Sentences with phrase «debt leveraging at»

-- 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?
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?

Not exact matches

On November 16, 2006, Clear Channel Communications, which was publicly traded at the time, announced that it had agreed to a leveraged buyout totaling $ 26.7 billion, including $ 18.7 billion for the shares plus the assumption of $ 8 billion in debt.
Though it initially slowed our growth down, by having low debt we never put the company at financial risk and built a strong foundation we can now leverage
Considering its strategic orientation of growing through acquisition, ACT has some latitude at the rating for periodically elevated leverage, but we believe that negative rating pressure would emerge if a transaction caused fully adjusted debt to EBITDA to exceed 3.5 x with risky prospects for a return to below 3.0 x. Moreover, the rating would be under pressure if increased competition caused weaker earnings, particularly from merchandise and services, keeping debt to EBITDA above 3x.
«The tax shield alone that the ESOP provides enables an ESOP to give a small business more debt, more senior credit, than they could get with other access to capital,» explains Mary Josephs, senior vice president of the Leveraged Finance Department at Chicago's LaSalle Bank Corp., an ESOP lender.
Bubble - type prosperity is based on debt - leveraged asset - price gains at the expense of the economy at large.
The result in the early 1980s when debt - leveraged buyouts really gained momentum was that financial investors were able to obtain twice as high a return (at a 50 % corporate income tax rate) by debt financing as they could get by equity financing.
Prior to joining Cerberus, Mr. McLeod managed the leveraged finance origination and execution activities at CIBC World Markets from 1998 to 2006, where he originated, structured and executed transactions involving high yield debt securities, leveraged loans, privately placed mezzanine securities and merchant banking investments.
At Bear, Stearns & Co., Mr. Abbott served as a Vice President in Financial Analytics & Structured Transactions (F.A.S.T) where he structured and reverse engineered complex CDO transactions, secured by a wide range of debt products, including high yield bonds, senior secured leverage loans, trust preferred bank loans, RMBS as well as other esoteric receivables.
And thirdly, of course, higher leverage means that monetary policy's impact via its effect on the behaviour of borrowers will be bigger than in the past — especially in a country like Australia where the majority of household debt is at floating rates.
Second, even if the bank did not own SIV debt, the use of the back - stop facility by the SIV meant that the leverage ratio of the sponsoring bank was suddenly increasing - even if the bank did not consolidate the SIV on its balance sheet at the time.
However, it's only risky on assets you have no control over or when you over leverage without looking at the cash flow closely after debt service.
Collateralized debt investors accepted lower and lower interest spreads at higher and higher degrees of leverage.
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.
Ms. Obloy began her career an at Morgan Stanley in the Corporate Finance Retail Industry Group where she procured, negotiated, and executed financial transactions including debt and equity financings, leveraged buy - outs and mergers & acquisitions.
To date, we do not see a systemic threat from leveraged lending, since broad measures of credit outstanding do not suggest that nonfinancial borrowers, in the aggregate, are taking on excessive debt and the improved capital and liquidity positions at lending institutions should ensure resilience against potential losses due to their exposures.
Rather, my impression is that the problems at JPM may be the result of using highly leveraged, illiquid derivative transactions as a «cross-hedge,» intended to reduce the risk of default in a whole portfolio of complex positions including (but not limited to) European mortgage debt, but with the long and short portions of the position behaving unexpectedly in relation to each other.
This has left the U.S. economy with a much more leveraged balance sheet than before the last crisis, and with much greater sensitivity to equity risk and debt default than at any point in history.
The rising U.S. federal debt burden now ranks the U.S. among the most leveraged developed - market countries, and puts the U.S. at increased risk of a sovereign - debt credit rating downgrade if the current trend continues.
kronkes influence over the club is minimal at best how many decisions does he actually make in the public club domain that we all know of, i am only guessing here but just because he is majority shareholder it doesn't mean he can just do what he wants without the other board members say so, i suppose the rest of the board would vote him out of power and liquidate his shares if he did something really wrong like leveraged the club against a big debt.
He has, though, outlined his admiration for the model the Glazer family have at Manchester United, which was a leveraged buyout that loaded debt on to the club.
It may be pertinent to mention that the book value of the power plant which is currently estimated at USD 325 million after five (5) years, with a life cycle of around 15 -20 years, will be handed over to the Government as a debt free asset which can be used to leverage and raise financing as a collateral or else the Government may choose to sell the operating asset to any investor who may not like to take any development risk, hence the plant being operational and in its best conditions.
