As debt investors we are investing our clients» money in assets with an asymmetric pay - off structure.
As a debt investor your sole objective and focus is on receiving income and ensuring the security of the capital you've invested.
As a debt investor you must be prepared to ask yourself an important question when considering an investment in a corporate bond: Am I being adequately compensated for risk versus government bonds, equities and cash?
Not exact matches
Republican Senator Rand Paul pointed to the market sell - off last week
as evidence of an «undercurrent of unease» among
investors worried about government
debt and inflation.
Aspermont has announced plans to raise up to $ 10 million by offering shares to
investors and converting
debt,
as it seeks to shore up its balance sheet.
«If they do target aggressively the 2 percent inflation target, and undertake a significant amount of QE, that may have an impact on underlying JGB (Japanese government bond) yields
as investors become concerned over Japan's
debt,» he said.
U.S. government
debt prices were lower on Monday morning
as investors monitored U.S. - Russia relations and digest new earnings reports.
U.S. government
debt prices rose Wednesday
as investors started doubting whether President Donald Trump will deliver tax cuts and infrastructure investment
as he promised during his campaign.
However, recently, the economic recovery seen in Portugal since the sovereign
debt crisis has indeed begun affecting the way agencies such
as Moody's and Standard & Poor's see the economy, indicating that in the near future more
investors could be considering buying Portuguese bonds.
U.S. government
debt prices were lower on Wednesday morning
as investors digested comments from Federal Reserve Chair Janet Yellen.
Even though the dollar gets a bounce from the safety trade, especially when
investors are running from European default, the trend in the dollar is lower
as we dig ourselves deeper into
debt.
As investors seek to sell when prices are falling,
debt managers become trapped.
U.S. government
debt prices eased on Thursday
as investors digested the latest developments coming out of the White House.
U.S. government
debt prices were mixed on Friday
as investors awaited a vote on the Republican - led health - care bill.
The interest rate on 10 - year bonds was 1.79 % at the end of 2014 — about half
as much
as the federal government had to offer to get
investors to buy its
debt a decade ago.
Although there may not be a bond bubble, with
investors starved for yield, Gundlach predicts a potential bubble could form in credit risk
as investors increase their leverage on riskier
debt securities like junk bonds and emerging market
debt.
U.S. government
debt prices were mixed in choppy trade
as investors eyed fresh economic data and remarks from Federal Reserve officials.
U.S. government
debt prices rebounded on Tuesday
as investors parsed through disappointing housing data.
Most of the
debt — about 85 % — will be converted into controlling equity stakes for such
investors as Apollo Global Management, Babson Capital Management, and Guggenheim Investment Management.
TechCrunch reports that SoundCloud's founders told staff during one of the post-redundancy all - hands meetings that
investors had asked them in March to make the job cuts
as part of a $ 70 million (# 54 million)
debt funding deal that was first reported by Business Insider.
As a result, more entrepreneurs and businesses have access to outside capital than ever before and for the first time,
investors can efficiently build diversified portfolios of private equity and
debt investments.
In the absence of positive developments that shore up
investor sentiment, such
as a resumption of growth or rapid progress in achieving fiscal consolidation objectives, neither of which is likely in the current environment, the government is likely to become increasingly constrained with regard to the terms under which it is able to refinance maturing
debt.
As sovereign
debt problems in Europe and stagnant economic growth in America continue to dog the world economy,
investors naturally turn to safer havens like precious metals for security.
U.S. government
debt prices were flat on Friday
as investors awaited a vote on the Republican - led health - care bill.
Its self - belief — and that of its citizens, businesses and
investors — is slowly recovering but the scars from the crisis, such
as unemployment and high public
debt, remain.
In an era when the pension liabilities of local governments remain a concern,
investors may want to consider the
debt offered by established public enterprises — airports and utilities, for example —
as an attractive alternative to lease revenue and pension obligation bonds.
3M believes net
debt is meaningful to
investors as 3M considers net
debt and its components to be an important indicator of liquidity and a guiding measure of capital structure strategy.
Instead, structure the investment
as convertible
debt: a loan that gets swapped for equity in the next big round of financing, says David Cohen, a venture capital
investor and CEO of TechStars, a Boulder, Colorado - based angel fund.
