Sentences with phrase «to benefit from rising rates»

As their name suggests, floating - rate bonds have variable coupons, and actually benefit from rising rates.

This San Francisco — based bank will benefit from rising rates in U.S., home prices and consumer spending stateside.

Even though the Vanguard ETF holds plenty of dividend stocks in areas that aren't rate - sensitive or can even benefit from rising rates, many of the dividend - paying giants in its portfolio were among those stocks that led the market to the downside.

Large depository institutions suchs as Bank of America, JP Morgan Chase and Citibank may benefit from rising rates when the shape of the Yield Curve becomes steep, i.e. when the difference between short term interest rates and long term interest rates is large.

However, if they issued long - term debt at low rates, they could definitely benefit from rising rates by paying lower interest on debt than their competitors who may issue debt at much higher rates.

Another portfolio holding is Manulife Financial Corp. (MFC / TSX), which like most insurers, benefits from a rising rate environment.

This involves both limiting duration exposure in most economies — we own no U.S. Treasuries or Japanese government bonds — and using currency and other exposures to potentially benefit from rising rates.

Without question, ETFs that hold more life and financial insurers than P&C companies will see the biggest benefit from rising rates because the long - end of the curve is expected to rise faster than the short - end of the yield curve.

REITs holding properties with short - term leases, as indicated by the Dow Jones U.S. Select Short - Term REIT Index, actually benefited from the rising rates, with returns exceeding the broad REITs market for all cycles analyzed.

Lebenthal also bought Goldman Sachs since he believes the bank, and the financials sector more broadly, will benefit from rising rates.

Although the energy sector XLE, -0.23 % has climbed 11.6 %, outperforming other sectors in the past month, financials XLF, -0.85 % which were expected to benefit from rising rates, have lagged, producing the fifth weakest performance among the S&P 500's 11 sectors, according to FactSet data.

Countless articles have been written advising investors on ways to set up their portfolios to benefit from rising rates.

REITs with short - term lease durations, on average, are less sensitive to interest rates and could benefit from rising rates.

«They will benefit from rising rates, as U.S. banks are more inclined to invest in the bond market — borrow short and lend long — than their Canadian counterparts,» Levine said.

Generally speaking, financial stocks, which include banks and insurance companies, benefit from rising rates.