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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HYIH seeks to track the performance, before fees and expenses, of the Solactive High Yield Corporate Bond - Interest Rate Hedged Index, which aims to mitigate exposure of interest rate sensitivity across the yield curve in a rising rate environment.
Given the less-than-ideal outlook, life companies will need to better manage interest rate sensitivity by redesigning their products.
Moreover, BMO S&P/TSX Laddered Preferred Share Index ETF (ZPR) was the top selling individual ETF in Canada, attracting investors who were seeking diversified yield sources and lower interest rate sensitivity relative to fixed income.
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.
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.
Alpha Bank London Group reportedly required detailed analysis on interest rate sensitivity to complete new interest rate gap reporting for the UK Financial Services Authority (FSA) regulatory perspective and for internal management reporting purposes.
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.

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