In theory, at least, equity investors sought capital gains and
debt investors sought income and safety.
With this understanding, Mezzanine
debt investors seek returns between senior debt lenders and preferred equity investors but this will largely depend on how the deal is structured.
Not exact matches
Aspermont has announced plans to raise up to $ 10 million by offering shares to
investors and converting
debt, as it
seeks to shore up its balance sheet.
As
investors seek to sell when prices are falling,
debt managers become trapped.
For
investors bargain hunting in the beleaguered sector, industry analysts recommend a relatively simple formula:
Seek out companies that have low
debt, that are growing their omnichannel presence (the term that is used to describe retailers» ability to serve customers either in - person or online), and that didn't expand too fast during the mall boom of the 1990s and 2000s.
«As the U.S. economy slowed and Europe's
debt crisis worsened,
investors sought the safety of Treasuries and sold the bonds PIMCO had bet on, leaving the fund trailing 89 % of competitors in August and 67 % this year through Sept. 8.»
In fact,
investors seeking safety bought even more of the downgraded U.S.
debt, pushing prices on 10 - year U.S. Treasuries to within a fraction of face value and yields to an all - time low of 2.13 %.
As long as
investors aren't too concerned about the risk of capital losses - that is, as long as
investors are in a risk -
seeking mood (Iron Law of Speculation), a mountain of zero - interest hot potatoes will also embolden
investors to chase yield further out on the risk spectrum, for example, in junk
debt, stocks and mortgage securities.
With interest rates on low - risk investments falling to low levels in many countries,
investors have
sought to maintain yields by moving into higher - risk assets such as corporate
debt and emerging market
debt.
I think over the past 10 years, due to the zero - interest - rate policies by the global central banks, we have had a massive amount of
debt issuance that's occurred as
investors had been encouraged to go out the curve or down the credit curve in order to
seek income,
seek yield.
When
investor preferences are risk -
seeking, overly loose monetary policy can have a disastrous effect by promoting reckless speculation and enhancing the ability of low - quality borrowers to issue
debt to yield - starved
investors.
Because risk -
seeking investors tend to be indiscriminate about it, we find that the best measure of risk -
seeking is the uniformity of market internals across a broad range of individual stocks, industries, sectors, and security types, including
debt securities of varying creditworthiness.
Central bank intervention in global bond markets has «crowded out» many traditional fixed income
investors, driving them to
seek yield and income from non-traditional and riskier asset classes such as high yield, emerging markets
debt, leveraged loans and private credit.
Not surprisingly, data released this month from the the Financial Industry Regulatory Authority's
Investor Education Foundation, which
seeks to promote financial literacy, reveal high school students who are required to take personal finance courses have better average credit scores and lower
debt delinquency rates as young adults.
This expansion in
debt will force all rates higher as
investors seek to be compensated for the increased risk of owning government
debt.
World stock markets ran into resistance Tuesday as
investors sought safety ahead of critical events this week that will test Europe's willingness to unite to deal with a major
debt crisis.
Denmark's krone is being snapped up by
investors looking for low -
debt regions as they
seek to escape the fiscal crisis threatening to destabilize the euro bloc.
The past several years have featured little more than a gigantic asset swap, the short description being that massive volumes of government
debt have been swapped by central banks for massive volumes of idle bank reserves, while massive volumes of low - yielding, covenant - lite
debt have been issued into the hands of yield -
seeking investors, in order to retire massive volumes of corporate equities at elevated valuations through buybacks.
Asian stock markets retreated Tuesday as
investors sought safety ahead of critical events this week that will test Europe's willingness to unite in order to deal with a major
debt crisis.
It almost bankrupted the independent Bronston, who had to
seek funds from outside
investors, finally striking a deal with Paramount to pay off his
debts and finish the film.
High - yield
debt in both the US and international bond ETFs also got a boost after yield -
seeking investors moved longer on the yield curve and into riskier
debt securities to achieve better returns on their investment capital.
