Sentences with phrase «expected higher defaults»

This would imply that it would make sense to skew investments towards higher rated borrowers (A & B), as the total return will likely be higher after accounting for the expected higher defaults in C and lower borrowers.

Not exact matches

But a continuation of favorable economic growth and low default levels — which we expect — and measured Federal Reserve tightening — which we also expect — should support more narrow high - yield bond spreads for some time to come.
While I don't expect a significant deterioration in credit markets next year, conditions are turning less favorable: corporate leverage is higher, default rates are rising and with oil hovering near $ 40, energy issuers are at risk.
Also, if your credit history reveals that you usually default in making payment, you should expect high interest rate.
It doesn't appear that the concerns over the swaps were ever put in terms of systemic risk but rather as just something that had higher than expected likelihood of default.
Without a cosigner with a good rating, the bank will charge a higher APR to offset the higher expected default rate.
As you might expect, the lower the quality, the higher the rate of interest investors demand to reward them for accepting the increased risk of default.
Also, if your credit history reveals that you usually default in making payment, you should expect high interest rate.
With the broader onset of automation, many of the best notes (highest expected return, lowest risk of default) are gone before you could manually buy them.
Applying a quality screen to the market can remove those securities with the highest expected chance of defaulting, resulting in a higher quality universe of securities from which to build a portfolio.
The pace of price recovery plays a major role Should oil prices recover over the next year, we would not expect to see high levels of defaults in the high - yield market.
Higher default rates are to be expected in lower paying occupations like Nurse's Aide (51 % default rate) and food service (44 %) but you might be surprised to see that realtors (49 %) have the second - highest default rate.
If you doubt this, consider the high currently expected rate of default on FHA loans originated over the last two years.
I should expect a few defaults here and there that will eat into my returns since I'm going for the higher APR loans.
In an age where addictive gameplay usually comes with a «microtransaction» premium, Bravely Default challenges everything we've come to expect from a brand new, high quality handheld franchise.
What is more readily available are lender insurance policies that protect against two unlikely events: borrower defaults and the environmental costs being higher than expected.
Morningstar Credit Ratings believes the delinquency rate will hold below 3.0 percent after reaching an 18 - month high of 2.19 percent in June, as there are fewer securitized commercial mortgages left that we expect will default at maturity, resolutions remain high and issuance has picked up.
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