Sentences with phrase «high leverage loans»

The banks require this on high leverage loans to insure against default.
That is common knowledge in the lending business so the next question is why would the government continue to create high leverage loans using FHA financing?

Not exact matches

Total issuance of leveraged loans and high yield bonds is down by nearly $ 140 billion this year compared to 2014, to about $ 575 billion.
As you know, most of that mix has been in more highly leveraged stuff, Covenant - Lite loans - high yield, that's where the majority of the rise has been.
As you know, most of that mix has been in more highly leveraged stuff, Covenant - Lite loanshigh yield, that's where the majority of the rise has been.
Our team of credit professionals deliver sales and trading capabilities across a wide range of fixed income asset classes including high yield, distressed and investment grade bonds, convertible bonds, public and private corporate securities, leveraged loans and emerging market debt.
We trade all fixed income assets, with a focus on more illiquid situations, from high yield, distressed and investment grade bonds and convertible bonds to public and private corporate securities and leveraged loans.
Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.
Prior to joining Cerberus, Mr. McLeod managed the leveraged finance origination and execution activities at CIBC World Markets from 1998 to 2006, where he originated, structured and executed transactions involving high yield debt securities, leveraged loans, privately placed mezzanine securities and merchant banking investments.
Borrowings under our credit facility bear interest at a per annum rate equal to, at our option, either (a) for LIBOR loans, LIBOR (but not less than 1.0 %) or (b) for ABR loans, the highest of (i) the federal funds effective rate plus 0.5 %, (ii) the prime rate, or (iii) one month LIBOR plus 1.0 %, plus a margin ranging from 3.25 % to 3.75 % for LIBOR loans and 2.25 % to 2.75 % for ABR Loans, depending on our leverage ratio and on certain factors relating to this offeloans, LIBOR (but not less than 1.0 %) or (b) for ABR loans, the highest of (i) the federal funds effective rate plus 0.5 %, (ii) the prime rate, or (iii) one month LIBOR plus 1.0 %, plus a margin ranging from 3.25 % to 3.75 % for LIBOR loans and 2.25 % to 2.75 % for ABR Loans, depending on our leverage ratio and on certain factors relating to this offeloans, the highest of (i) the federal funds effective rate plus 0.5 %, (ii) the prime rate, or (iii) one month LIBOR plus 1.0 %, plus a margin ranging from 3.25 % to 3.75 % for LIBOR loans and 2.25 % to 2.75 % for ABR Loans, depending on our leverage ratio and on certain factors relating to this offeloans and 2.25 % to 2.75 % for ABR Loans, depending on our leverage ratio and on certain factors relating to this offeLoans, depending on our leverage ratio and on certain factors relating to this offering.
At Bear, Stearns & Co., Mr. Abbott served as a Vice President in Financial Analytics & Structured Transactions (F.A.S.T) where he structured and reverse engineered complex CDO transactions, secured by a wide range of debt products, including high yield bonds, senior secured leverage loans, trust preferred bank loans, RMBS as well as other esoteric receivables.
One thing you see is this huge increase in what's called leveraged loanshigh - yield, syndicated loans.
The leveraged loan market just achieved something it hasn't been able to do since 2008 — moved within $ 100 billion of the U.S. high - yield bond...
