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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CLIC is a wholly owned life insurance subsidiary consisting primarily of closed block interest-sensitive and traditional life insurance and annuities.
Additional topics consist of the dynamics of derivative prices, pricing derivative products using partial differential equations, partial-integro differential equations, equivalent martingale measures, new results and tools for interest-sensitive securities, modeling term structure and related concepts, the classical and Heath-Jarrow-Morton (HJM) approach to fixed income, classical partial differential equation analysis for interest rate derivatives, relating conditional expectations to partial differential equations, pricing derivatives via Fourier transform technique, stopping times and American-type securities, and calibration and estimation techniques.
The easing in monetary policy that has already occurred since late 2011 has supported interest-sensitive spending and asset values," he said.
UFF Life also possesses a stable liability profile as interest-sensitive reserves as a percentage of total reserves are significantly lower than the industry average.
Other offsetting rating factors include the group s elevated exposure to structured securities within its fixed income portfolio and its large percentage of interest-sensitive liabilities, which may expose it to disintermediation risk and spread compression due to the continuing low interest rate environment.
SunGard expanded the policy administration functionality of its iWorks Compass solutions to support traditional life, whole life, annuities and variable interest-sensitive policy administration for U.
Effective February 27, 2008, the Company entered into $725 million (notional amount) of fixed-rate interest rate swaps in order to effectively stabilize the future interest payments on a portion of its interest-sensitive borrowings.
And if there's a pause in rate hikes, Washington says interest-sensitive stocks such as banks, brokerages, and insurance companies should benefit.
But because interest rates are thought to be trending up, some analysts predict that housing markets and other interest-sensitive sectors could lose some of their vigor over the course of the year.
The agency acquisition has done two important things for Oneida Bank, the magazine notes: first, it has boosted the bank's ratio of fee income to total revenues from 4 percent to about 21 percent The second result is a product of the first: As falling interest rates adversely affected the bank's interest-sensitive products, insurance income has provided a steady stream of revenue.
Despite tentative evidence of a slowing in certain interest-sensitive sectors of the economy and of accelerating productivity, the expansion of activity continues in excess of the economy's growth potential.
The Fed's goal is to raise rates that it directly controls and influence rates set by financial markets, such as 30-year mortgage rates, and thus slow economic activity in such interest-sensitive sectors of the economy as auto sales and home sales.