Sentences with phrase «excessive leverage»

Conservative investors would probably prefer to avoid companies with excessive leverage.

But I'll systematically haircut my P / S ratio for excessive leverage — although, in all likelihood, I'd probably avoid investing in such a stock.

Among the choices though I think excessive leverage has been the most personally painful.

As you're no doubt aware, Bear Stearns» demise was fueled primarily by excessive leveraging and overweight exposure to junk mortgage - backed securities.

In response to the historically low cost of borrowing across financial markets, prudential regulators have begun to focus on whether low interest rates are encouraging excessive leverage and risk taking — which could unwind when interest rates rise, say European credit analysts at Barclays.

While the US residential mortgage market was the primary cause, we all know that its helpmate in sparking a global financial crisis was excessive leverage in the financial system.

We exploit this weakness by focusing on quality: businesses that generate high and consistent ROIC / ROE, are run by skilled capital allocators, and produce enough free cash flow to self - fund growth without excessive leverage or dilution.

Not surprisingly, lower P / Bs are usually the result of excessive leverage.

What Richard Koo calls balance sheet recessions, that is, ones which feature excessive leverage, are much nastier beasts.

My solution is to seek out cheap stocks which are genuinely less / un-correlated with (ideally) both the market & the economy, and which avoid excessive leverage — they may provide a lot more reassurance & protection.

In the committee's view, a combination of CCPT III and ARCP would create excessive leverage levels, including an additional $ 1.2 billion to $ 2.4 billion of debt to fund the 20 percent to 40 percent cash component of ARCP's proposal.

As long as the market isn't driven by excessive leverage (such Ft Myers) it's hard to have a crash.

Handicap your valuation severely for excessive leverage (and / or pension deficits), and think twice about making such an investment anyway — it's nigh impossible to predict the winners from the far more frequent losers.

The report cites regulatory failures, lapses in corporate governance, and excessive leverage as key factors contributing to the financial crisis.

The financial crisis was due, in large part, to excessive leverage and excessive investment in real estate assets.

Excessive leverage and overcapacity remain major risks for the country's long - term growth prospects.

The study, «Robust Capital Regulation,» proposes using both core capital requirements (similar to existing rules) and a special capital account to address a bank's incentive to take on excessive leverage and risk.

Excessive leverage can also be called «irresponsible use of risk capital», aka NOT practicing proper capital preservation.

The move is a big gamble on the part of Governor Stephen Poloz, who hopes the rate cut will both spur companies to spend and help fend off low inflation, but the risk is that Canada's already over-indebted households will put themselves in even more danger by taking on excessive leverage.

They learned their lessons in 2008 with regards to excessive leverage and by and large have very good balance sheets, and so I think yes, they're expensive because part of their sales has been driven by very low interest rates.

King lets many bankers off too easily here — their excessive leverage and risk - taking were based on flawed assumptions which could easily have been avoided.

China's debt - to - GDP ratio of 282 % (according to McKinsey) is likely the most glaring example of a very large economy taking on excessive leverage to sustain growth.

It's entirely another thing for stocks to be roughly double their historical norms of valuation, being led primarily by speculative garbage stocks, in an economy driven not by booming investment but excessive leverage and over-reliance on foreign capital, with no particular leadership - medical, pharmaceutical, technological, manufacturing, or otherwise - and importantly, with interest - sensitive groups such as bonds and utilities breaking down.

CySEC notes that the brokers offering «excessive leverage» to retail clients are most likely not doing it in the best interest of the clients, hence from now on all forex and binary options brokers should design their trading systems to set as default a lower leverage and give them the option, if they wish, to change the leverage to a higher level.

Excessive leverage can also be called «irresponsible use of risk capital», aka NOT practicing proper capital preservation.

When does the excessive leverage finally eliminate the CEO?

Throttled quants everywhere were suddenly engaged in a prolonged bout of soul - searching, questioning whether all their brilliant strategies were an illusion, pure luck that happened to work during a period of dramatic growth, economic prosperity, and excessive leverage that lifted everyone's boat.

However, the inherent complexity of the products and their excessive leverage — in the case of CFDs — has resulted in significant losses for retail investors.A pan-EU approach is required given the cross-border nature of these products, and ESMA's intervention is the most appropriate and efficient tool to address this major investor protection issue.»

But in 1998, with five hotels still under construction, the excessive leverage prompted the company to cease development.