This was exasperated recently when I was discussing the case of how most investors misunderstand how it can actually be good over the long - run to change a company's capitalization structure to replace equity with debt
by borrowing funds on a long - term, low - cost, fixed - rate basis to repurchase stock, lowering the total count of outstanding shares.
It raises capital
by borrowing funds from people who want the convenience of a savings or checking account.
Instead, try to convert your payday loans to a conventional loan
by borrowing the funds from a conventional lender or the above - mentioned sources of funds.
Policyholders may access their cash value by taking a withdrawal, or
by borrowing funds.
In October, FINRA issued an investor warning about non-traded REITs, saying that these investments can be heavily subsidized
by borrowed funds, early redemption is often limited, and fees can be high.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment
by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders
by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to
borrow additional
funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending
by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
When the Federal Reserve boosts its target
funds rate, banks are quick to follow suit
by increasing the cost of
borrowing on everything from credit cards to home equity lines of credit.
Its net interest income, the «spread» between what it charges on loans and pays for the deposits that
fund those
borrowings, jumped from
by $ 900 million or 9 % to $ 11.2 billion, compared with Q2 of last year.
The CFO is also focused on the long - term finances of the company in terms of forecasting as well as how the business might
fund, say, an acquisition
by borrowing or other means.
Earlier in the month, the Federal Reserve raised the
funds rate
by 25 basis points, its fifth increase since December 2015, which impacts some of the terms
by which you
borrow money and access credit.
Just last month, the American Sears had to
borrow $ 400 million from a hedge
fund operated
by Lampert in order to prepare for the holiday season.
Given the experience with private - sector involvement (PSI) in Greece and the intentions expressed
by euro area officials around the development of the ESM, Moody's believes that the debts of euro area sovereigns that are fully dependent upon official sources to
fund their
borrowing requirements represent speculative - grade risk.
The MPC launched the Term
Funding Scheme to make sure that the lower levels of interest rates now set
by the Bank of England are reflected in the costs commercial banks charge households and companies to
borrow funds.
One way to improve that balance of power is
by learning to recognize when loan officers may believe it's the right time for your company to
borrow funds.
It didn't work, as Chinese equity markets continued their descent on Monday, fueling worry because it is unclear how much of the country's bull market was
funded by individuals
borrowing to buy stocks.
October 22: President Obama unveils a program to help small businesses
borrow money,
by allowing small banks to
borrow funds at low rates from the Troubled Asset Relief Program (TARP).
At July 28, 2012,
borrowings under the Asset - Based Revolving Credit Facility bore interest at a rate per annum equal to, at NMG's option, either (a) a base rate determined
by reference to the highest of (i) a defined prime rate, (ii) the federal
funds effective rate plus 1/2 of 1.00 % or (iii) a one - month LIBOR rate plus 1.00 % or (b) a LIBOR rate, subject to certain adjustments, in each case plus an applicable margin.
At April 27, 2013,
borrowings under the Asset - Based Revolving Credit Facility bore interest at a rate per annum equal to, at NMG's option, either (a) a base rate determined
by reference to the highest of (i) a defined prime rate, (ii) the federal
funds effective rate plus 1/2 of 1.00 % or (iii) a one - month LIBOR rate plus 1.00 % or (b) a LIBOR rate, subject to certain adjustments, in each case plus an applicable margin.
As proven in 2008, the democratic nature of P2P lending helps to fill gaps during liquidity crunches
by providing a
funding option to small businesses and consumers who need to
borrow.
OnDeck also extended the maturity date of its asset - backed debt facility that finances its line of credit offering to May 2019, increased the facility's
borrowing capacity to $ 100 million, and decreased the
funding costs
by 200 basis points.
Some analysts said the sharp swings in offshore exchange rates and
borrowing costs appeared to be engineered
by the Chinese leadership, as a way to ease depreciation pressure on the renminbi and to discourage speculation — namely short - sellers, investors who bet on declines in the currency, often
by using
borrowed funds.
Monetary policy doesn't work
by restricting or «rationing» the reserve
funds available to the banks and so limiting the supply of credit via balance sheet constraints: it works
by way of changing the price of
borrowing, shifting borrowers along their
borrowing demand curve.
If the state
funds these unproductive workers
by borrowing at repressed rates from households, or
by otherwise raising direct or hidden household taxes, this way of managing unemployment will indeed serve simply to prevent or even reverse the adjustment process.