Executives faced
investor headwinds,
as the fallout from the Facebook (FB) debacle, weak job numbers and the European
debt crisis had shaken
investor confidence in new listings.
U.S. government
debt prices were higher on Tuesday morning,
as investors looked ahead to fresh economic data and monitored tense trade talks between the world's two biggest economies.
The yield on a Treasury bill represents the return an
investor will receive by holding the bond to maturity, and should be monitored closely
as an indicator of the government
debt situation.
As a result, it is now clear that the U.S. is in the latter stages of the multi-year credit cycle, a period when rising corporate leverage negatively affects returns to corporate debt as investors demand higher risk premiums to compensate for the greater volatility created by increased leverag
As a result, it is now clear that the U.S. is in the latter stages of the multi-year credit cycle, a period when rising corporate leverage negatively affects returns to corporate
debt as investors demand higher risk premiums to compensate for the greater volatility created by increased leverag
as investors demand higher risk premiums to compensate for the greater volatility created by increased leverage.
During the second half of 2013, Chobani reported negative EBITDA (earnings before interest, taxes, depreciation and amortization) totaling $ 115 million
as its net
debt climbed, according to a presentation to TPG fund
investors obtained by Reuters.
Musk's latest noisy antics sank Tesla's stock nearly 7 per cent in New York on Thursday (Friday AEST),
as investors fretted about the billionaire innovator's failure to address Tesla's high
debt and under shooting of car production targets.
Half of millennials are carrying student loan
debt and the resulting financial pressures are so severe that fewer than two in five are saving for retirement, with many also delaying such key steps in life
as buying a first home and getting married, according to a major new online survey of 1,016 millennials conducted in April 2015 by the nonprofit
Investor Protection Institute.
The result in the early 1980s when
debt - leveraged buyouts really gained momentum was that financial
investors were able to obtain twice
as high a return (at a 50 % corporate income tax rate) by
debt financing
as they could get by equity financing.
By taking on more risk
as an equity
investor, one can economically participate in a company's value creation activities providing an enhanced return profile relative to a company's
debt offerings.
But taking out
debt to buy an asset
as volatile
as Bitcoin —
as some
investors seem to be doing with their credit cards — is risky on a personal finance level.
Another segment that also did well was Treasurys,
as U.S. government
debt remained the safe haven of choice for many
investors.
When liquidity is flowing, valuations don't matter
as much, and the risk of default goes way down for venture
debt investors.
Once the income statement returned to the red, ModCloth again tried raising equity — but prospective
investors cited the
debt overhang
as their reason for passing on a company whose unit economics were otherwise fundable.
«
As the U.S. economy slowed and Europe's
debt crisis worsened,
investors sought the safety of Treasuries and sold the bonds PIMCO had bet on, leaving the fund trailing 89 % of competitors in August and 67 % this year through Sept. 8.»
As HNA and other conglomerates make ever bigger bets, Chinese policy makers, economists and
investors are wondering if the
debt is sustainable.
Debt financing is basically money that you borrow to run your business (
as opposed to Equity Financing, where you raise money from
investors who in return are entitled to a share of the profits from your business).
But bond
investors have continued to flock to the
debt of the United States, which
as the world's largest economy has retained the perception of a financial safe haven.
It has raised more than $ 4 billion in outside equity and
debt financing; its
investors include a Who's Who of Silicon Valley venture - capital firms (Greylock, Sequoia Capital, Andreessen Horowitz) and a number of high - profile individuals, such
as Amazon founder Jeff Bezos.
Indeed, the strong growth of
investor housing loans has driven the growth in household
debt (
as a share of disposable incomes) over recent years and contributed to a rise in both housing prices and dwelling construction.
The past decade has been a relatively good time for companies to hold
debt as funding costs were low and bond
investors were willing to snap up virtually any new offering.
Investors should monitor current events,
as well
as the ratio of national
debt to gross domestic product, Treasury yields, credit ratings, and the weaknesses of the dollar for signs that default risk may be rising.
Gross writes that, «Soaring
debt / GDP ratios in previously sacrosanct AAA countries have made low - cost funding increasingly a function of central banks
as opposed to private market
investors.»