Sentences with phrase «debt junk debt»

In this New York Times feature article, here is an in - depth look at just how sleazy credit card debt junk debt... [Read more...]

Not exact matches

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

The sell off in the market for high yield debt, or junk bonds, is now hitting a type of structured bond that is similar to the the type that blew up in the financial crisis.

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

Ratings agency Fitch knocked Portugal's debt down to one notch above Junk status.

The Medicis deal, financed through debt, has bumped the company's debt level to more than $ 7 billion, or a 4.2 debt ratio, forcing Moody's to put Valeant's debt — already in junk bond territory — under review for a downgrade.

Ratings agency Moody's reported Monday that the rolls of «potential fallen angels,» or issuers with investment - grade debt currently in danger of becoming junk, swelled by 17 in the third quarter, while no companies fell into the opposite category, called «potential rising stars.»

It also placed the country on review for a further downgrade, which — if it happened — would make Spanish debt «junk.»

Additionally, the bill will waive special deduction limitations for junk debt issued this year.

My wife and I lived in a pile of junk on a beautiful property for a dozen years before we were debt free and had the cash to tear it down and build our dream home.

Fitch and S&P joined DBRS at the end of 2017 in giving Portugal's debt an «investment grade» after years of considering it «junk.»

Moody's Investor Service downgraded Tesla's debt into junk territory back in March, warning at the time that Tesla didn't have cash to cover $ 3.7 billion for normal operations, capital expenses and debt that come due early next year.

But more debt could prompt a ratings downgrade to junk levels, raising the cost of borrowing, not to mention making the whole enterprise riskier if programming revenue does surprisingly start to fall.

As default rates on junk - rated debt is above nine percent, companies with junk status face an average interest rate that is a whopping ten percent points above Treasuries — these days, that translates into roughly 12 percent for a five - year loan.

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.

Most of the capital provided to these companies comes from high - yield («junk») corporate bond sales, preferred share offerings, and debt.

Just as significant as the ratings downgrades may be the suspension on Friday of the creditor talks in Greece — whose debt S. & P. long ago gave junk status.

The fund can purchase securities of any credit quality, including those in default, but it will primarily invest in investment - grade debt, with no more than 20 % of the portfolio invested in junk bonds.

His biography contains elements of an epic novel: growing up the son of a jailed Trotskyist labor leader in whose Chicago home he met Rosa Luxembourg's and Karl Liebknecht's colleagues; serving as a young balance of payments analyst for David Rockefeller whose Chase Manhattan Bank was calculating how much interest the bank could extract on loans to South American countries; touring America on Vatican - sponsored economics lectures; turning after a riot at a UN Third World debt meeting in Mexico to the study of ancient debt cancellation practices through Harvard's Babylonian Archeology department; authoring many books about finance from Super Imperialism: The Economic Strategy of American Empire [1972] to J is For Junk Economics: A Guide to Reality in an Age of Deception [2017]; and lately, among many other ventures, commuting from his Queens home to lecture at Peking University in Beijing where he hopes to convince the Chinese to avoid the debt - fuelled economic model off which Western big bankers feast and apply lessons he and his colleagues have learned about the debt relief practices of the ancient civilizations of Mesopotamia.

Junk economics denies the role of debt and denies the fact that the economic system we have now is dysfunctional.

WeWork took a gamble with its debut junk debt offering.

It's easier for them simply to swap their junk mortgages to the Treasury or Federal Reserve for full - value U.S. Treasury bonds, and make the government take the loss — and presumably levy taxes to cover the interest charges on the augmented debt!

This led to budget deficits, and Wall Street banks helped the government conceal its public debt in «free enterprise» junk accounting.

Investments rated below investment grade are commonly referred to as high - yield, high risk or «junk debt.»

So while these «fallen angel» bonds have the potential to be intrinsically higher quality than debt originally issued at the junk or high - yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.

One red flag for lenders is that the volume of energy debt rated CCC or below — the weakest ratings among junk bond issuers — has more than doubled to $ 62 billion from a year ago, Fitch said in a June 12 report.

The Obama Administration's Wall Street managers have kept the debt overhead in place — toxic mortgage debt, junk bonds, and most seriously, the novel web of collateralized debt obligations (CDO), credit default swaps (almost monopolized by A.I.G.) and kindred financial derivatives of a basically mathematical character that have developed in the 1990s and early 2000s.

There seems nothing to be done about banks impoverishing people by extortionate credit card rates, junk securities and a debt burden so heavy that it will require one bailout after another over the next few years.

Moody's Investors Service, which downgraded Tesla's credit rating further into junk in March, still expects Tesla will need to raise about $ 2 billion selling equity, convertible bonds or debt, to offset the cash it burns this year and securities maturing through early 2019.

Junk bonds are typically subordinated, unsecured debt obligations of the issuer.

The risk in higher yielding junk bonds first and foremost is derived from fact that any company paying north of 5 % to issue debt has a high probability of never paying back the investors who by the debt.

The Land of Lincoln's credit is already the lowest - rated in the union and, until recently, its debt came precariously close to being downgraded to «junk.»

``... The result of the junk bond process was to load American industry down with so much debt that there's no money to pay pensions...»

While it's as obvious as avoiding junk food if you want to lose weight, it's the hardest part of attaining freedom from debt.

In the case of the last crisis, yields went over 20 % on junk debt and even high - grade credits like Comcast and Nordstrom's were yielding in the low teens.

The proximate cause of death for virtually every defaulting junk bond is a liquidity crisis occasioned by either an inability to generate enough cash to service debt, or an inability to refinance maturing debt.

With $ 23 billion in debt and its bonds rated as junk, ArcelorMittal started to scale down.

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.

Relatively high debt loads as featured on pretty much every junk - rated issuer's balance sheet must be serviced with cash.

Junk bonds, bank loans, and other riskier types of debt have often been analogized to the canary in the coal mine when gauging the health of global markets.

Alert finance directors at junk - rated firms have taken advantage of interest rates near record lows to refinance at least $ 250 billion worth of debt over the past half year.

The eventual downgrade to junk, aka non-investment grade, will make IL debt ineligible for investment for some of their major institutional investors (one of which has already called for a boycott of Illinois debt) which are restricted by mandate to purchase only investment grade muni bonds.

The investor should note that vehicles that invest in lower - rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.

But there also was concern that the Syriza leaders did not begin immediately upon their January election victory to educate voters on what actually is at issue: why remaining subject to the junk - economics dictates by the IMF and ECB will make the economy subject to chronic debt deflation.

At its peak, Teck had more than $ 7 billion in debt outstanding, which caused its leverage ratio to rise, resulting in the company not only losing its investment - grade credit rating but getting downgraded deep into junk territory.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

Junk debt was pummeled to a crisis degree starting in late 2014.

On the subject of junk debt, in the first two quarters of 2014, European high yield bond issuance outstripped U.S. issuance for the first time in history, with 77 % of the total represented by Greece, Ireland, Italy, Portugal, and Spain.

Its fund holds emerging - market equity and debt, junk bonds, and commodities.»

-- Junk - bond investors are passing up traditional protections in their race to buy new debt, and some participants worry the diminished safeguards are a sign of an overheated market.