Sentences with phrase «chance of default»

These products pay well above the 10 - year Canadian government rate, but they are riskier to own — the higher coupon corresponds to a higher chance of default.

Isn't a home that has greater upfront risk protection and a lower chance of default much more valuable?

The reason their clients receive a higher yield is because they own bonds with a greater chance of default.

In short, it's a loan with a statistically lower chance of default due to its characteristics and criteria.

These products pay well above the 10 - year Canadian government rate, but they are riskier to own — the higher coupon corresponds to a higher chance of default.

With these high - cost, short - term options come more debt, greater chance of default, and fewer opportunities.

To qualify for this offer, you must have a very high credit score and be considered a person with an extremely low chance of default.

Subprime loans are made to borrowers with a poor credit history and a high chance of defaulting on repayment.

As an example, the European junk bond market now implies a -1.2 % chance of default in the segment (yes, negative).

Those in the range of 550 to 599 have a 51 percent chance of defaulting on loans, while those between 600 and 649 default 31 percent of the time.

Based on the cost of insuring Venezuelan sovereign debt, the markets are estimating an 80 percent chance of a default within the next year.

Also, with stricter credit conditions nowadays, lenders are being more choosy in who they give loans too, reserving mortgages for mostly only low - risk borrowers who have less chance of default and foreclosure.

Applying a quality screen to the market can remove those securities with the highest expected chance of defaulting, resulting in a higher quality universe of securities from which to build a portfolio.

Higher yielding fixed income offers those higher yields because the issuers of the bonds have a better chance of defaulting on their debt.

A.M. Best credit rating service gives William Penn an A + rating or «Superior,» meaning the company has little chance of defaulting on its claim paying ability.

Martin Fridson, chief investment officer of New York based Lehmann Livian Fridson Advisors and a well - known blogger on high yield, offers a list of firms whose bond spreads have ballooned to more than 1,000 basis points over US treasury bills, pricing that indicates a one - third chance of default within a year, he says.

Finally, the risk - free rate of return is usually calculated using U.S. government bonds, since they have a negligible chance of default.

If the current EMI being paid is a strain on the finances, avoid chances of a default.

The idea is to have the borrowers with the greatest chance of defaulting pay more instead of forcing everyone to absorb the cost of the rise in foreclosures.

Quite often, subprime borrowers are often turned away from traditional lenders because of their low credit ratings or other factors that suggest that they have a reasonable chance of defaulting on the debt repayment.

Bonds that have a high credit worthiness and a relatively low chance of defaulting on part or all of their debt.

Applying a quality screen to the market can remove those securities with the highest expected chance of defaulting, resulting in a higher quality universe of securities from which to build a portfolio.

For example, sellers who are in financial trouble and facing a good chance of defaulting on their mortgage are not ideal candidates.

People with relatively good credit may work with bad credit mortgage lenders who will grant them better interest rates as there is little chance of defaulting.

With that being said, HYMB targets bonds that are rated below investment grade and thus contains issues that have a much higher chance of default.

That means that people with more student debt were having a lower chance of defaulting on their lease or making later major payments.

Riskier loans command higher interest rates than safer loans because of the greater chance of default on the repayment of the risky loan.

If they used a different plan, their chances of default are still low, yet they are still choosing a plan that eventually displaces their debt onto tax payers.

That is, the higher the interest coverage ratio, the less the chance of default.

Think about it: because the Fed has taken short rates to zero, investors are chasing bonds with 5 % yields that have at least a 50/50 chance of defaulting.

First, remove all the bonds that have a higher chance of defaulting.

Greater business and industry risk (which should be reduced through diversification), since the chance of default is higher.

After all, if you're a risky borrower with a higher chance of defaulting on your credit card debt, it doesn't make sense to give you access to rewards in the first place.

Bond rating services such as Standard & Poor's, Moody's and Fitch, calculate the risk inherent in each bond issue - the chances of a default or failure to pay - and assign a series of letters to each issue signifying its risk factor.

Rising CDS spread levels indicate that investors believe the chance of a default has increased.

By making it easy for FHA borrowers to get better mortgages, the agency reduces the chance of default (good for them) while helping homeowners get better loans (good for you).

Most issuers have what's called a «general obligation» to pay back their loans, but there is a chance of default.

Loans with higher LTVs are riskier because the borrower has put down less of their own money towards the purchase and theoretically has a higher chance of defaulting.

Despite the risks involved in lending without the protection of collateral, lenders are willing to grant loans because they calculate the chances of default are less than a credit history might suggest.

What is more, because loan repayments are organized directly with your bank, and withdrawn automatically on certain days, the chances of defaulting are minimized.

Returns are fixed but returns from bank FDs are guaranteed while in case of NCDs, there is a chance of default if the business environment of the issuing company worsens.

Corporate debts are by the highest coupon paying bonds, however, the chance of default is also greater, if you wish to invest in these, it is preferable to look at the ETF / MF's debt portfolio financial ratings (Moodies etc.).

Bond rating services such as Standard & Poor's, Moody's and Fitch, calculate the risk inherent in each bond issue - the chances of a default or failure to pay - and assign a series of letters to each issue signifying its risk factor.

If you do not pay adequate attention to this, your chances of defaulting will increase and you may end up a few steps from bankruptcy.

While this bill won't change the amount of money students need to borrow, it will make payments more affordable and hopefully decrease the chance of default.

The US bond will probably last until maturity while the Syrian bond has a high chance of defaulting.

Conversely, non-investment grade debt offers higher yields than safer bonds, but it also comes with a significantly higher chance of default.

Since the point of deferring a student loan is to delay repayment until you're in a better financial position, a deferment can actually reduce the chance of default.