The suitable debt fund category for this case would
be Short Term Debt funds.
Non-financial commercial paper
is short term debt (maturities less than 270 days) issued by nonfinancial corporations.
Dear Ajay, I believe it's a Short term Debt fund, its benchmark is Crisil — Short term Bond.
Whether it's a short term debt such as, a student loan or car loan, or a long term liability like a mortgage or numerous other sources of debt, a life insurance policy pays down the debt on behalf of the person who took out the policy in the first place.
Not exact matches
According to Arif Mulji, vice-president of business development, Amur's fortunes vividly reflect some of the forces that have dominated Canada's economy in recent years: Its customers tend to
be people looking for
short -
term mortgages, home renovation loans or
debt consolidation.
In the
short -
term, however, this increased leverage may actually
be bullish for junk bonds, corporate bonds, emerging market
debt and mortgage - backed securities as it brings higher prices and lower yields, he said.
Governments need to retrench fiscally, but this should not
be pursued in the
short term while the world economy
is in danger of falling into recession when heavy
debt loads
are to
be paid.
In software, there
's a notion of «technical
debt» — the
debt a company accumulates by using sloppy, get - us - there code in the
short term that really should
be rewritten at some point.
While both plans would increase the
debt ceiling, ratings agencies have said a
short -
term increase such as the one proposed by House Republicans may not
be enough to protect the U.S. from a ratings downgrade.
For instance, under recent scrutiny
are negotiable certificates of deposits (NCD), a kind of
short -
term bond, and niche products like perpetual notes, a long -
term debt instrument that can
be listed as equity rather than
debt on balance sheets.
There
are a handful of alternatives to help you reduce your
debt burden in the
short term.
It
's important to note that
short -
term debt relief
is not without long -
term pitfalls.
When working on
debt reduction, it
is important that you have an adequate cash cushion or money in the bank for any
short -
term emergencies that may arise.
Current liabilities include notes payable on lines of credit or other
short -
term loans, current maturities of long -
term debt, accounts payable to trade creditors, accrued expenses and taxes (an accrual
is an expense such as the payroll that
is due to employees for hours worked but has not
been paid), and amounts due to stockholders.
His deep - value philosophy can
be boiled down to four points: he
's looking for high - quality stocks that protect against the downside; he wants businesses where
short -
term issues have caused investors to abandon the company; he wants to wait until valuations
are «out - of - this - world» cheap, and he tries not to pay attention to macro issues like eurozone
debt or Chinese growth.
Another type of
short -
term fund to consider as rates
are climbing: those that invest in floating - rate
debt, also known as bank loans.
«Too many borrowers seeking a
short -
term cash fix
are saddled with loans they can not afford and sink into long -
term debt,» CFPB Director Richard Cordray said in a prepared statement.
It
's a (mostly)
short term, higher risk, higher reward place to invest cash that has a low correlation with the stock market, but
is far more passive than buying and managing properties, has more opportunity for diversification than private placements (minimums of 5 - 10K, rather than 100K), and most of the equity offerings (and all of the
debt offerings) provide monthly or quarterly incomes.
A rapid rise in
short -
term yields in U.S. government
debt is restoring their appeal.
A class of financial metrics that
is used to determine a company's ability to pay off its
short -
terms debts obligations.
To
be clear though, preferred stockholders generally don't have a preference over traditional
debt or convertible notes (another form of
short -
term debt), so don't forget to check whether a company has outstanding
debt obligations.
While aiming for a high credit score
is a worthy goal, sometimes a lower credit score in the
short term as a result of consolidating
debt may
be worth the sacrifice to save money on interest payments and pay off your
debt faster.
Even though the company has a strong
debt - to - equity ratio, the quick ratio of 0.17
is very weak and demonstrates a lack of ability to pay
short -
term obligations.
However, one of the benefits of refinancing
is that you have the option to choose to do so with a
shorter term, allowing you to get rid of
debt faster.
Despite the fact that XOM's
debt - to - equity ratio
is low, the quick ratio, which
is currently 0.52, displays a potential problem in covering
short -
term cash needs.