Overall, we believe the fund is good bet for
investors seeking long - term gain from equity and
debt market.
European investment grade
debt could also benefit from
investors seeking more yield.
Investment - grade
debt is consider to have low default risk and is generally more
sought - after by
investors.
Investors seek more risk in equities as bond yields get low... And higher equity valuations make bond investors believe it's just as safe as it was before when both debt and equity valuations were lower (and objectively les
Investors seek more risk in equities as bond yields get low... And higher equity valuations make bond
investors believe it's just as safe as it was before when both debt and equity valuations were lower (and objectively les
investors believe it's just as safe as it was before when both
debt and equity valuations were lower (and objectively less risky).
The iPath Alternative ETNs (the «ETNs») are
debt securities that can be bought and sold on an exchange and
seek to provide
investors with a return linked to the performance of an underlying index, less fees and applicable costs.
Bond
investors are demanding higher yields from the
debt of countries with less attractive leverage profiles and
seeking out the safer
debt of countries like Germany, widening spreads.
When BP engaged with
investors after the Gulf of Mexico oil spill disaster, it made clear that its efforts were dedicated to costs — lowering the costs of litigation, lowering the costs of the judgments against it, and lowering the costs of its
debt burden as it
sought to lower interest expenses by turning unsecured
debt into secured
debt.
The College
Investor's Farrington suggests prospective students use websites such as salary.com to see what the job they are
seeking pays, then use the calculators such as the one at studentloan.com to see whether such a job would pay enough to service their
debt from student loans.
Improving real property in these ways is a win - win situation, because in
seeking a profit, the
investor is motivated to resolve legal title,
debt or tax issues AND / OR rehabilitating the property by making it attractive and useful once again.
The empowerment fund serves as a private
debt offering for these
investors who
seek exposure to a diversified, vetted, and high - impact portfolio of solar projects in emerging markets.
Enid
Investors Corporation v IBRC Ltd (2012) Instructed on behalf of a noteholder
seeking to challenge the validity of a substantial
debt restructuring carried out by Anglo - Irish Bank.
Debt Finance Fund — We advised on the structuring and documentation for this limited partnership bridge finance fund, seeking # 20 million from professional and high - net - worth investors to provide debt finance secured on UK prope
Debt Finance Fund — We advised on the structuring and documentation for this limited partnership bridge finance fund,
seeking # 20 million from professional and high - net - worth
investors to provide
debt finance secured on UK prope
debt finance secured on UK property.
Investors seeking stability and income will allocate to
debt investments.
To avoid the pricing and liquidity hurdles of real estate, Workman says, some family office
investors are
seeking creative ways to participate in the sector, such as investing on the
debt side or scoping out second - or third - tier markets where there's less competition from big institutional
investors.
Deutsche Bank is
seeking to take advantage of rising real estate values and
investor appetite for higher - yielding
debt.
However, the appetite for real estate
debt and equity remains high, and
investors — both domestic and international — are
seeking to double down on their exposure to real estate.
The group is
seeking opportunities that carry less risk than those pursued by its real estate opportunities funds, and the
debt strategy has appealed to
investors seeking yield, Frank said.
Potential to benefit from
debt, turnaround and restructuring exists where companies, hedge funds, private equity firms, investment banks and institutional
investors seek arbitrage.
Corporate and institutional clients are especially finding sale - leaseback transactions useful when they
seek to cash in on the equity from their real estate assets in order to grow their business and reduce some of the
debt from their balance sheets;
investors seeking more stable and predictable returns are also finding sale - leasebacks to be an attractive choice.
Most likely they'll have to do with acquiring credit, using
debt wisely,
seeking (and persuading)
investors, and marketing your products or services to buyers.
PCCP invests across the capital stack, from joint venture equity to senior and mezzanine
debt, while
seeking to identify the best risk - adjusted returns for our
investors.