Sentences with phrase «because high leverage»

Simply, because high leverage infers high risk.

Not exact matches

Think about how many assets you currently have that are under - leveraged because the costs involved in buying, selling, or trading them are too high.

«What we're seeing is a textbook implosion with regard to exploration and production capital spending domestically because the industry was leveraged to very high oil prices,» says Bill Herbert, a senior researcher at Houston oil and gas investment bank Simmons & Co..

While the market is interpreting the tax plan as a steepener for the Treasury curve, fundamentally, it should be positive for the credit securities because of the anticipated higher after - tax earnings and supply constraints due to a reduced incentive to leverage.

High interest rates in the defence of the exchange rate were more damaging to these vulnerable economies because of their high corporate leverHigh interest rates in the defence of the exchange rate were more damaging to these vulnerable economies because of their high corporate leverhigh corporate leverage.

Sometimes a larger allocation to precious metals is recommended — either because precious metals are highly undervalued against other assets or there's a high financial risk (e.g. excess leverage in the markets).

When you looked at the overall market, leverage was skewed higher because of energy.

Higher leverage can be extremely risky, but because of round - the - clock trading and deep liquidity, foreign exchange brokers have been able to make high leverage an industry standard in order to make the movements meaningful for currency traders.

Because of the high leverage, management can not make any mistakes in reserving.

I really hope he can put it together, because he could be a dominant high leverage reliever and it would be a nice gift from the Tigers.

It's good news for the NBA if only because it means more high - leverage situations for Dirk and his winding, falling fadeaway.

They also have very high debts because their owners are exploiting the club and its fans in a pretty outrageous way, using (unlike either Kroenke or Usmanov) a leveraged method of ownership that sees millions disappear from the club every month.

«But at the same time, they will be able to leverage a certain amount of social data — what's being shared, what's being viewed — and there is a possibility that they'll get a higher adoption rate because it's within Facebook.»

Your leverage is likely to be highest when it is time for you to renew your contract, because your department is unlikely to be eager to do another search.

These short bursts of optimal loading also provide a high - intensity workout, stimulating the cardiovascular system, and leveraging the benefits referenced by Dr Doug McGuff, «The low resting heart rate and others markers for good health are not really something that's happened in the cardiovascular system, but because the energy producing part of the body like the mitochondria, and all the enzymes involved in the production of energy, are upregulated (due to quality of mechanical work with muscle) and become more powerful and efficient.

The operative word here is «representative,» as the teacher candidates are not assessed by observing their work in an actual classroom, with real live children... «Because a teacher's interaction with students is an integral part of certain high - leverage teaching practices, ETS and TeachingWorks are designing and prototyping virtual classrooms with interactive avatar students.

Unfortunately, the publishers, because of leveraged buyouts and high debt loads, not to mention substantial physical infrastructure, have decided to focus on selling bestsellers as their model.

Pirate Capital, Basic Capital, and let's mention the Goldman Sachs funds again because the leverage was higher than expected.

The regulators haven't done well in setting up rating agencies of their own, so let the rating agencies continue on, but let the regulators be smarter in how they set the capital levels (higher for structured products than for corporates and munis, because of loss severity leverage), and what they allow regulated entities to invest in.

Many articles pushing you to keep debt while contributing to an RRSP base their reasoning, not on anything specific to RRSPs, but on the general argument that «You should invest with leverage because your investment returns will be higher (on average) than the cost of debt».

Is it because the higher ROE is achieved via leverage, is therefore riskier, and requires a lower PE?

We absolutely are looking at the kind of changes that would take on a level of credit risk that would be prudent, but clearly, I would expect that the changes we're making would cause bad debt to go up higher, but hopefully with improve the top line and improve the bottom line because essentially it would allow us to leverage admissions and advertising spend, occupancy spend, even academic spending to the point of dealing with more fuller classrooms.

However, high yielding stocks are a VERY crowded trade because the Central Banks have kept interest rates low, probably in large part to facilitate servicing of the national debts and to allow the investment banks to recapitalize and at least partially recoup their bad leveraged bets.

