Sentences with phrase «term rising interest rates»

Not exact matches

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?

«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.

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

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.

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.

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.

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 %.

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.

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

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.

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

The biggest disadvantage of buying a Treasury bond is that the interest rate could rise during its term, which means your money might be tied up in an investment that pays 2.75 percent interest when you could be getting 4 percent or 5 percent — or more.

Overall, the solution for the rising mortgage interest rates forecasts to consider refinancing your variable - rate loan to a fixed - rate solution without extending the loan term.

For bond investors with a short - term investment horizon, it is absolutely critical to think about rising interest rates.

The IDI options, which are based on the same short - term interest rate, rose 96.2 % to 98.5 million contracts, making it the third most actively traded interest rate options contract in the world.

In terms of the interest rate risks, It's more of an opportunity cost than a real «hit from rising interest rates», assuming you hold to maturity.

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.

The interplay between these dynamics will play out over 2018, but as rates eventually rise, financial stocks could be poised to benefit given the long term relationship between interest rates and banks» net interest margins (NIMs).2

Bond prices rise when interest rates fall, and vice versa; the effect is usually more pronounced for longer - term securities.

If interest rates rise during your CD's term, you can request to use your bump.

The fact is that despite the plunge in short term interest rates, long term yields and mortgage rates have been flat or rising.

In addition, a rise in long - term interest rates seems inevitable sooner or later, either because of inflation or because the Federal Reserve backs away from its easy - money policies.

Another unusual aspect of current global interest rates is that long - term rates, which are set by the demand for and supply of funds in capital markets, have remained quite low in the face of rising official interest rates.

If you have an adjustable - rate mortgage, and after your initial fixed - interest rate term ends, your interest rate can rise.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

They also vowed to keep short - term interest rates low, at least until the jobless rate hits 6.5 percent or inflation rises above 2.5 percent.

Blackrock thinks that with low inflation and low expectations for growth, long - term interest rates won't necessarily rise in step with Fed rate hikes.

Bond market geeks refer to this as a «flattening of the yield curve,» meaning that shorter - term interest rates rose while longer - term interest rates fell.

However, as the global economic recovery continues, long - term interest rates in Canada and elsewhere will nonetheless start to slowly rise.

For much of the past two years, the discounts offered by automakers have remained at levels that industry analysts say are unsustainable and unhealthy in the long term... Sales are expected to drop further in 2018 as interest rates rise and more late - model used cars return to dealer lots to compete with new ones.

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.

We expect long - term interest rates will rise this year, if only modestly.

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.

(Longer - term bonds risk a price decline if U.S interest rates should rise.)

(Longer - term bonds risk a domestic dollar - price decline if U.S interest rates should rise.)

Since U.S. government debt is not long - term in nature, higher refinancing costs are extremely vulnerable to rising interest rates.

The report says that Canada's historically low interest rates are not sustainable and expects that longer term rates will begin to rise later this year in anticipation of the Bank of Canada's move to tighten policy in 2015.

The risk you take when you invest in anything but the shortest - term bond funds is that when interest rates rise, the underlying principal value is likely to fall.

The dollar bond market has turned cold for Indian firms after a record 2017, with rising global interest rates, geopolitical concerns and market volatility prompting would - be financiers to demand either a higher yield or invest only in short - term paper maturing in two years.

Long - term treasuries will likely still work as ballast when it matters most (global risk - off events), but we see short - term U.S. debt now offering compelling income, along with a healthy buffer against the risk of further interest rate rises.

While rising rates hurt bond prices in the short term, for long - term investors the higher interest payments can eventually benefit performance.

For example, they tend to cause the prime interest rate to rise, which affects credit card and short - term loan interest rates.

Many analysts expect long - term interest rates to rise later in 2015, due to economic gains and actions taken by the Federal Reserve.