Sentences with phrase «for higher default»

However, what I've noticed though is that the higher interest received on riskier notes more than compensates you for the higher default rate you will experience.

Lenders consider borrowers with damaged credit as risky and charge high interest rates to compensate for higher default rates.

In other words, borrowers are paying for the high default rates, not lenders.

Not exact matches

Among those that Moody's rates, there were nine defaults in the first quarter, an «all - time high,» as Moody's put it, «reflecting the fallout of changing consumer behavior and advancing e-commerce for traditional brick - and - mortar retail.»

A default could result in Valeant having to pay back its loans immediately — something that would be very hard for it to do — or face much higher borrowing rates.

The SBA has released papers showing that in the early 2000s, defaults on its loans were higher for franchised vs. independent businesses.

If banks take deposits and hoard cash, the economy could contract, and if banks lend without regard for the borrower's ability to repay, high defaults could cause credit to seize up.

Safer default for brands — higher default levels will exclude potentially offensive content.

New default settings which meet a higher level of brand safety for where ads can appear on YouTube.

Investors could decide to ditch investments in the developing world both because higher rates in rich countries would make those investments comparatively less attractive and because their appetite for risk would likely drop in case of a U.S. default.

Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up of production of our new products, and our entry into new business channels different from those in which we have historically operated; the risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments; risks resulting from the concentration of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits of the transaction; the risk that retail customers may alter promotional pricing, increase promotion of a competitor's products over our products or reduce their inventory levels, all of which could negatively affect product demand; the risk that our investments may experience periods of significant stock price volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.

A DTI ratio of 50 % or higher is a bad sign to lenders, as it means you may have trouble paying back your debts (and thus may default on the unsecured loan you're applying for).

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.

Malls tend to have higher loss rates than other property types after a default, increasing the stigma for lenders, according to Lea Overby, an analyst at Morningstar Credit Ratings LLC.

The global synchronized economic expansion, a business - friendly administration in Washington, solid corporate credit quality, modest default activity, robust equity markets and a favorable supply - demand balance set a strong backdrop for high yield in the New Year.

It has been established that a large portion of income - driven plans are for higher income borrowers who are not likely to default on a loan.

It's unsecured, which means a higher interest rate because there's no property for the lender to seize if you default on the loan.

When borrowers request a loan for an amount that is at or near the appraised value, and therefore a higher loan - to - value ratio, lenders perceive that there is a greater chance of the loan going into default because there is little to no equity built up within the property.

Many employers are reluctant to suggest higher default contribution rates due to a concern that their workers might blindly accept what is not in their best interest, or that they might get intimidated and opt out of the plan altogether,» says Dr. Shlomo Benartzi, senior academic advisor to the Voya Behavioral Finance Institute for Innovation.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradeDefault risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradedefault on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

Buffett notes, for example, that late in a boom, the experience of corporate defaults and lawsuits is generally very low, but this can often be the time when exposure to such risk is the highest.

For example, a relatively high percentage of first - time borrowers will default on their credit cards, mortgages, and other loans.

Specifically, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company was engaged in predatory lending practices that saddled subprime borrowers and / or those with poor or limited credit histories with high - interest rate debt that they could not repay; (ii) many of the Company's customers were using Qudian - provided loans to repay their existing loans, thereby inflating the Company's revenues and active borrower numbers and increasing the likelihood of defaults; (iii) the Company was providing online loans to college students despite a governmental ban on the practice; (iv) the Company was engaged overly aggressive and improper collection practices; (v) the Company had understated the number of its non-performing loans in the Registration Statement and Prospectus; (vi) because of the Company's improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions by Chinese regulators; (vii) the Company's largest sales platform and strategic partner, Alipay, and Ant Financial, could unilaterally cap the APR for loans provided by Qudian; (viii) the Company had failed to implement necessary safeguards to protect customer data; (ix) data for nearly one million Company customers had been leaked for sale to the black market, including names, addresses, phone numbers, loan information, accounts and, in some cases, passwords to CHIS, the state - backed higher - education qualification verification institution in China, subjecting the Company to undisclosed risks of penalties and financial and reputational harm; and (x) as a result of the foregoing, Qudian's public statements were materially false and misleading at all relevant times.

They must compensate investors for their higher risk of default.