Borrowings under our credit facility bear interest at a per annum rate equal to, at our option, either (a) for LIBOR loans, LIBOR (but not less than 1.0 % for the term loan only) or (b) for ABR loans, the highest of (i) the federal funds effective rate plus 0.5 %, (ii) the prime rate, or (iii) one month LIBOR plus 1.0 %, plus a margin ranging from 3.25 % to 3.75 % for LIBOR loans and 2.25 % to 2.75 % for ABR Loans, depending on our leverage ratio and on certain factors relating to this offeloans, LIBOR (but not less than 1.0 % for the term loan only) or (b) for ABR loans, the highest of (i) the federal funds effective rate plus 0.5 %, (ii) the prime rate, or (iii) one month LIBOR plus 1.0 %, plus a margin ranging from 3.25 % to 3.75 % for LIBOR loans and 2.25 % to 2.75 % for ABR Loans, depending on our leverage ratio and on certain factors relating to this offeloans, the highest of (i) the federal funds effective rate plus 0.5 %, (ii) the prime rate, or (iii) one month LIBOR plus 1.0 %, plus a margin ranging from 3.25 % to 3.75 % for LIBOR loans and 2.25 % to 2.75 % for ABR Loans, depending on our leverage ratio and on certain factors relating to this offeloans and 2.25 % to 2.75 % for ABR Loans, depending on our leverage ratio and on certain factors relating to this offeLoans, depending on our leverage ratio and on certain factors relating to this offering.
TPG Institutional Credit Partners (TICP) is TSSP's platform for investing in non-investment-grade corporate credit, including leveraged loans, structured financings, and high - yield bonds.
This would include investment - grade corporate credit, high - yield and leveraged loans.
When we look at investment - grade credit, high - yield and leveraged loans, we see a lot of the same characteristics or fundamental drivers.
For borrowers, leveraged loans offer two significant advantages over high - yield bonds: They are cheaper, by about 100 basis points on average at the moment.
Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.
-- Income more difficult to provide clients, in a zero rate environment many will suggest high yield corporate bonds and leveraged loans to supplement traditional fixed income but many clients are not willing to sacrifice quality for a higher yield.
Leveraging our leading institutional distribution platform, our goal is to provide our clients with solutions across all banking products, including initial public offerings, follow - on offerings, wall - crossed offerings, bought deals, private placements, ATMs, convertible offerings, leveraged loans, investment grade and high - yield debt offerings and all forms of advisory services.
Central bank intervention in global bond markets has «crowded out» many traditional fixed income investors, driving them to seek yield and income from non-traditional and riskier asset classes such as high yield, emerging markets debt, leveraged loans and private credit.
The global volume of outstanding leveraged loans, as recorded by S&P Global Market Intelligence, reached new highs (above $ 1 trillion).
* For people who don't understand the concept of Exposure or leverage, it is basically a short - term loan offered by the stockbroker to its clients so that they can trade or invest at a much higher scale.
However, an aspect of leveraged loans that was not developed in this article is that the loans are secured by the assets of the operating company and the terms are usually superior to those of high - yield bonds, which are generally unsecured.
However, leveraging your home equity can be another way to pay for higher education if you're looking for alternatives to student loans.
Currently the S&P / LSTA U.S. Leveraged Loan 100 Index has returned 0.12 % MTD and 2.20 % YTD while the S&P U.S. High Yield Corporate Bond Index has returned -0.20 % MTD and 4.78 % YTD.
It is true that college loans can actually be a leverage for people who would have been unable to attend higher institution of their choice as a result of lack of fund.
Continuing to yield 4.34 %, the S&P / LSTA U.S. Leveraged Loan 100 Index has returned +0.08 % month - to - date while the similar credit of high yield was down -0.15 %.
Lagging behind high yield for the first half of the year is the speculative grade loan index, the S&P / LSTA U.S. Leveraged Loan 100 Index, which has returned 2.4loan index, the S&P / LSTA U.S. Leveraged Loan 100 Index, which has returned 2.4Loan 100 Index, which has returned 2.48 %.
Student loans as an issue is such a big headline now a days I REALLY hope high school students see them and think hard about leveraging themselves and have a plan to keep it as low as possible through savings in high school, summer jobs, cutting back on spending while in college / university.
Though a borrower may have to endure interest rates in the double digits, the sort of leverage the loaned funds allow, especially in real estate markets, is often well worth the high cost of the loan.
Though both the S&P / LSTA U.S. Leveraged Loan 100 Index and the S&P U.S. Issued High Yield Corporate Bond Index have seen their yields trend downward from the start of the year, loans have experienced more downward movement dropping 75 bps, while high yield only moved 31 High Yield Corporate Bond Index have seen their yields trend downward from the start of the year, loans have experienced more downward movement dropping 75 bps, while high yield only moved 31 high yield only moved 31 bps.
