Sentences with phrase «to a rise in interest rates»

In response to the most recent rise in interest rates, stock price volatility increased causing investors to become more cautious about the stocks in their portfolios.
A fixed rate is almost always the superior choice, especially considering the predicted rise in interest rates in coming years.
Going for fixed interest rates is always better as you can check damage in case of rise in the interest rates.
You should also pay off the loan as quickly as possible to reduce the risk of a sharp rise in the interest rate.
All this debt makes companies even more vulnerable to a sudden rise in interest rates.
But it's equally important to note that a gradual rise in interest rates can still have an impact on financial markets and asset prices.
Although I do not see any significant rise in interest rates anytime soon, I do see a very serious problem brewing with all the household debt low interest rates have created.
Also looming ahead is the inevitable rise in interest rates from current historic lows.
The rather abrupt rise in interest rates this year has probably also played a part, and is certainly responsible for some of the increase in the stock market's volatility.
Both have been affected by the impact on household spending power of higher oil prices, a modest rise in interest rates, and slower gains in wealth than had occurred earlier.
The steady increase in shorter - maturity bond yields provides a thicker cushion against concerns around further rises in interest rates.
Therefore, a general rise in interest rates can result in the decline in the bond's price.
The problem is almost no one is predicting a rapid rise in interest rates.
With negative amortization, a persistent rise in interest rates reduces the equity in the house unless the negative amortization is offset by house appreciation.
For example, a 1 % rise in interest rates leads to larger losses when rates are at 3 % than you would see with rates at 6 %.
A 1 % rise in our interest rates today would add # 10 billion to family mortgage bills alone, at the worst possible time.
In this example, the 1 % overnight rise in interest rates cost you a «point» out of 100.
I'm very surprised that REITs are viewed as a strong «sector to buy» given the likely rise in interest rates.
The resulting rise in interest rates has already been sufficient to feed a small but noticeable rise in mortgage rates.
A healthy economic expansion and a moderate rise in interest rates should provide a favorable backdrop for housing.
With the recent rise in interest rates, it's more important than ever to make sure your money is growing in one of the best savings accounts.
But it's equally important to note that a gradual rise in interest rates can still have an impact on financial markets and asset prices.
Any significant rise in interest rates would hurt the ability of some borrowers to repay their mortgages.
Even a modest rise in interest rates will send large flows of money to the banking sector.
The steady increase in shorter - maturity bond yields provides a thicker cushion against concerns around further rises in interest rates.
CFO of $ UPS talks about two scenarios for rises in interest rates: good: improvement in productivity, bad: stagflation #BBwash #duh Apr 30, 2013
Still, the Fed also earns an interest spread between its assets and its liabilities, providing about 3 % annually (as a percentage of assets) in excess interest to eat through, which would allow a further 50 basis point rise in interest rates over a 12 - month period without wiping out that additional cushion.
With a possible rise in interest rates on the horizon and the unknown effects and timing of tapering...
Yes, you'll pay a decent chunk of change in interest over the life of the loan, but you'll also be protected from rises in interest rates during that long period of time.
At the 2015 TD Ameritrade National Conference in San Diego, CNBC Digital Senior Editor at large Jim Pavia interviews four members of the CNBC Digital Financial Advisors Council about the impact of a possible rise in interest rates by the Federal Reserve.
(As an example, one can't estimate the withdrawal function on deferred annuities because haven't had a large sustained rise in interest rates since the product was created.)
Yun adds, «The economy can handle the inevitable rise in interest rates as long as commercial rents steadily rise to generate investor returns.»
But it is probably not right to make the assumption about «a given rise in interest rates».
Stocks were pressured by a fast rise in interest rates last week.
Builders have blamed a 1 percentage point rise in interest rates between May and September as one big culprit in slowing new - home sales in their markets.
Of particular relevance, under the current monetary regime it is not only possible for a large, general increase in the desire to save to be accompanied by rising interest rates, it is highly probable that when a large rise in interest rates happens it will be accompanied by a general desire to save more.
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 1981.
A sustained rise in interest rates of just one per cent could cause Toronto area home sales to tumble by 15.3 per cent and prices to decline by 5.8 per cent by 2015, predicts a veteran housing analyst.
FRN notably provides insurance against an unexpected future rise in interest rates and, importantly, Convertibles should also outperform in a rising rate environment.
However, given the recent appreciation of stocks to the perceived point of overvaluation, and poor prospects for bonds in light of an anticipated rise in interest rates, many investors may hesitate to make early contributions.
PitchBook senior analyst Garrett Black said in a statement that three factors — private companies staying private, volatile public markets and a looming rise in interest rates — are driving the trend.
That tantrum refers to the potential reaction of investors and global markets — accustomed to years of easy money — in the face of a simultaneous rise in interest rates and yields in the US, Europe and Japan.
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