Sentences with phrase «by debt leveraging»

This will prevent another real estate bubble from being inflated by debt leveraging.
-- Goethe What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?
What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?

Not exact matches

Though it initially slowed our growth down, by having low debt we never put the company at financial risk and built a strong foundation we can now leverage
The retailer was saddled in debt, some $ 4.9 billion, left from a 2005 leveraged buyout for about $ 6.6 billion by private equity giants Kohlberg Kravis Roberts and Bain Capital, as well as real estate trust Vornado.
But by last September, just months before the crucial holiday season, relentless competition from Amazon.com Inc. and Walmart Inc. — combined with more than $ 5 billion in debt from a 2005 leveraged buyout — had finally overwhelmed the chain.
The stable outlook reflects our view that ACT's strong market position in North America and Scandinavia and its continued operating efficiency will insulate it from margin pressure in this highly competitive industry, contributing incremental earnings and generating strong free cash flow for debt reduction that should result in leverage declining quickly to about 3x by the end of 2013.
Owned by private equity group Leonard Green & Partners after a leveraged buyout for $ 1.3 billion in 2006, the company is entering bankruptcy in a bid to held shed much of its debt and clean up its balance sheet.
As a result, it is now clear that the U.S. is in the latter stages of the multi-year credit cycle, a period when rising corporate leverage negatively affects returns to corporate debt as investors demand higher risk premiums to compensate for the greater volatility created by increased leverage.
The result in the early 1980s when debt - leveraged buyouts really gained momentum was that financial investors were able to obtain twice as high a return (at a 50 % corporate income tax rate) by debt financing as they could get by equity financing.
Indeed, as you can see below, median corporate leverage among the largest U.S. companies is nearing a record high as measured by debt - to EBITDA (earnings before interest, taxes, depreciation and amortization).
The net debt to earnings before interest, depreciation, and amortization (EBITDA) ratio is a measurement of leverage, calculated as a company's interest - bearing liabilities minus cash or cash equivalents, divided by its EBITDA.
Will this create even larger problems to come, by making the costs of living even higher as labor and industry become even more highly debt leveraged?
At Bear, Stearns & Co., Mr. Abbott served as a Vice President in Financial Analytics & Structured Transactions (F.A.S.T) where he structured and reverse engineered complex CDO transactions, secured by a wide range of debt products, including high yield bonds, senior secured leverage loans, trust preferred bank loans, RMBS as well as other esoteric receivables.
By the time this point has been reached, the financial managers have paid themselves outsized salaries and bonuses, and cashed in their stock options — all subsidized by the government's favorable tax treatment of debt leveraginBy the time this point has been reached, the financial managers have paid themselves outsized salaries and bonuses, and cashed in their stock options — all subsidized by the government's favorable tax treatment of debt leveraginby the government's favorable tax treatment of debt leveraging.
By leveraging some advantages that our college provides in terms of housing and healthcare as well as making some sacrifices (to live in the student housing which not have great location and accommodations), we are able to stay debt free and build our net worth.
Debt Equity Ratio - How much a company leveraged, or in debt, by comparing what owed to what is owned is debt equity raDebt Equity Ratio - How much a company leveraged, or in debt, by comparing what owed to what is owned is debt equity radebt, by comparing what owed to what is owned is debt equity radebt equity ratio.
Second, even if the bank did not own SIV debt, the use of the back - stop facility by the SIV meant that the leverage ratio of the sponsoring bank was suddenly increasing - even if the bank did not consolidate the SIV on its balance sheet at the time.
Based on recent corporate leverage, this decline in the cost of debt would increase the typical company's return on equity by more than four percentage points.
For instance, a big special dividend financed by debt would still leave shareholders with a period of high leverage and potential earnings volatility before they have as much in their pockets as the buyout price.
In the final analysis it is debt leverage by itself that is supposed to fuel capital gains.
«Liquidity» is defined by economists as money available in all forms to be given out as debt, ranging from credit card debt to mortgage debt to large quantities of institutional debt typically used in complex financial transactions such as highly leveraged corporate acquisitions.
The trick is to persuade employees to hand retirement funding over to financial managers whose idea was to make money off the economy by extracting interest and dividends off workers, homeowners and companies being bought on debt leverage.
Having rapidly pulled ahead over the past three decades, China must remain free of rentier ideology that imagines wealth to be created by debt - leveraged inflation of real - estate and financial asset prices.
By using a combination of assets, debt, equity, and interest payments, leverage ratios are used to understand a company's ability to meet it long - term financial obligations.
