Sentences with phrase «high default rates»

«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.

Another reason why payday loan companies charge hefty fees is the comparatively high default rate for payday loans.

I ask because at first glance (haven't looked at the report in detail) the graphs are consistent with a simple «higher tuition means higher default rates» argument.

After the fiscal year 2013 default rates were released, nine for - profit schools and one private non-profit school were imposed sanctions due to excessively high default rates.

The two smallest groups of postsecondary graduates attended private and foreign colleges that both experienced slightly higher default rates.

On the other hand, banks argue that the debt is unsecured and made to young people who lack established credit, a combination that creates high default rates.

The sector continues to have higher rates of borrowing and lower graduation rates, along with significantly higher default rates.

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

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.

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.

Corinthian grads face difficulty finding employment in their field and consequently suffer from high default rates.

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 high default rates usually lead to lower interest rates, which push up the value of your Utilities stocks.

Due to the fact that borrowers experienced a much higher default rate on taxes and insurance when 100 % of the funds were taken at the initial draw, HUD changed the method by which the funds would be available to borrowers which no longer allows all borrowers access to 100 % of the Principal Limit at the close of the loan.

It wasn't until new issues slowed and ceased that the true high default rate was seen.

These recently released data, as well as other, more comprehensive data on default and loan repayment, can assist policy efforts to lower persistently high default rates.

Another determining factor in how high default rates will go is the extent of the housing crisis, according to Niswander.

As Google reps reported, «Research has shown that these loans can result in unaffordable payment and high default rates for users.»

High default rates on sub-prime mortgages made to high - risk borrowers with bad credit or those who had filed for bankruptcy or had a property in foreclosure, now have many lenders either shunning these loans or tightening credit requirements on them.

Possibly part of the reason that the default rate has declined is that the overall enrollment in proprietary schools slightly decreased and sanctioning institutions with excessively high default rates from accepting federal loans as payment.

But those loans performed dismally, helping to generate what were at the time the highest default rates in history, he said.

The downside to this type of lending is the high default rate.

Properties purchased as vacation or second homes tend to have a higher default rate.

These bonds have a very high default rate (historically greater than 25 per cent).

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

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

And it can do it for all the lender's offices in the entire nation, not just the office (s) in the region experiencing the high default rate.

Higher default rates mean higher interest rates.

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.

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

Then if a zero down payment contributes to higher default rates, then why is it that VA loans are the exception?

They have a high default rate.

An FHA lender in Nevada who plays by the rules is likely to have a higher default rate than a lender in South Dakota simply because of local economic factors.

However, only for the sake of argument, let us say that homes bought with down payment assistance do have a higher default rate then «regular» FHA loans.

Properties purchased as vacation or second homes tend to have a higher default rate.

Chase also experienced a higher default rate in December, as it wrote off 4.11 percent of balances on an annualized basis, compared with the previous month's 4.02 percent.

More debt and / or less income means a higher default rate.

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».

The reason is cash advances are somewhat risky to the lender because they must base their acceptance only on an income test, and not your credit rating, which means they approve too many people and then have a higher default rate.

As shown in the last table, for - profit schools have the highest default rates on average (15.03 %) as compared to public schools (11.35 %) and private schools (7.04 %).

It is not surprising that many of the schools with the highest default rates are non-degree and for - profit as these schools generally have very low or nonexistent eligibility criteria.

Though this may seem surprising at first glance, there is a possible explanation: All community colleges are considered public schools, and community colleges have a higher default rates, on average, as compared to traditional 4 - year colleges.