If you're maxing out your credit cards, or carry high balances, then you could carry a higher risk for default, or simply be viewed as an irresponsible spender in the eyes of a lender.

Tsipras is seeking to assuage the left flank of his party — some of whom want Greece to default on its debt altogether — by focusing on tax increases for companies and high - income individuals instead of spending cuts.

Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).

For roughly three decades, U.S. non-financial corporate debt as a percentage of U.S. nominal GDP and the high yield default rate moved in tandem.

For example, a 26th January ZeroHedge article includes the following chart and implies that the high (542:1) ratio of open interest to «registered» gold could soon result in a COMEX default.

As individuals normally hold far fewer bonds in their portfolio than bond mutual funds, the chances that a default will result in a large loss for the investor are generally higher for those investing in individual bonds.

The cost of protecting the company's subordinated debt from default for five years using credit - default swaps has more than doubled since the end of 2015, rising to 438 basis points, a four - year high, from 187.

The company, however, received the second - highest score after Google for its disclosure of it encryption policies (P16), disclosing that the transmission of users» communications is encrypted by default and with unique keys.

He joined Leith Wheeler from TD Bank in January 2009, where he'd spent the previous 10 years trading a proprietary bank portfolio of credit default swaps, investment grade and high yield bonds for TD in New York and London.

Theoretically, the default risk for Fannie Mae and Freddie Mac are slightly higher because they are technically not part of the US federal government.

For older borrowers who rely on student loans to finance their own education, government statistics show their default rate is much higher than that of younger borrowers.

Probably 8 out of 10 would say no for two reason: (1) the rating agencies gave high ratings to their lending activites and (2) the insurance companies (e.g. AIG) were giving them what they thought was a solid insurance policy against default.

They are still the default option for people who need a full keyword, high performance, and raw computing power.

The campaign warns voters about the effects of a possible default if the debt ceiling isn't raised by Aug. 2 and spins a near - doomsday scenario of high gas and food prices along with dire consequences for 401 (k) accounts.

An Accra High Court dismissed an application filed by the disputed Parliamentary Candidate, Nii Noi Nortey, which sought to set aside a default judgment thereby setting the pace for the opposition.

Absent the FDIC and Federal Reserve, banks would substitute a good credit rating and high capitalization for «insurance» or credit default swaps, because that will enable them to take cash loans from other banks to meet cash shortfalls, and ideally to prevent withdrawals in the first place.

She added that the highest college loan default rates are for people with balances below $ 5,000.

However, the counsel to the claimant F.A Ademu had filed a motion for default judgement against the defendant having failed to file their statement of defense within 30 days as provided in the state high court (civil procedure) rule 2006.

Instead of assuming a strategically located farmer's market, for instance, will by default mean kids in the neighborhood eat less food high in fat, sugar and salt, policymakers might want to also consider emphasizing the downsides of those choices.

But because they're a small biotech company, with high risk of default (i.e., a high risk of not paying off their debts), they would have to pay a very high interest rate in order to make the bond attractive enough for investors to purchase it.

All Ion Torrent reads were first aligned against the reference genome using BWA aln (v. 0.7.13)[47] using the default parameters, except for the parameter «- l 1024» to disable the seed and increase high - quality hits for the damaged ancient DNA reads [48].

For many, this becomes the mind's «default» setting which then sets the stage for chronic, psychosomatic conditions to creep in — such as Irritable Bowel Syndrome (IBS), low back pain, and high blood pressure, to name a fFor many, this becomes the mind's «default» setting which then sets the stage for chronic, psychosomatic conditions to creep in — such as Irritable Bowel Syndrome (IBS), low back pain, and high blood pressure, to name a ffor chronic, psychosomatic conditions to creep in — such as Irritable Bowel Syndrome (IBS), low back pain, and high blood pressure, to name a few.

Plus, after a trial published in The Lancet in 2002 found that delivering a breech baby (one whose head is up high and feet or butt are positioned to come out first) by C - section is safer for the fetus, the surgery became the default method for delivering multiples, regardless of the position of the babies.

If one assumes that respondents were more likely to say that they were circumcised (ie, the default answer is to give an affirmative answer to any question) and that the same people report higher levels of STDs, this may account for any association found.

You will meet many single people at the various events and this means by default you'll end up with a high chance of meeting the right kind of people for a relationship.

Two people apply for credit, they default to the lower person's credit, not the person with the higher credit.»