«The biggest challenge is delevering, but it presents the opportunity of
borrowing at a lower rate of interest,» Gross said, noting that investors must be sure that the assets they're buying this year are creditworthy and present low risk exposure.
Not exact matches
The case for
lower interest
rates is weaker, but most forecasters still expect the Bank
of Canada will wait
at least a year to raise
borrowing costs.
Carry trade is a trading strategy that involves
borrowing at a
low interest
rate and investing in an asset that provides a higher
rate of return.
This is because most private student loan lenders offer extended repayment plans and variable interest
rates that seem
lower at the onset
of a loan refinance, saving borrowers money on their monthly payment as well as on the total cost
of borrowing over time.
So why are all political parties afraid
of borrowing money
at historically
low interest
rates to pay for needed infrastructure spending that might actually pay for itself through higher productivity and higher income, without any cost to the taxpayer?
Achievement
of these goals was considered by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration
of the on - going flat / inverted yield curve (meaning short - term interest
rates that are virtually equal to or exceed long - term interest
rates, thus
lowering profit margins for financial services companies that
borrow cash
at short - term
rates and lend
at long - term
rates), potentially higher credit losses, fewer available high - quality, high - yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.
So why are all political parties afraid
of borrowing money
at historically
low interest
rates to pay for needed infrastructure spending that could pay for itself through higher productivity and earned income, without any cost to the taxpayer?
Mr. Buffett singled out a driver
of the acquisition boom: Acquirers could
borrow money
at low interest
rates to finance their deals.
Today, they reflect the flow
of international
borrowing where interest
rates are
low and lending
at a markup where credit is tight — and then hedging this arbitrage, and jumping on the bandwagon to speculate on which way currencies will go.
[303][306] In January 2012, the U.S. Treasury
Borrowing Advisory Committee
of the Securities Industry and Financial Markets Association unanimously recommended that government debt be allowed to auction even
lower,
at negative absolute interest
rates.
Thus, if we look
at bonds from a historical perspective, interest
rates are very
low — which is great for those
borrowing money — but not so great for those that wish to see higher
rates of interest, and return, on their money.
Over the past couple
of years, speculators have also used short sales
of gold to obtain
low cost funds to invest in other assets — for example, by shorting gold (
borrowing it and selling it in the spot market), market participants have been able to obtain US dollars
at between 1 and 2 per cent, well below the
rate of return available on US assets.
Whereas in most markets an increase in short - selling puts pressure on the lending market and pushes up the interest
rate at which short - sellers can
borrow the underlying stock, the ready supply
of gold loans from central banks seeking to earn some return on their gold holdings has, until recently, helped to keep lease
rates low, generally in the range
of 1 — 2 per cent (Graph B3).
These involve the investor
borrowing at the short end
of the yield curve, particularly in those countries where
rates have been very
low, such as the United States, Japan and Switzerland, and investing either further out along the yield curve or in countries where interest
rates have been relatively high, such as Australia and the United Kingdom.
Although I don't pretend to understand all the «ins & outs»
of banking, public financing, etc., it seems to me to be self - evident that if Canadian governments
at all levels were able to
borrow,
at low or preferably no interest
rates, to finance infrastructure projects and other issues such as health care and education, rather than indebting Canadians in perpetuity in order to pay big interest payments to the greedy Big Banks, it would ultimately be in the best interests
of most ordinary Canadians.
This is evident in a number
of developments, including: increased demand for higher - risk assets; the increase in «carry trades» — a form
of gearing where funds are
borrowed short - term
at low interest
rates and invested in higher - yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).
When the pace
of inflation eases over a longer period and interest
rates are still
low, this is a good time to
borrow at a
low cost.
Debt consolidation.If you're struggling with credit card debt,
borrowing against your equity can be extremely attractive because
of the
low interest
rates — much
lower than any you'll find on a credit card — using a HELOC to pay off other debts will give you an easy single payment
at low interest
rates.
The federal government would
borrow on behalf
of this Crown Corporation by issuing 30 - year bonds
at historical
low interest
rates (around 2 %).
The Liberals embraced the recommendations
of many economists, including ourselves, that with a sustainable fiscal situation, they could strengthen long - term economic growth by undertaking infrastructure spending financed by
borrowing at historically
low interest
rates.
However, he said, «even
at lower rates, the amounts you
borrow to pay for school can mean that you pay thousands
of dollars extra in interest.»
