Sentences with phrase «high default rate in»

It was nothing against CA, but the data showed a very high default rate in the state.

An investigation by New York City's Department of Consumer Affairs of the high default rate in consumer credit cases found that disreputable process - serving companies were never actually serving process, but instead effectively tossing the papers in the sewer and filing false affidavits of service.

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».

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.

But it might not be for any one reason, such as a higher default rate in state X or fewer natural disasters in state Y. Or more regulations in another state.

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.

These types of loans also carry other risks, such as demand provisions under which a bank can arbitrarily demand repayment, as well as high default rates, putting borrowers in a difficult spot.

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.

China may witness its first local government bond defaults, although the timing was uncertain, Fitch Ratings said in a press release issued on Sunday, amid persistent concerns over high debt levels in the world second largest economy.

In these circumstances, banks will respond to higher cash rates by rationing credit, to ensure that their average default rates remain low.

If it is mainly the highest - risk borrowers who take advantage of higher limits, or if the higher limits encourage more reckless borrowing in general, then default rates will climb, eating away at profit margins.

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.

Investing in higher - yielding, lower - rated, floating - rate loans and debt securities involves greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.

In fact, you often end up earning way more $ $ $, at higher interest rates, as I did on 2 of my defaulted investments.

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.

It has a very very high default rate (as mentioned in the con section) and the customer service is really poor.

Because credit and default risk are the dominant drivers of valuations of high yield bonds, changes in market interest rates are relatively less important.

Quantitative easing subsidizes U.S. capital flight, pushing up non-dollar currency exchange rates Quantitative easing may not have set out to disrupt the global trade and financial system or start a round of currency speculation, but that is the result of the Fed's decision in 2008 to keep unpayably high debts from defaulting by re-inflating U.S. real estate and financial markets.

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.

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.

Rising interest rates are likely to result in investors projecting ahead to slower economic growth and the possibility of higher default rates.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

Although he says he is not sure whether the market will suffer $ 10 billion or $ 30 billion in defaults, he is certain that there will be a panic at the margin, and Muni bonds from the highest - rated on down will fall, in part because other investors tend not to step to invest.

Meanwhile, corporate debt remains at record highs while default rates have been at sustained lows — «something's got ta give,» S&P wrote in a report earlier this month.

High - yield corporate bonds are rated below investment grade and are subject to greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.

In the recession before that, the default rate went as high as 7.79 %.

Those higher interests rates increase the financial burden on your country, and that in turn makes default more likely.

Holding an individual bond to maturity will result in the return of principal (assuming the bond issuer doesn't default), but those nominal dollars will be worth less with inflation and during periods of higher interest rates.

Also, if your credit history reveals that you usually default in making payment, you should expect high interest rate.

Since 1970, when they began tracking defaults, the rate is even lower at 0.07 %.2 Compare that to global corporate bonds, which defaulted at a 2.06 % rate in 2016.3 It's important to note that the overall muni rate remained that low despite 2016 having the highest municipal defaults volume on record, all related to Puerto Rico.

Subprime auto - loan delinquencies are rising and Experian recently reported that the national bank credit - card default rate set a 46 - month high in April at 3.35 %, which was up from 3.09 % a year earlier.

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.

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).

[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.

In 2006, a U.S. Department of Education report noted that black graduates were more likely to take on student debt, and in 2007, an Education Sector analysis of the same data found that black graduates from the 1992 - 93 cohort defaulted at a rate five times higher than that of white or Asian students in the 10 years after graduation (Hispanic / Latino graduates showed a similar, but somewhat smaller disparityIn 2006, a U.S. Department of Education report noted that black graduates were more likely to take on student debt, and in 2007, an Education Sector analysis of the same data found that black graduates from the 1992 - 93 cohort defaulted at a rate five times higher than that of white or Asian students in the 10 years after graduation (Hispanic / Latino graduates showed a similar, but somewhat smaller disparityin 2007, an Education Sector analysis of the same data found that black graduates from the 1992 - 93 cohort defaulted at a rate five times higher than that of white or Asian students in the 10 years after graduation (Hispanic / Latino graduates showed a similar, but somewhat smaller disparityin the 10 years after graduation (Hispanic / Latino graduates showed a similar, but somewhat smaller disparity).

[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.

It sounds as if the private teacher preparation system in Texas comes very close to the scandalous and very expensive (to students, parents, and the federal government - through very high default rates on guaranteed student loans) «private college» system which is currently being forced to clean up its act.

They find that the higher the percentage of public employee who are unionized, the greater risk investors see of the state defaulting on its bonds, resulting in higher interest rates

Defaulting on a loan will cause a substantial and lasting drop in the debtor's credit score, as well as extremely high interest rates on any future loan.

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.

These loans come in small amounts but carry extremely high interest rates, so they are easy to default.

This could have the effect of chilling FHA lending in economically depressed areas of the country (which tend to have higher default rates), adding another obstacle to housing market recovery.

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.

An option could be to invest in an ETF with short term bonds (e.g. 1 year) with AAA credit rating (high quality, so very low default rate).

The main danger of a junk bond fund is that there will be a higher rate of bankruptcy / default than in an investment grade bond fund.

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

Since 1970, when they began tracking defaults, the rate is even lower at 0.07 %.2 Compare that to global corporate bonds, which defaulted at a 2.06 % rate in 2016.3 It's important to note that the overall muni rate remained that low despite 2016 having the highest municipal defaults volume on record, all related to Puerto Rico.

Bad credit student loans already have high interest rates compared to regular student loans but if you also default on the loan, you can incur in penalty fees and additional charges.