He continued: "The company's large exposure to Asia prospered from a combination of solid stock selection and a more favourable environment for financial and other interest-rate sensitive
That is evident in the sectors that are taking it on the chin -- especially heavily indebted industrial companies, and the interest-rate sensitive
housing and automobile sectors.
US stocks dipped in a choppy session on Friday after the latest round of earnings reports, as a fall in the consumer discretionary sector and interest-rate sensitive
stocks outweighed gains in healthcare names.
Whether or not interest rates will continue to rise remains uncertain--for clients who are concerned about interest rate risk, however, interest-rate sensitive
product features provide one more option for customizing an annuity product to the individual client's needs, while also providing for future retirement income.
On the stock market, Neri said the decision could weigh on local equities and provide more room for correction as property shares and other interest-rate sensitive
sectors could see a pullback.
"Commercial real estate finance is interest-rate sensitive
and longer-term oriented," the Commercial Real Estate Finance Council wrote in a media statement.
The Bombay Stock Exchange's index of leading shares fell by as much as 2.88 percent to a day's low of 20,051.43 points, with interest-rate sensitive
stocks in banking, auto and property hardest hit.
The extent to which a particular bank needs to curtail its lending to achieve a leverage tar get in the aftermath of an interest rate increase depends on the difference between the value of its short-term assets, which generate interest-rate sensitive
income streams, and the value of its liabilities, which are similarly interest-rate dependent.
While interest rates are a key area of concern for life insurers at this time, a new report said interest-rate sensitive
life insurance premiums constituted only 4.1 percent of total premiums of large insurers for 2012.
Among other interest-rate sensitive
stocks, DLF slumped 7.2 per cent, while Unitech dropped 5.4 per cent.
Despite signs interest-rate sensitive
parts of the economy are starting to respond to the interest rate cuts since late 2011, the RBA remains uncertain about the future resources investment and the ability for non-mining activity to strengthen sufficiently, to offset the effects of waning mining investment.