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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Insurers' diverse business mix, significant earnings from sources that are not interest-sensitive and still strong capital positions support the Stable rating Outlooks.
MetLife carved out the Brighthouse operations partly because of concerns about Dodd-Frank Act rules that may subject "systemically important financial institutions" to extra layers of regulation, and partly because of concerns about the effects of prolonged low interest rates on interest-sensitive insurance products.
Such long-term gains could positively affect interest crediting rates for holders of fixed annuities, universal life insurance and other interest-sensitive protection products.
CLIC is a life insurance business consisting primarily of closed block interest-sensitive and traditional life insurance and annuities.
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.
18857), they conclude that the income gap--that is, the disparity between the interest-sensitive assets and liabilities--significantly affects the lending channel.
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.
Besides, the bank's loan book hints at an increase in concentration, higher than its peers, in cyclical and interest-sensitive sectors such as commercial real estate and iron and steel, in addition to textiles where it continues to have a high exposure.