Breakeven rate

Breakeven rate

The difference in yield between inflation-protected and nominal debt of the same maturity. If the breakeven rate is negative it suggests traders are betting the economy may face deflation in the near future.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
References in periodicals archive ?
The 10-year breakeven rate (which is where traders of TIPs estimate consumer prices will trend over the next decade) stood at 1.66% on Aug.
So, for Dodong to be happy, he should invest the proceeds in an instrument that gives him a rate greater than the sum of the breakeven rate (12.95 percent) and the risk-free hurdle rate (18.81 percent or 19.09 percent, depending on how many days are assumed to be in a year).
Financial metrics are sound with a fiscal 2017 senior debt service coverage ratio (DSCR) of 1.8x (1.5x on a total basis), leverage of 10.5x (12.2x), and a low revenue breakeven rate of just 0.2% (0.7%).
Meanwhile the 10-year TIPS inflation breakeven rate surged to 2.18%, highest since February, amid elevated commodities/oil and steel/aluminum sanctions, pressuring long yields higher.
5yr, 5yr Forward breakeven rate shooting from 1.5% in early December to over 2.15% today.
10-year inflation breakeven rate, or the market's expectation for the average inflation rate over the next 10 years.
Spot rates for very large crude carriers (VLCCs), with a capacity to transport 260,000 tones of oil, have recently dropped to a loss-making $13,000-14,000 per day, far below Frontline's cash breakeven rate of $21,600.
An estimate of future inflation, based on a model that combines the inflation forecast from the Philadelphia Fed's Survey of Professional Forecasters and the implied breakeven rate of inflation between nominal Treasuries and TIPS, suggests that inflation will run around 2.3% over the next five years.
Have you read the study with the weighty title of "Fully Capitated Payment Breakeven Rate for a Mid-Size Pediatric Practice?" (Pediatrics.
The euro zone five-year, five-year breakeven rate, a key market-based expectation that predicts long-term inflation, dipped to 1.39 per cent on Wednesday, well below the 1.49 percent when the ECB announced its March package.
Between mid-March and early July, the 10-year inflation swap rate increased by about 30 basis points to 2.16 percent, whereas the 10-year TIPS breakeven rate rose by 27 basis points to 1.91 percent.
For example, the 10-year TIPS breakeven rate rose by 0.4 percentage points to 2.6 percent between August 30 and September 14, 2012.