Don't think that just because Forex brokers allow you to use high leverage with a low minimum deposit that you can «Get Rich Quick ``.

Options contracts should be considered very risky if used for speculative purposes because of the high degree of leverage involved.

However, when used for speculation, they carry a high level of risk, namely because of leverage.

Several credit agencies downgraded Southern's debt ratings and outlook because of the company's higher financial leverage resulting from its acquisition of AGL.

And because of that money has flown into high yield bonds and leveraged loans.

No doubt Ed will have more info on this, but the paper «Betting Against Beta» by Frazzini & Pedersen to which he refers above can be found at http://www.econ.yale.edu/~af227/pdf/Betting%20Against%20Beta%20-%20Frazzini%20and%20Pedersen.pdf The basic idea of the paper is that investors are apt to bid up high beta stocks because it's a way of leveraging their portfolio without actually borrowing to invest.

Now, in mid-March, spreads were particularly high, because mortgage REITs and other leveraged holders of agency mortgages were forced to sell because of rising haircuts on repo financing.

I have a trading scheme that is very profitable but is also really dangerous because it opens a lot of trades at the same time with high leverage and else.

Because options are leveraged contracts, the amount of money you can make or lose with them is very high.

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

Having run the GIC desk of a small well - capitalized insurer, with lower ratings, less leverage, and a higher ROE than other larger competitors, I was / am biased against firms with bad credit profiles that get good ratings only because they are big.

Because of the cyclical nature of the business and the high level of operating leverage ABH needs a very conservative capital structure to reduce the possibility of future bankruptcy.

there is a glut of housing (many empty) because of overbuilding... because everyone saw the «rapidly rising prices» of residential or rental real estate and wanted a piece of this HIGH RETURN, LOW RISK investment... add to this the banks relaxing credit standards and issuing mortgages... because, hey, real estate just keeps going up, up, up... and with that leverage, etc..

Many value investors got burned because they invested in financial companies with high amounts of leverage.

Options trading involves additional risks because of the low margin deposits required and the extremely high degree of leverage that options trading may involve.

«Because of our high - quality grooming products that we have started to establish in the market place, we were able to leverage our reputation with our grooming products to launch our YumZies treat line,» Schwimmer says.

Because there's so much potential to wreck things, I needed a plan that leveraged all the knowledge I had about the 14 years high - level play that came before.

The spear is really interesting because it doubles as a ranged weapon and as leverage to get up to a higher level.

Likewise, when some critics argued that solar panels are too expensive, and that feed - in tariffs are consequently a rip - off because the cost per CO2 - ton saved is too high — they ignore the idea of leverage and tipping points.

He sees a need for high leverage interventions (with strong governance foundations) because economic and climate inertia mean mitigation is now too late or slow.

While merging with another solo can minimize the training / mentoring problems, you can't leverage this person as much because they'll require a higher salary.

If it turns out that the outsourcing contract is not as profitable as the service provider has originally anticipated, this termination right provides the service provider significant leverage in renegotiate the terms (including pricing) and the service provider will be able to extort higher pricing from the customer simply because the customer heavily relies on the service provider to keep its operation running.

Their premiums are often lump - sum payments and significantly higher, especially early in, than that of a term life policy, but because once the investment has been made, it is made, they can be used as security for loans and leveraged in a variety of ways to free up liquid capital, and their cash value is tax deferred.

For executives at a C - suite level (CEO, CFO, CLO, CTO, etc.), delegation is common, with numerous candidates leveraging the services of an executive resume writer because they're accustomed to outsourcing tasks of high complexity.

This could be because CMHC has been mandated by the federal government to curb the disturbing rising debt load trend among Canadians that has occurred during the last decade; and / or wants to trigger the premium it receives for «high - leverage» loans.

A good portion of those loans, perhaps 25 to 30 percent, face challenges because leverage is very high at 90 to 100 percent or they are completely underwater at 150 or even 200 percent, she says.

Personally, I prefer to leverage because the returns end up being higher in the end.