Despite the fact that PG's
debt - to - equity ratio
is low, the quick ratio, which
is currently 0.55, displays a potential problem in covering
short -
term cash needs.
He also concludes that «raising its (the government's) deficit target back up to 1 per cent (from zero) makes more sense when there
are other
short -
term - pain - for - long -
term - gain initiatives that
are needed to address more pressing objectives than lowering a
debt ratio that
is already the envy of the world.»
And these deficits
are now
being financed in riskier ways: more
debt than equity; more
short -
term debt than long -
term debt; more foreign - currency
debt than local - currency
debt; and more financing from fickle cross-border interbank flows.
At the same time, what
is counted as cash on the sidelines, whether in money market funds, or as tiny balances in equity funds,
is nothing but a mountain of
short -
term debt securities, mostly Treasury bills, that have
been issued and must
be held by somebody until they
are retired.
Although supply has returned to the market over the
short term — due to a combination of increased production from US shale producers and the easy availability of capital via
debt and equity markets — I
'm expecting supply growth to moderate over the long
term as capital becomes more expensive and less available to marginal energy producers.
I don't know, but it
's raising the cost of
debt servicing more than expected for lots of banks and businesses that borrow in the
short -
term debt market.
A convertible note
is a form of
short -
term debt that converts into equity, typically in conjunction with a future financing round.
Our experts discuss the market perception vs. reality that inflation
is accelerating, the supply of US treasuries and the impact of repatriation, and the demand for
short term debt.
CRL's Day says that the
short -
term nature of payday loans
is deceiving; the duration masks the fact that the cost of the loan
is equivalent to triple - digit APRs, and many borrowers find that these loans rope them into months» worth of
debt a few weeks at a time.
Most projects
are short -
term transactional real estate
debt for rehab, refinancing and bridge loans.
The federal government
is on track to achieve its target
debt - to - GDP ratio of 25 per cent by 2021, evidenced by projected surplus budgets in the very
short term.
If you
're looking to invest in
short -
term debt with generous yields (the yields posted with each deal
are net the 1 % — 2 % fee), then PoL may
be right for you.
Short -
term debt is used to finance assets that can
be made liquid quickly (turned back into cash)-- examples include accounts receivable amounts, tax credits, newly signed contracts and inventory.
Saudi Arabia
is «attractive in the
short term,» says Butterfill, «but a lot depends on the Saudi Aramco deal; and there
are issues about transparency,
debt levels and political certainty.»
A convertible note
is a form of
short -
term debt that converts into equity, typically in conjunction with a future financing...
Mak said Buffett's endorsement
is crucial in helping to alleviate the firm's reliance on
short -
term debt to fund research and development in its automobile business.
It
's a challenge for Canadians still struggling to cope with the record amounts of consumer
debt they amassed after the 2008 financial crisis because lenders use their prime rate as a benchmark for setting some other
short -
term rates including variable - rate mortgages and lines of credit.
Emilie Christenson, owner of umbrella company Carlie Devon,
is another example of a business owner who escaped
short -
term debt and climbed the ladder all the way up to an SBA loan, saving money and opening up her business to tons of new opportunities.
Looking to grow, Brian took out a loan with a
short -
term lender — but
was soon stuck in a cycle of expensive
debt.
That means the loan
term is 30 years and it will take you 30 years to repay it, unless you refinance or you prepay your mortgage and knock out the
debt in a
shorter time.
Beijing
is working on fixes for internal
debt issues, such as turning
short -
term bank
debt into long -
term bonds and redirecting credit to the private sector and households.
The rotation from long to
short term is much more pronounced when it comes to funds dedicated to investment grade corporate
debt.
As the Fed begins raising rates again, however, the environment for
short -
term debt might not
be quite so positive, depending on how high they go.
Central bank assurances that Portugal's Banco Espirito Santo SA
is protected after a parent company missed
short -
term debt payments
are failing to ease creditor concern they may also suffer losses.
A bond rated BBB or higher (A-3 or higher, for
short -
term debt)
is considered investment grade.