no longer seduced
by high debt & poor / negative cash - flow stocks.
Sometimes, though, a high ROE is created
by high debt.
• High return on equity, but offset
by high debt load.
In fact, lenders, partners, suppliers and investors may all be turned off
by a high debt - to - equity ratio.
The cost of borrowing in China has been cut aggressively since the autumn of 2014 in response to the slowdown in the economy and the distress caused to property owners, local government and corporations
by high debt - servicing costs.
Brookstone, the specialty retailer famous for massage chairs and travel electronics, filed for bankruptcy protection in early 2014, hurt
by high debt.
Corporate investment - banking fees were down 4 % from the year - ago quarter because of lower advisory and equity issuance fees but partly offset
by higher debt - issuance fees, according to the firm.
Not exact matches
And while most emerging market
debt continues to be issued in local currencies, the IIF said that foreign currency denominated
debt issued in these nations swelled
by $ 800 billion last year to a record
high of $ 8.3 trillion.
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.
According to the Institute of International Finance (IIF), global
debt levels rose
by a further $ 21 trillion last year (US dollars), leaving total outstanding
debt at $ US237 trillion, the
highest level on record.
His ability to pay off his
debt wasn't made possible
by a
high - profile job or a windfall.
But the same PBO report projects the
debt service ratio will rise to an all - time
high of 16.3 per cent
by the end of 2021.
Of the nine winners who did report challenges building their startups because of student - loan
debt, only three left school owing more than $ 35,000, the average amount for class of 2015 graduates (the
highest in U.S. history), according to a report
by financial aid resource Edvisors.com.
A related question I sometimes hear — which bears also on the relationship between monetary and fiscal policy, is this:
By buying securities, are you «monetizing the
debt» — printing money for the government to use — and will that inevitably lead to
higher inflation?
By borrowing: the country's household
debt to personal disposable income ratio has climbed to a record
high of 152.98 %, according to Statistics Canada.
The problem is that many boomers are burdened
by student loan
debt accrued from funding their children's
higher education.
Total credit card
debt has reached its
highest point ever, surpassing $ 1 trillion in 2017, according to a separate report
by the Federal Reserve.
The Journal added that,
by cooling its stance on
debt, Beijing is hinting that it would rather fuel growth with
higher debt than pursue austerity measures.
Women are also taking longer to pay off student
debt, according to a report completed this year
by the American Association of University Women, despite being more likely to enroll and earning
higher grades than most of their male peers.
The West African country is in its final year of the $ 918 million credit deal signed in April 2015 to fix its economy, dogged
by high deficits, inflation and a distressing public
debt.
By running the risk of
higher deficits, the Trump plan could damage the credibility of Republican lawmakers who spent years railing against the rising national
debt under former President Barack Obama.
PeerStreet's view is that
by performing its own due diligence on borrowers using a software - based underwriting engine, the company can match
high - quality
debt with a growing crop of yield - hungry investors.
Conservative finance critic Pierre Poilievre called the PBO's findings «damaging» for the government, citing the impact of larger deficits,
higher debt payments and a carbon tax that he says will erase at least $ 10 billion per year from the national economy
by 2022.
According to the Organization for Economic Co-operation and Development, the combined government
debt held
by the world's advanced economies is at its
highest point since the Second World War.
«Much of the welfare state concept was always an illusion, one financed
by lavish amounts of
debt for which present and future taxpayers will pay in the form of
higher taxes and reduced services during their lifetimes,» writes University of Calgary lecturer Mark Milke in a recent article.
A downgrade
by a credit rating agency usually means investors will demand a
higher interest rate when a company goes to raise cash
by issuing bonds or other
debt.
In response to a journalist's question, the governor says he agrees with the view consumers are facing
high debt loads today because they filled in the
debt - accumulation void left when governments turned to austerity
by shutting down stimulus measures to address fallout from the 2008 financial crisis.
An alternative is to pay off
high - interest credit card balances using another type of
debt consolidation loan or
by refinancing your mortgage with a cash - out option.
(That's compounded
by higher student
debt loads among millennials.)
Last, companies with
high cash balances can also return money to you directly
by paying off
debt, and thus increasing profits; buying back outstanding shares; and even paying a dividend.
We're investors at heart, and the best way to get started investing more is
by cutting out
high - interest
debt.
The Federal govt could actually reduce this substantially
by reducing the maturity on their
debt by issuing short - term
debt instead of
higher interest bearing long - term
debt.
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.
If expectations are forward - looking, and if economic agents think some part of the
debt will have to be paid for
by printing money,
higher interest rates might be the result, or
higher wages.
The IMF's October, 2012 World Economic Outlook (WEO), «Coping with
High Debt and Sluggish Growth» is a must read for anyone who wants a realistic and independent assessment of global economic prospects, the challenges confronting policymakers, and the risks to global economic growth that are increasing
by the month.
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.
The $ 1.2 trillion market for U.S. junk bonds yields about 6.6 percent, double what's offered
by higher - rated company
debt, according to Bank of America Merrill Lynch index data.
The IATA expects
higher profits to be driven
by improved revenue, an increase in passenger and cargo demand and reduced interest payments as carriers pay down
debt.
By definition any country with both
high investment and a current account surplus must have a
high savings rate, but I don't understand why having
high savings explains China's
high debt levels.
An important issue shaping the future is how these cross-cutting themes are resolved: businesses feel better than they have for some time, but consumers feel weighed down
by weak income growth and
high debt levels.
«The fact the 10 - year is getting a magnetic pull towards 3 percent and going
higher is being driven
by better growth and the
higher inflation that comes with it, and all the
debt that's needed to finance the growth,» he said.
As a company continues to increase its
debt over the amount stated
by the optimal capital structure, the cost to finance the
debt becomes
higher as the
debt is now riskier to the lender.»
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).
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?
Spain's
high unemployment, excessive
debt, and stagnant growth stem indirectly from policies implemented
by Germany that forced down the GDP share of German wages while also reducing domestic investment.
The fund invests primarily in investment grade
debt securities, but may invest up to 10 % of its total assets in
high yield securities rated B or
higher by Moody's.
The government there said
debt levels will be the
highest in 22 years, which pushed stocks in Germany and France down
by more than a percent; less in the U.K. Conway Gittens, Reuters
Conventional wisdom holds that the millennial generation, influenced
by the 9/11 attacks, burdened with student
debt and reared in a world of
high - speed mobile devices, is a unique group of young people.
Outstanding revolving balances — largely credit card
debt — again hit a record
high in January, while student and auto loan
debt grew
by 5.6 %.
The improvement in the current fiscal results is entirely due to
higher revenues, dampened
by somewhat
higher expenses, especially public
debt charges.