Most of the small companies that apply for a loan in Wonga have
high default rates for their loans.
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.»
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 percen
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 percen
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 percen
for - 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 a
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 a
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 a
default (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 pas
Default 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 pas
default 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.