In order to stimulate the creation of a series of Canadian venture investment
funds, at little cost to government, CATA proposes that the federal government
borrow a page from the Israeli play book, with the structure proposed
by VC expert Stephen Hurwitz6.
During this cycle of monetary tightening, the fed
funds rate — the rate controlled
by the Fed to influence
borrowing costs — has been raised four times.
The Fed has a dual mandate to maximize employment and stabilize inflation, which it tries to achieve primarily
by pushing up or down the federal
funds rate, the benchmark short - term financing cost for banks that influences a wide range of
borrowing rates for households and businesses.
If we do not have sufficient
funds to pay tax or other liabilities or to
fund our operations, we may have to
borrow funds, which could materially adversely affect our liquidity and financial condition and subject us to various restrictions imposed
by any such lenders.
Just like any business, banks can
fund their operations either
by issuing shares (selling equity, or ownership) or
by borrowing money.
The firms
funded the deal in large part
by using Toys «R» Us to
borrow the money to
fund its own acquisition — hence «leveraged buyout.»
Each percentage point of additional
borrowing costs with current abnormally low interest rates increases costs of
funding by $ 680 billion.
Yet instead of enhancing the Fed's conventional powers of monetary control, the ballooning of the Fed's balance sheet has sapped those powers
by making it unnecessary for banks to routinely
borrow from one another in the federal
funds market to meet their legal reserve requirements.
Specifically,
by altering the supply of bank reserves, the Fed could influence the federal
funds rate — the rate banks paid other banks to
borrow reserves overnight — and so keep that rate on target.
The company previously
funded such activities
by borrowing in the US market.
Its target was the federal
funds rate, the interest rate paid
by banks to
borrow reserves from other banks.
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.
Conversely, if the Reserve Bank supplies less than banks wish to hold, they will respond
by trying to
borrow more in the cash market to build up their holdings of exchange settlement
funds; in the process, they will bid up the cash rate.
In plain English, the optimal portfolio recommended
by the efficient frontier model recommended
borrowing shares in two
funds and buying them back if the price decline, a very risky investment strategy (short selling).
Selling gold short has therefore been an alternative to the «yen - carry» trade which saw market participants
fund investments in various markets
by borrowing yen (at almost zero cost due to the low interest rates in Japan) and selling it for other currencies, mostly US dollars.
Sound financial policy requires that the Government fully
fund any budget deficit
by issues of securities to the private sector at market interest rates, and not
borrow from the central bank.
When the Federal Reserve raises its benchmark Federal
Funds Rate — as it did on June 14
by a quarter - point — attention tends to focus on interest - rate increases on debt and future
borrowing.
Greater saving has been driven
by increases in inequality and in the share of income going to the wealthy, increases in uncertainty about the length of retirement and the availability of benefits, reductions in the ability to
borrow (especially against housing), and a greater accumulation of assets
by foreign central banks and sovereign wealth
funds.
The political message is that they — backed
by wealthy bondholders and depositors — should have monetary power to decide whether or not to
fund governments, whose spending should be financed
by borrowing, not
by fiat money creation.
Moreover, during its recent analyst meeting, management disclosed that it would have to
borrow money to
fund a $ 6 billion contribution to its pension plans next year, as well as cut its 2018 capex
by 26 %.
* Besides
funding loans with retail deposits banks can and do
fund them
by borrowing on wholesale markets.
With the FED being the dominant borrower (willing to
borrow at higher rates), banks, GSEs and money market
funds have less desire to provide short - term
funding for other entities, thus forcing them to
borrow at the rate set
by the FED.
Used carefully, HELOCs can improve the financial position of homeowners
by helping them upgrade their properties,
fund investments, lower their
borrowing costs, make monthly payments more manageable or set up a financial safety net.
The central bank's foreign reserves have dropped
by $ 36bn, or 5 per cent, over the past two months, as newly crowned King Salman bin Abdulaziz Al Saud dips into Riyadh's rainy - day
fund and increases domestic
borrowing to
fund public - sector salaries and large development projects.
At least 75.4 % of ESOP companies are or were leveraged, meaning they used
borrowed funds to acquire the employer securities held
by the ESOP trustee.
However, a shift
by financial intermediaries towards
borrowing in euros and UK pounds, as they seek to diversify their
funding sources, saw those currencies» share of offshore foreign currency issuance increase sharply to almost 30 per cent.
Benchmark interest rates, such as the LIBOR and the Fed
funds rate, affect the demand for money
by raising or lowering the cost to
borrow — in essence, money's price.