Yields are also higher for the S&P U.S. Issued High Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate dHigh Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate dhigh - yield corporate debt.
The existing loan that is refinanced is repaid at par, which could result in a further hit to yield if the loan was trading above par (as of May 31, 2017, approximately 60 % of the S&P / LSTA Leveraged Loan 100 Index was bid at par or highloan that is refinanced is repaid at par, which could result in a further hit to yield if the loan was trading above par (as of May 31, 2017, approximately 60 % of the S&P / LSTA Leveraged Loan 100 Index was bid at par or highloan was trading above par (as of May 31, 2017, approximately 60 % of the S&P / LSTA Leveraged Loan 100 Index was bid at par or highLoan 100 Index was bid at par or higher).
Though joint home loan makes you eligible for higher loan amount and also offers tax benefits, do not over leverage yourself.
Unlike high yield debt, senior loans as measured by the S&P / LSTA U.S. Leveraged Loan 100 Index sat the sidelines for the month of February.
Although the bond market is also volatile, lower - quality debt securities including leveraged loans generally offer higher yields compared to investment grade securities, but also involve greater risk of default or price changes.
These are loans that are typically taken on by firms with higher existing levels of debt (hence the use of «leveraged» in the name).
The loan terms also make a big difference in how high I'm willing to leverage.
«'' One variation I heard is that Paulson's buddies will form new companies and have G - Sax leverage loans and convert debt into equity that way as a way to keep up shareholder equity — then they will sell at the artificially high price back to others like them in a mini — bubble.
The leverage loan market has been overrun by such massive inflows of capital that you could probably get a loan to buy a fleet of zeppelins at this point in time... the S&P 500 is trading 3 turns higher than the 50 - year average of 2016.
Lower - rated credit indices such as the S&P U.S. High Yield Corporate Bond Index and the S&P / LSTA U.S. Leveraged Loan 100 Index have not greatly outpaced investment grade corporates YTD, given the increase in risks.
Much of last week's leveraged loan positive return accompanied a 3.2 % rally in equities (S&P 500) and a 0.8 % high - yield bond rally as measured by the S&P U.S. Issued High Yield Corporate Bond Inhigh - yield bond rally as measured by the S&P U.S. Issued High Yield Corporate Bond InHigh Yield Corporate Bond Index.
Similar to high - yield bonds, speculative - grade senior loans, as measured by the S&P / LSTA U.S. Leveraged Loan 100 Index, have returned -0.36 % MTD and 2.27 % YTD.
To date the more speculative indices S&P / LSTA U.S. Leveraged Loan 100 Index, S&P U.S. Issued High Yield Corporate Bond Index and S&P Municipal Bond High Yield Index are returning 0.10 %, 1.11 % and a just slightly negative number of -0.16 %, respectively.
The source of the data comes from the S&P / LSTA U.S. Leveraged Loan 100 Index, the S&P 500 ®, the S&P GSCI ®, the S&P / BGCantor 7 - 10 Year U.S. Treasury Bond Index, the S&P U.S. Issued High Yield Corporate Bond Index, the S&P U.S. High Quality Preferred Stock Index, and the S&P U.S. Preferred Stock Index.
Compared to the municipal high yield's 7.35 year duration and the U.S. Issued High Yield's duration of 4.86 %, the weekly reviewed leverage loan index will be least effected to the change in rahigh yield's 7.35 year duration and the U.S. Issued High Yield's duration of 4.86 %, the weekly reviewed leverage loan index will be least effected to the change in raHigh Yield's duration of 4.86 %, the weekly reviewed leverage loan index will be least effected to the change in rates.
Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.
The S&P / LSTA U.S. Leveraged Loan 100 Index has returned 1.76 % year to date under performing vs. fixed rate high yield bonds.
a b c d e f g h i j k l m n o p q r s t u v w x y z