Sentences with phrase «compensated for risk»

Make sure you are compensated for this risk appropriately or don't do the loan.

We will take great care in making any investments outside gaming, recognizing that probably would increase the risk profile and our investors will need to be compensated for that risk.

If you're not being appropriately compensated for that risk, you may want to address the issues by changing your method of operation.

1) Investors expect to be compensated for the risk they take in making an investment that is more risky than a high interest savings account (this would bring the price that they are willing to pay DOWN), and 2) the price goes up if the company's earnings are expected to increase.

A value investor is always asking himself / herself, «Am I being adequately compensated for the risk I am taking?»

Of course, in the real world, compensation / employment practices are such that traders / bankers will always be well compensated no matter the out - turn... while you as an investor will never be adequately compensated for this risk — so again, no bank investments, EVER!

If you're going to bet on real estate, you might as well be compensated for risk.

In other words, investors must be properly compensated for risk.

We all creep out of the yield curve, but we forget that we are not getting compensated for the risk of default.

As a debt investor you must be prepared to ask yourself an important question when considering an investment in a corporate bond: Am I being adequately compensated for risk versus government bonds, equities and cash?

If the bonds are cheap because of weak fundamentals, make sure you are being compensated for the risk.

These inefficient portfolios aren't compensated for the risk that they take, and they often underperform.

But this brings us to one key problem in the world of investing — if we can measure return, and we can measure risk by looking at volatility, then how do we know if we are being compensated for the risk we are taking on?

In fact, when looking at the earnings yield relative to real bond yields — the equity risk premium (ERP)-- investors are still being well compensated for risk in many corners, we believe.

We only invest when we are compensated for the risk assumed.

Well over the long term lower price stocks will outperform higher price stocks because they're more volatile they're more risky and you are compensated for that risk.

From fair prices we expect fair returns, meaning that investors should be compensated for their risk exposure over an appropriate period of time.

They're not demanding the higher returns to compensate them for those risks.

The elder Buffett has shunned bonds in recent years, saying that near record - low yields aren't enough to compensate for the risk of inflation.

The lender needs this documentation to assess your ability to repay the loan so that they can decide whether to issue you a loan, and if so, what interest rate to charge you to compensate for the risk that they take.

Multipliers are frequently used in offsetting to compensate for the risk of failure of the offset measures and the time lag between when negative impacts of the development project are felt and the positive impacts of offsetting come to fruition, often a period of many years.

To compensate for these risks, lenders may charge higher interest rate for jumbo loans.

That's an impressive return on the buyers» roughly $ 6 billion of equity — much more than sufficient to compensate for the risk of a continued slide in the PC business.

However, the vendor may initially demand higher transaction or other fees to compensate for risk.

That means that when your debts come due and you need new loans to pay off the old ones, investors start demanding that you compensate them for their risks in the form of higher interest rates.

As a result, callable bonds often have a higher annual return to compensate for the risk that the bonds might be called early.

Private lenders are not eligible for government - provided insurance on mortgages and therefore require an initial fee to compensate for risk associated with private deals.

Payroll lenders charge high enough interest rates to compensate them for the risk that borrowers will default.

In order to begin thinking like a professional trader you must think about trading as a business, and just like any business you must understand there is risk involved, real risk, you must figure out a way to compensate for this risk that doesn't involve running your costs up so high you can not operate the business anymore.

So they assume some risk that you'll default, and part of what they charge is to compensate for the risk they take.

So, if your score is in this range, you will pay higher interest rates to lenders to compensate them for the risk they take on when lending to those with lower credit scores.

Losing covered call strategies include chasing high yields by buying stocks you don't want to own if not called, as well as buying stocks that don't pay enough in call premium to compensate you for the risk of owning them.

Credit scores allow lenders to assess default risk and offer credit at a rate of interest that compensates them for the risk.

Usually, we would expect longer term bonds to have a higher yield to compensate for the risks of higher rates and inflation in the future.

If the bank decides to loan the money instead, the interest rate it charges its customers must exceed what it can earn elsewhere, and compensate for the risk that the money may not be repaid.

MBA programs can generate enormous debt loads extremely quickly, without providing enough value to compensate for the risks.

As we mentioned above, in all of these activities, it's a rare investor who makes enough profit to compensate for the risk involved.

In all of these activities, it's a rare investor who makes enough profit to compensate for the risk involved.

Some lenders may give you financing, but they'll adjust the interest rate to compensate for the risk your score poses.

At base, an absolute value discipline holds that you should not put money into risky assets unless you're being more than compensated for those risks.

To compensate for the risk of defaults, junk bonds have, on average, yielded some 6 percentage points more than comparable Treasury bonds.

You'll pay higher interest rates for building rather than purchasing an investment property — rates currently range from 5 % to 12 % — because constructing a new building is a riskier endeavor than purchasing a finished one, so banks charge higher interest rates to compensate for this risk.

The lender needs this documentation to assess your ability to repay the loan so that they can decide whether to issue you a loan, and if so, what interest rate to charge you to compensate for the risk that they take.

On the flipside, the rates will be slightly higher because they are trying to compensate for the risk of lending you the money.

Global corporate bond valuations are elevated and insufficient to compensate for risk, but there will continue to be selective opportunities to take high conviction positions.

We ensure that credit risk is priced appropriately and that our client portfolios are compensated for the risks they assume.

«Active, flexible management of fixed income portfolios with the ability to adjust maturities and sector exposures to avoid taking risk, unless well - compensated for those risks in the form of more attractive yields, is most important for investors right now.»

But alternatives with some risk attached are superior only if the return more than fully compensates for the risk.

Therefore, if you adhere to investing under the principles of intrinsic value, you will be making sound and intelligent decisions that provide a margin of safety and compensate you for the risk you take.

However, assuming that the hospitality industry recovers, the 8 % current yield may compensate for risk.