Sentences with phrase «excessive leverage in»

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.

Not exact matches

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

«I expect that the evolution of the financial system in response to global economic forces, technology, and, yes, regulation will result sooner or later in the all - too - familiar risks of excessive optimism, leverage, and maturity transformation reemerging in new ways that require policy responses.»

Perhaps you could confirm, but I believe that regulators in Canada required that capital requirements apply to SIVs of Canadian banks, limiting (not necessarily eliminating) excessive leverage and associated risk.

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.

Value creation, even if currently unrecognized by the market, is in our view taking place in the form of accretive acquisitions by companies with access to capital and good balance sheets from those forced to sell quality assets to address excessive balance - sheet leverage.

Most recently, though, on January 7, 2017, in a speech at the American Finance Association, you seemed to step out of that centrally casted character, almost coming across as an iron fist in a velvet glove: «The bottom line is that there has not been an excessive buildup of leverage, maturity transformation, or broadly unsustainable asset prices... Overall, I do not see leveraged finance markets as posing undue financial stability risks.

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.

This is what we found out: The major reasons why firms cut their dividend had to do with preserving cash amid a secular or cyclical downturn in demand for their products / services or when faced with excessive leverage (how much debt they held on their respective balance sheets) during tightening credit markets.

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.

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.

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

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.

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

«Since the plan focuses on excessive leverage as the fundamental cause of «too big to fail» risk, have they not considered that Fannie and Freddie each had capital of less than zero at the end of last year, so they had infinite leverage along with their $ 5.4 trillion in liabilities?»