conditions remaining very accommodative, despite the recent rise in both short - and long - term interest rates.1 The combination of rising earnings growth and benign financial conditions is a powerful set of tailwinds which usually drives stock valuations higher.

The key long - term U.S. mortgage rate declined slightly this week, after a steady rise for most of April that pushed the rate to its highest level in...

Many funds companies, including Vanguard and Fidelity, offer short - term bond funds that will likely outperform during a rising interest - rate period.