In other words, these bonds react more dramatically to major
changes in the credit cycle.
Not exact matches
Factors that could cause or contribute to actual results differing from our forward - looking statements include risks relating to: failure of DBRS to rate the Notes at the anticipated ratings levels, which is a closing condition, or at all;
changes in the financial markets, including
changes in credit markets, interest rates, securitization markets generally and our proposed securitization
in particular; the willingness of investors to buy the Notes; adverse developments regarding OnDeck, its business or the online or broader marketplace lending industry generally, any of which could impact what
credit ratings, if any, are issued with respect to the Notes; the extended settlement
cycle for the scheduled closing on April 17, 2018, which may exacerbate the foregoing risks; and other risks, including those described
in our Annual Report on Form 10 - K for the year ended December 31, 2017 and
in other documents that we file with the Securities and Exchange Commission from time to time which are or will be available on the Commission's website at www.sec.gov.
This might not be a groundbreaking
change — maybe you're moving from $ 40,000 to $ 60,000
in financing, for example, or from a loan term of 18 to 24 months — but you're still expanding your possibilities for growth, building
credit, and keeping the financing
cycle going.
The
changes occurring
in today's high - yield markets, however, indicate that history may not be a perfect guide for investors over the next
credit cycle.
Below, we review some of the
changes and risks investors should consider
in future
credit cycles.
Compositional
changes in markets and
cycles can cloud historical comparisons, and the impact of globalization on the next
credit cycle could be quite profound.
Generally speaking the longer the term of a bond the greater the sensitivity that bond will have to the movement
in interest rates,
changes in the
credit quality of a company or company risks associated with the business
cycle of a specific company, sector or economy.
This includes 3 key
cycles — the corporate profit
cycle, the
credit cycle, and the inventory
cycle — as well as
changes in the employment situation and monetary policy.