Not just 0 debt owed this year, but 0 debt, and are therefore not leveraged at all.
What if they don't have much to do with movies at all, but are more like leveraged derivative instruments (I don't actually know what those are) or synthetic collateralized debt obligation (CDO) transactions, devised by accountants to provide maximum returns with minimum effort — that promise investors profits for next - to - nothing?
CSDC's lending activities have leveraged $ 25 million in additional private sector debt financing and often enabled its borrowers to obtain 100 % financing for their projects at interest rates ranging from 5 - 8 % and amortizations up to 25 years.
If a company's long - term debt burden is 100 % of its shareholder equity or more, it could be at risk of being too highly leveraged without a strong balance sheet to support it.
Look at the long term solvency of a firm, which can be judged by using leverage or capital structure ratios such as Debt Equity Ratio and Debt Assets Ratio.
The amount of leverage is huge; the face amount of debt insured at a AAA financial guaranty insurer can be more than one hundred times greater than their surplus.
«'' One variation I heard is that Paulson's buddies will form new companies and have G - Sax leverage loans and convert debt into equity that way as a way to keep up shareholder equity — then they will sell at the artificially high price back to others like them in a mini — bubble.
If the debt is at 2 % and the underlying assets pay 8 %, it creates 6 % more income on the leveraged side of the equation.
Extraordinary leverage via debt ratios is evident at the household, corporate and government level.
Leveraging gives you higher ROI (at times) and tax benefits on the mortgage debt side.
Reputable debt settlement companies have more leverage with creditors than a bank at times.
Basically if your creditors violate your consumer rights under this federal law and other laws, your attorney will use the violations as leverage to save you additional money, and at times even get your debt dismissed entirely.
My simple strategy to achieve this goal is getting rid of debt, spending less on unimportant things, leveraging all pre-tax accounts at my disposal and investing to watch it grow.
We are now able to group together at times hundreds of clients worth of debt, then negotiating on a large dollar amount where we have more leverage, solidifying better settlements.
But despite the allure of such leveraged investing strategies, there are at least four excellent reasons to be debt - free by your late 50s:
Leverage and interest coverage are both very strong for the group, in fact at 1.0 x Net Debt / NTM EBITDA the group is actually under - levered and would obtain a more optimal capital structure by adding debt at current rates, perhaps choosing to repurchase shares with the dDebt / NTM EBITDA the group is actually under - levered and would obtain a more optimal capital structure by adding debt at current rates, perhaps choosing to repurchase shares with the ddebt at current rates, perhaps choosing to repurchase shares with the debtdebt.
We absolutely are looking at the kind of changes that would take on a level of credit risk that would be prudent, but clearly, I would expect that the changes we're making would cause bad debt to go up higher, but hopefully with improve the top line and improve the bottom line because essentially it would allow us to leverage admissions and advertising spend, occupancy spend, even academic spending to the point of dealing with more fuller classrooms.
Third, leveraging only gives you an advantage to the extent that you can earn a higher return on your assets than your debt costs — so in effect points # 2 and # 3 are two ways of looking at the same thing, not two different benefits of leverage.
However, high yielding stocks are a VERY crowded trade because the Central Banks have kept interest rates low, probably in large part to facilitate servicing of the national debts and to allow the investment banks to recapitalize and at least partially recoup their bad leveraged bets.
Collateralized debt investors accepted lower and lower interest spreads at higher and higher degrees of leverage.
So, honestly, if U.S. Lime said «We're going to target a Net Debt / EBITDA level of 2 at all times and we're going to use all free cash flow beyond keeping leverage at that level to just buy back stock» - I'd feel totally differently about the stock.
It also has financial leverage, which is still at reasonably acceptable levels (68 % for property assets, 25 % for non-property assets) but I'd prefer to see some asset sales and debt paydown.
Refinance your mortgage at a lower rate and leverage home equity to pay off student debt — all at once.
Basic leverage screens look at factors such as debt to equity or liabilities to assets.
I believe current net debt poses no significant risk at this point — it should NOT be paid down, rather it should be maintained as prudent leverage to enhance returns.
However, it's only risky on assets you have no control over or when you over leverage without looking at the cash flow closely after debt service.
Net Leverage When evaluating the company that you will trust for your long term life insurance coverage, you will want to look at is their leverage, or debLeverage When evaluating the company that you will trust for your long term life insurance coverage, you will want to look at is their leverage, or debleverage, or debt level.
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