Business Credit: Provides senior debt availability through asset leverage by finding value in accounts receivable, inventory, machinery and equipment, trademarks and patents and intellectual property.
According to S&P, «global non-financial corporate debt grew by 15 percentage points to 96 % of GDP in the past six years, with some 37 % of companies deemed to be «highly leveraged», up from 32 % in 2007.»
Last but not least is STORE's fortress - like balance sheet, exemplified by its very low leverage ratio (Debt / EBITDA) and one of the highest interest coverage ratios in the industry.
Jakarta's 38.9 % increase was driven by a substantial recovery in domestic demand in the wake of Indonesian sovereign debt's return to investment - grade status, which energized leveraged investment initiatives and drove up demand for prime office space across the capital.
Underlying our capital allocation strategy is our goal to maintain our investment grade rating by managing to a leverage ratio of approximately three times adjusted debt to EBITDA.
Through this mechanism, the portion of the debt owed to the Banks amounting to about GHC 800 million was restructured by leveraging some proceeds that had accrued from the levy.
Despite increase in our debt profile, it is still believed that Nigeria can borrow from the International financial institutions and use it to reflate the economy by quickly taking the advantage of the credibility of President Muhamadu Buhari which is a good leverage because some international financial institutions are ready to lend us money for infrastructural development.
As indicated in the Mid-Year Fiscal Policy Review, Mr Ofori - Atta said government planned to restructure the debt of the energy sector SOEs by leveraging the Energy Debt Recovery Levy component of the Edebt of the energy sector SOEs by leveraging the Energy Debt Recovery Levy component of the EDebt Recovery Levy component of the ESLA.
What if they don't have much to do with movies at all, but are more like leveraged derivative instruments (I don't actually know what those are) or synthetic collateralized debt obligation (CDO) transactions, devised by accountants to provide maximum returns with minimum effort — that promise investors profits for next - to - nothing?
By leveraging an exogenous shock to district borrowing capacities, this paper seeks to estimate the effects of how such changes affect district debt issuance, school resource provision and allocation, and student achievement.
Prior peak earnings were, indeed, an artifact of unrealistically high profit margins and return on equity, driven by large amounts of debt - financed leverage.
Look at the long term solvency of a firm, which can be judged by using leverage or capital structure ratios such as Debt Equity Ratio and Debt Assets Ratio.
Asset - backed debt — loans secured by a potentially appreciating asset, such as real property, an RRSP, or a stock portfolio — can be a great way to use leverage to increase a person's net worth.
Leveraged Buy - Out (LBO): Financial transaction in which a corporation's management repurchases all public shares, usually by incurring substantial debt, and the company goes private.
Unlike high yield debt, senior loans as measured by the S&P / LSTA U.S. Leveraged Loan 100 Index sat the sidelines for the month of February.
These are loans that are typically taken on by firms with higher existing levels of debt (hence the use of «leveraged» in the name).
Last but not least is STORE's fortress - like balance sheet, exemplified by its very low leverage ratio (Debt / EBITDA) and one of the highest interest coverage ratios in the industry.
But despite the allure of such leveraged investing strategies, there are at least four excellent reasons to be debt - free by your late 50s:
Leverage and interest coverage are both very strong for the group, in fact at 1.0 x Net Debt / NTM EBITDA the group is actually under - levered and would obtain a more optimal capital structure by adding debt at current rates, perhaps choosing to repurchase shares with the dDebt / NTM EBITDA the group is actually under - levered and would obtain a more optimal capital structure by adding debt at current rates, perhaps choosing to repurchase shares with the ddebt at current rates, perhaps choosing to repurchase shares with the debtdebt.
If you can't keep up with a portfolio down by 20 % and an outstanding debt of 100K, you are not made to leverage.
So I see leveraged mortgage debt that is being paid by tenants as an amazing tool to build wealth and passive income.
In this way they are vastly superior to the highly leveraged pigs favored by book - to - market, which tends to serve up heavily leveraged slivers of somewhat discounted equity, and leaves you to figure out whether it can bear the debt load.
Debt - to - equity ratio (D / E ratio)-- A measurement of a company's financial leverage calculated by dividing a company's total liabilities by its stockholders» equity.
Long - Term Debt / Capital is a ratio showing the financial leverage of a firm, calculated by dividing long - term debt by the amount of capital availaDebt / Capital is a ratio showing the financial leverage of a firm, calculated by dividing long - term debt by the amount of capital availadebt by the amount of capital available.
Debt / Total capital, which is a measure of financial leverage, is calculated by dividing long - term debt by total capitalization (the sum of equity plus preferred equity and long - term deDebt / Total capital, which is a measure of financial leverage, is calculated by dividing long - term debt by total capitalization (the sum of equity plus preferred equity and long - term dedebt by total capitalization (the sum of equity plus preferred equity and long - term debtdebt).
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