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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Risk exposures: State and federal regulatory changes, changes/uncertainties in Environmental Protection Agency and Federal Energy Regulatory Commission legislation, exchange rate sensitivity, interest rate sensitivity, energy trading credit risk, financial derivative credit risk
This may provide some valuable information on the strain rate sensitivity of the material.
Your decision to use either approach to managing your rate risk depends on your company's rate sensitivity.
To date, most examinations into the interest rate sensitivity of commercial bank returns have employed a two-factor pricing model in which an interest rate variable is added to the simple market model
These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes.
With an anticipated payback in a short period of approximately one year, a reduction in interest rate sensitivity of our liabilities, and no negative effect on stockholders' equity, we view the repositioning of our available for sale portfolio as being very beneficial for Oriental.
Finally, management plans to purchase a series of interest rate swaps, caps, and floors in an attempt to reduce interest rate sensitivity.
Offsetting these positive rating factors are the five-year declining trend in premium and deposits, interest rate sensitivity due to increased fixed deferred annuity balances without surrender charge protection and continued losses from the group insurance segment.
Fitch observes the investment portfolio's significant allocation to zero coupon and callable securities, and believes that the company has relatively high levels of interest rate sensitivity as well as reinvestment risk.
In an effort to reduce its interest rate sensitivity, NYB extended the maturities of borrowings and used proceeds from the sale of securities to reduce short-term borrowings; nevertheless, a high proportion of short-term funding remains.
The risks and uncertainties include the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes.
That said, further earnings stress either derived from its interest rate sensitivity or from a material increase in credit costs, would pressure CBH's ratings.