Sentences with phrase «high default rate for»

When reviewing our policies, research has shown that these loans can result in unaffordable payment and high default rates for users so we will be updating our policies globally to reflect that.»

Most of the small companies that apply for a loan in Wonga have high default rates for their loans.

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

The default rate of black graduates is significantly higher than the default rate for first generation, low - income graduates (13 percent, not shown in table).

Scott - Clayton and Li (2016) provide evidence that poorer labor market outcomes and for - profit enrollment at the graduate level contribute to high rates of default among black college graduates.

[xxxii] A recent study by Jackson and Reynolds, for example, finds that loans promote higher rates of persistence and completion among black undergraduates, and concludes that despite racial gaps in default rates, loans are nonetheless «an imperfect, but overall positive tool for reducing educational inequality» by race.

For example, for the 2003 - 04 cohort, the default rate among borrowers was about twice as high at for - profits as at public two - year institutions (52 percent versus 26 percenFor example, for the 2003 - 04 cohort, the default rate among borrowers was about twice as high at for - profits as at public two - year institutions (52 percent versus 26 percenfor the 2003 - 04 cohort, the default rate among borrowers was about twice as high at for - profits as at public two - year institutions (52 percent versus 26 percenfor - profits as at public two - year institutions (52 percent versus 26 percent).

Default rates among borrowers have actually fallen sharply among all races (see Figure 1, Panel B), likely due to changes throughout the 1990s which increased the penalties for institutions with high default rates and made it harder for students to avoid making repayments even after entering default (more recently, new repayment options may also have played aDefault rates among borrowers have actually fallen sharply among all races (see Figure 1, Panel B), likely due to changes throughout the 1990s which increased the penalties for institutions with high default rates and made it harder for students to avoid making repayments even after entering default (more recently, new repayment options may also have played adefault rates and made it harder for students to avoid making repayments even after entering default (more recently, new repayment options may also have played adefault (more recently, new repayment options may also have played a role).

[2] More recent work that tracks debt outcomes for individual borrowers documents that the main problem is not high levels of debt per student (in fact, defaults are lower among those who borrow more, since this typically indicates higher levels of college attainment), but rather the low earnings of dropout and for - profit students, who have high rates of default even on relatively small debts.

On average, students who attend for - profits have poor graduation rates, high loan - default rates, and dismal job prospects.

However, arrears and default rates are higher, and have risen more, among customers with the lowest credit ratings, who account for about 3 % of lending.

For example, the yields on CCC - rated high yield bonds are quite low on a 10 - year basis given the historically higher default rates in this low - quality portion of the market.

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

Because adding debt against the value of your house increases your risk of default, lenders charge higher interest rates for second mortgages.

For younger students, who do not have sufficient credit history, monthly payments on private student loans could be hardly bearable, as the interest rate set by lenders is typically very high to offset potential risk of default.

Ratings range from «AAA» to «Aaa» for «high grade» issues very likely to be repaid to»D» for issues that are in currently in default.

For example, those who carry high average balances on credit cards tend to default at a much higher rate.

Also, it's good to note that while it was popular just prior to the financial crisis, the fact that borrowers sometimes owed more than their homes were worth and that default rates for piggyback loans were high after the housing bubble burst, nowadays it is more challenging to locate one.

Payroll lenders charge high enough interest rates to compensate them for the risk that borrowers will default.

Scores below 580 are indicative of a consumer's poor financial history, which can include late monthly payments, debt defaults, or bankruptcy; individuals in this «subprime» category can end up paying auto loan rates that are 5 or 10 times higher than what prime consumers receive, especially for used cars or longer term loans.

High interest rates, short repayment times and disastrous consequences for defaulting are common threads in the very large family of loans to avoid.

«junk bond king» wrote a thesis that two percentage points were enough compensation for the likely higher default rate of a junk bond fund over a corporate bond fund.

The default rate is three times higher for students who leave college without a degree.

It is important to know, though, that any unsecured loan will carry a high interest rate since there is no collateral for the lender to fall back upon should your payments default.

Because of multiple payments for different loans, there has historically been a high default rate, as juggling multiple loans gets tricky.

This theory, based on the assertion that home buyers with little personal investment in their homes stand to default on home loans at a higher rate than those who've made the 10 % to 20 % down payment plus closing costs required for conventional mortgages.

An Education Sector report from 2007 found that, ten years after graduation, the default rate for African American students was more than five times higher than the default rate for white students, and the default rate for Hispanic students was more than twice the rate for white students.

Economic Risk — During poor economic conditions, and particularly during periods of high unemployment, default rates for notes could increase substantially.

However, the interest rate isn't necessarily the same thing as some bonds may have higher yields do to the potential for defaults like junk bonds for example.

defaults (which happens more often than we would like to think), here also look for higher rating bonds portfolio that the fund / scheme carries.

Lenders will ding you with higher interest rates and severe penalties if you default, and usually require a personal guarantee for the loan.

The interest rate tends to be higher, since a second mortgage is a bigger risk for a lender (in the event of default, your first mortgage is the one that gets paid off).

Or the student's college may have opted out of the federal student loan programs to preserve eligibility for the Pell Grant program, since schools with high cohort default rates lose eligibility for both federal loans and grants.

Student Loan Default Rates and Rehabilitation Program: How to Get Back on Track Paying for Your LoansStudent loan default rates have been remarkably high during the pasDefault Rates and Rehabilitation Program: How to Get Back on Track Paying for Your LoansStudent loan default rates have been remarkably high during the past Rates and Rehabilitation Program: How to Get Back on Track Paying for Your LoansStudent loan default rates have been remarkably high during the pasdefault rates have been remarkably high during the past rates have been remarkably high during the past year.

The precipitating factor for the Financial Crisis of 2007 — 2008 was a high default rate in the United States subprime home mortgage sector — the bursting of the «subprime bubble».

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.

Looking for college and school loans outside of the traditional methods can be very risky, as the rates are usually much higher, the terms are not as forgiving, and the penalties for default can be severe.