Christopher Joye When fund managers start talking about how expensive large parts
of the market are getting
at a time when we have record
low borrowing rates, it gives you pause.
Now we are seen as one
of the safe havens — able to
borrow money
at lower interest
rates than
at any time in our history.
Mr Thompson said the size
of government, the level
of borrowing,
low government revenue, the exchange
rate, the army worm invasion, the debt
at the financial sector and disposable income were bad news for the country.
«They also look
at interest
rates, and we are currently
borrowing money
at some
of the
lowest interest
rates in British history.
«Today, Scotland has a currency which takes into account the needs
of Scottish economy as well as the rest
of the United Kingdom when setting interest
rates and it can
borrow at rates that are among the
lowest in Europe.»
Both sides argued over the financial prudence
of ECMC handing the county a cash windfall in exchange for its cooperation in allowing the hospital to
borrow money
at the
lowest possible
rate.
If the amount was significantly less than what I was making on each sale
of a book
at full price ($ 4.99), would an increase in sales and visibility compensate for the
lower rate of return on
borrows?
Another may view pulling cash out
of home equity as a way
borrowing at a
lower interest
rate than he or she could get with a personal loan.
In situations like this you will be able to
borrow money
at a
lower rate than you could get from any
of the financial lending institutions and the person lending you the money could also get a better return than they would get by investing their money in those same institutions or
at the bank.
This option not only allows you to start a new mortgage
at a
lower interest
rate, but let's you add additional funds to the
borrowed amount — up to 80 %
of your home's appraised value.
1) Inflate the size
of my balance sheet by 2.5 x over last year, all through
borrowing at really
low rates.
Given the
low interest
rate environment and the increased demand for yield, many U.S. corporations have taken advantage
of the opportunity to
borrow at lower costs.
Students that elect to
borrow with a variable interest
rate could benefit from a
lower interest
rate at the time
of borrowing.
For instance, a homeowner may find that cash - out refinancing is a way
of borrowing cash
at an interest
rate (i.e. the interest
rate on the new mortgage) that is
lower than he or she could get with a personal loan and without losing the ability to write off interest and points (i.e. fees you pay to your mortgage lender to reduce your interest
rate) on your taxes.
The creation
of mortgage securities helps individuals own homes by reducing the cost
of a mortgage, allowing a potential homeowner to
borrow money
at the
lowest rate available.
You can
borrow at very
low rates of interest as well.
So, people are taking advantage
of their increased equity, in other words the value
of their homes have increased, and then
borrowing it back again
at a very historically
low interest
rate.
Had nearly paid off as they had just sent me a letter to one
of their most valuable customers with checks offering new
borrowing at a
lower rate.
Citadel's Interest - Only Home Equity Line
of Credit lets you
borrow against your home
at a
lower rate with interest - only payments for 10 years, giving you more flexibility when it comes to repayment.
The obvious way to combine strategies is to use leverage: for example, to reduce the market risk
of a momentum strategy as much as possible, to do the same thing with a value strategy, and then to
borrow money
at a
low rate in order to get exposure to both.
A home equity loan or line
of credit allows you to
borrow money
at a
lower interest
rate than many unsecured loans.
Some people use leverage,
borrowing money
at a
low rate, to be able to buy a larger amount
of a
low - risk portfolio, making its beta equal to that
of the index.
Because mortgages are traditionally the least expensive form
of borrowing (because the loan is secured by your house), you might be able to
borrow at a
low interest
rate to repay your higher interest
rate credit card and other debts.
It is also appealing for anyone willing to «stooze» — a concept
of borrowing at a very
low rate and investing
at a higher return — which is outlined in more detail in our article on how to manage 0 % interest credit cards.
As expected, the Bank
of Canada announced that they will continue to keep
borrowing costs
low, maintaing its trendsetting overnight
rate at a 1 percent
low.
A TD Investment Secured Line
of Credit uses your eligible investments as security so you may be able to
borrow at a
lower interest
rate than on an unsecured line
of credit.
You know one can argue that
borrowing money
at lower interest
rates to invest for higher returns is good debt, but the definition
of debt is that something is owed or it's the state
of owing money.
Since the Manulife One account is secured by your residence, you will also be able to
borrow at a much
lower rate than credit cards and personal lines
of credit.
Not sure on the math yet but the Manulife One also lets you lock in up to 75 %
of your
borrowings at rates as
low as 5.65 % for a 1 year term up to 5.85 % for a 5 year term.