Interest Sensitive Stock

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Interest Sensitive Stock

A stock whose value is likely to increase or decrease substantially due to changes in interest rates. Most interest sensitive stocks represent publicly-traded companies with high rates of long-term debt. These companies' stocks decrease in value when interest rates rise because the higher cost of borrowing may result in lower profits and dividends. Conversely, their stocks rise on lower interest rates. For this reason, utility companies tend to have interest sensitive stocks.
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In April, Clearwater released a new dynamic interest rate shock analysis report that was used to satisfy the interest rate sensitivity section of the A.
Life insurers are more impacted than non-life insurers, but even within life insurance, interest rate sensitivity varies by product, with savings business being the most affected.
The second table is an interest rate sensitivity analysis that discloses the effects on after-tax net income (for the 12-month period after the reporting date) and shareholders' equity of hypothetical, instantaneous interest rate shifts as of the measurement date.
It seeks to achieve high current income while providing less interest rate sensitivity than traditional fixed income assets.
The interest rate sensitivity of the accountability side can be coordinated by bonds and other interest rate instruments.
Three main results are obtained: market risk is greatest for accident and health (A&H) insurers, followed by life (Life) and property and casualty (P&C) insurers; interest rate sensitivity is negative and greatest for Life insurers; and interdependencies in returns are significant with the magnitude being strongest between P&C and A&H insurers.
Economists at the Board of Governors of the Federal Reserve System developed a proprietary economic value of equity model called the economic value model (EVM), which is a duration-based estimate of interest rate sensitivity for each U.
Possible nominal issuers, feasibility determination, interest rate sensitivity and other financial scoping considerations, were also discussed.
Risk exposures: State and federal regulatory changes, changes/uncertainties in Environmental Protection Agency and Federal Energy Regulatory Commission legislation, exchange rate sensitivity, interest rate sensitivity, energy trading credit risk, financial derivative credit risk
As is discussed later, these differences can bear significantly on the interest rate sensitivity of consumers and the nature of competition in the credit card market.
Another Fed action that appears promising is its approach to measuring interest rate sensitivity for risk-based capital purposes.

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