Sentences with phrase «high leverage implies»

High leverage implies a haircut to book value in bad times, because the value of the assets can go down dramatically.

Not exact matches

The lack of liquidity and higher leveraging of investments via crowdfunding platforms relative to REITs makes them much riskier, yet their incrementally higher promised returns and incrementally lower implied correlations with other asset classes don't seem to compensate for the added downsides.

But from the perspective of monetary policy transmission, the higher level of private sector leverage also does imply a stronger impact from interest rate changes.

Adding in record bond issuance in recent years, a financing option not common in 1990s, «overall leverage is even higher today than implied by traditional measures of bank lending,» the report explained.

Yields are also higher for the S&P U.S. Issued High Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate dHigh Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate dhigh - yield corporate debt.

Higher implied volatility, higher leverage, and lower stock prices lead to higher spHigher implied volatility, higher leverage, and lower stock prices lead to higher sphigher leverage, and lower stock prices lead to higher sphigher spreads.

When the interest rates are low enough to allow for positive leverage, investors can boost significantly their return on equity by borrowing a high percentage of the acquisition price (which implies high LTV ratios).