Sentences with phrase «debt leverage»

Debt leverage refers to the practice of using borrowed money to increase investment returns. It means taking on debt in order to generate higher profits or returns on your investment. It involves using borrowed funds to magnify the potential gains of an investment, but it also increases the risk as you have to repay the borrowed money, which could be challenging if the investment doesn't perform well. Full definition
Note also that many REITs have high amounts of debt leverage, which you may not want in your portfolio.
Will this create even larger problems to come, by making the costs of living even higher as labor and industry become even more highly debt leveraged?
-- Goethe What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?
The company's net debt leverage ratio was 3.9 times at June 30, 2017.
In others — a slug of perpertual debt leverage in your personal capital structure boosts your personal ROI, as long is it doesn't create too risk.
Yet Mr. Obama's Deficit Reduction Commission is restricting its removal of tax favoritism for debt leveraging only for middle class homeowners, not for the financial sector across the board.
One almost can say that the ideal is to reduce parliaments to local puppet regimes serving the cosmopolitan financial class by using debt leverage to carve up what is left of the public domain that used to be called «the commons.»
Asset - price inflation gives way to crashing prices and negative equity for real estate and for much financial debt leveraging as well.
What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?
Should read — In other WORDS — a slug of perpertual debt leverage in your personal capital structure boosts your personal ROI, as long is it doesnâ $ ™ t create too risk.
In fact, because of its operating performance over the last couple of years, John Q. Hammons Hotels has pushed down its net debt leverage (a credit statistic that calculates debt to earnings before interest, taxes, depreciation and amortization) more rapidly than its competitors.
Debt leveraging inflates property prices, creating (6) hopes for capital gains, prompting buyers to take on even more debt in the speculative hope that rising asset prices will more than cover the added interest, which is paid out of capital gains, not out of current income.
This tax incentive for debt leveraging rather than equity investment is the reverse of what Saint - Simon and his followers urged in the 19th century to become the wave of the future.
And to subsidize debt leveraging, interest is made tax - deductible.
The trick is to persuade employees to hand retirement funding over to financial managers whose idea was to make money off the economy by extracting interest and dividends off workers, homeowners and companies being bought on debt leverage.
As an economic process, financialization makes money through debt leverage — taking on debt to pay for things that will increase income or the value of assets: for instance, taking out a loan for education or a mortgage on a property to open a store.
Primary similarities include 1) the security business throws off a steady cash stream from «subscribers», therefore allowing the use of significant debt leverage, 2) acquisition costs are capitalized and shield cash income from taxes, and 3) operational success depends heavily on efficient «subscribers» acquisition (marketing) and retention or churn management (service).
If the insured policy owner passes away while there is outstanding debt leveraged against the whole life policy, then the difference will be subtracted from any future death benefit payments.
Business sales shrink, because the banks recycle their interest receipts into even more loans — on even «easier» terms, meaning more debt leveraging.
Industrial firms also have been financialized, using debt leverage to increase their return on equity.
This will prevent another real estate bubble from being inflated by debt leveraging.
Together they vividly show how the amount of debt leverage can vary between healthy firms with low debt levels and plenty of cash to service it and troubled companies that are heavily leveraged and cash - poor.
Governments balance their budgets by privatizing public enterprises, selling «tollbooth» privileges on credit to buyers who bid up their prices by debt leveraging.
«We do not see any structural reason why THI couldn't increase its debt leverage and return the cash back to shareholders, if it chose to do so,» Michael Kelter, an analyst at Goldman Sachs, wrote in a research note to clients May 1, referring to Tim Hortons by its stock ticker symbol.
All that is needed is to traumatize and disable them politically by debt leverage.
Debt leveraging is depicted as the easiest and even the surest way to accumulate wealth — going into debt to buy assets whose prices are being inflated on credit, or to spend in the hope of paying out of rising and more easily earned future income.
Financed by debt leveraging, asset - price inflation increases rentier wealth while indebting the economy at large.
Forecasts promising that austerity will revive growth and that debt leveraging helps economies get richer faster rarely are innocent.
Credit — that is, debt leveraging — that is supposed to raise stock market prices to enable pension funds to meet their scheduled payments.
They also ignore the role of debt leveraging.
By the time this point has been reached, the financial managers have paid themselves outsized salaries and bonuses, and cashed in their stock options — all subsidized by the government's favorable tax treatment of debt leveraging.
Their financial surrender policy endorses the European Central Bank's lobbying for the neoliberal deregulation that led to the real estate bubble and debt leveraging, as if it were a success story rather than the road to national debt peonage.
Dept - to - GDP of whole countries has paralleled the debt leveraging of systemically Too - BIG - to - Fail Bank Holding Companies which means that the TBTF banks have to be broken up, and so too does the overtly overleveraged Central Banking System that currently controls the servicing of debts that are no longer actually serviceable from a mathematical standpoint.
It is also important to note that the recovery is unlike others in that it has been driven by debt leverage (stemming from Fed policy), and not real growth.
With interest rates insanely low, many corporate borrowers have been refinancing with leveraged loans — despite significant risks — and investors are eagerly snapping up the debt
In the final analysis it is debt leverage by itself that is supposed to fuel capital gains.
The bonds have greater safety and appreciation in the asset class, which has proven to do well during times of deflation and debt leveraging.
Together they vividly show how the amount of debt leverage can vary between healthy firms with low debt levels and plenty of cash to service it and troubled companies that are heavily leveraged and cash - poor.
You are free to lose all of your money (and more) if you are not judicious in the use of debt leverage.
Filed under Lease Options, Real Estate Investing, cash flow, creative options and leases, debt leverage, institutional lenders, interest rate, negative cash flow property, option, property value, pure options, real estate option.
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