A short-duration fixed-income strategy for up to three years, WINC seeks to generate current income via a diversified portfolio with an emphasis on low interest rate sensitivity
, higher credit quality and active credit selection.
At issuance, Fitch accounted for increased refinance risk in a higher interest rate environment by reviewing an interest rate sensitivity
that assumed an interest rate floor of 4.5% for multifamily properties, in conjunction with Fitch's stressed refinance rates, which were 8.5% on a weighted average basis.
JP Morgan Asset Management has announced the launch of fixed-income EFT, JPMorgan Ultra-Short Municipal ETF (JMST), an actively managed fund that focuses on tax-exempt yield and invests in municipal securities with less interest rate sensitivity
, the company said.
It also stands to benefit from interest rate sensitivity
and tax reforms, Dai points out.
(3) When studying changes in the interest rate sensitivity
to macroeconomic news at the ZLB, Swanson and Williams (2014a, 2014b) only considered central banks providing qualitative forward guidance (i.e., the Federal Reserve, the Bank of England, and the ECB), not quantitative forward guidance as we do in this article.
The Declining Interest Rate Sensitivity
In this case, DC plan sponsors should better understand "the central role that interest rates play in determining how much retirement income a given account balance will be worth in the future." The key lies in targeting interest rate sensitivity
in the fixed-income portfolio, simply by matching the duration of the bond to that of the liability.
Given the less-than-ideal outlook, life companies will need to better manage interest rate sensitivity
by redesigning their products.
These changes should be informative even though the model measures interest rate sensitivity
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.
Chaney and Hoesli (2010) focus on the interest rate sensitivity
of real estate and find that for a typical office property this stands 13.1 percent, with a standard deviation of 7.8 percent.