Firms with
high leverage rates have had to adjust staffing to stay profitable, and all have to continue developing and refining in - house capabilities to deploy new technologies and manage their outputs.
A high leverage rate is a major reason why HTR has such a great (but not spectacular) dividend yield.
Higher leverage rates will only be offered to those traders who have demonstrated a proven track record with their investments, and the amount of leverage available will always differ depending on the trader account type with the broker.
Less experienced traders will be restricted to a maximum leverage of 100:1, but more experienced ones will be able to select
a higher leverage rate.
Not exact matches
Elevated debt levels from the acquisition, after accounting for the recent C$ 345 million equity issue, contribute to estimated pro forma
leverage of about 3.5 x, which is
high for the
rating.
The result in the early 1980s when debt -
leveraged buyouts really gained momentum was that financial investors were able to obtain twice as
high a return (at a 50 % corporate income tax
rate) by debt financing as they could get by equity financing.
Zibby
leverages its proprietary underwriting technology to boast the industry's fastest application process,
highest approval
rates, and lowest loss
rates.
High saving economies routinely produce another destabilising characteristic — high leverage ratios (Wade and Veneroso 1998), which leave enterprises vulnerable to changes in the macro settings, particularly interest ra
High saving economies routinely produce another destabilising characteristic —
high leverage ratios (Wade and Veneroso 1998), which leave enterprises vulnerable to changes in the macro settings, particularly interest ra
high leverage ratios (Wade and Veneroso 1998), which leave enterprises vulnerable to changes in the macro settings, particularly interest
rates.
High interest rates in the defence of the exchange rate were more damaging to these vulnerable economies because of their high corporate lever
High interest
rates in the defence of the exchange
rate were more damaging to these vulnerable economies because of their
high corporate lever
high corporate
leverage.
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 offering.
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.
a margin ranging from 3.25 % to 3.75 % or (b) a margin ranging from 2.25 % to 2.75 % plus the
highest of (i) the federal funds
rate plus 0.5 %, (ii) the prime
rate, or (iii) one month LIBOR plus 1.0 %, with the applicable margin depending on certain factors relating to an initial public offering with gross proceeds of not less than $ 300 million and on Desert Newco's
leverage ratio.
And thirdly, of course,
higher leverage means that monetary policy's impact via its effect on the behaviour of borrowers will be bigger than in the past — especially in a country like Australia where the majority of household debt is at floating
rates.
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 offering.
When times are good, sales ticking
higher, margins expanding and cash flows strong, only the advantages of
leverage are visible -
higher returns on equity, faster growth
rates and an enhanced benefit to stock holders as debt is repaid.
[eg debt, fraud, disruption, obsolescence, operating
leverage,
high valuation, sovereign risk, regulatory risk, patent / lawsuit loss, closed credit markets, systems failure, natural hazards, commodity price collapse / spike, debt re-financing, large risky acquisition, derivative / FX / interest
rate risks, project risks, contract loss, brand damage etc].
The corporate borrowing binge that started in 2009 has pushed
leverage to a 12 - year
high for BB -
rated companies and to levels not seen since 1999 for the single - B world, UBS reports.
It offers highly intuitive trading platforms, several types of cryptocurrencies offering the
highest leverages in the trading market, along with the
high premium
rates which could be charged on some overnight positions.
In theory, the
higher your credit score, the more lenders will fight for your business, and the more
leverage you may have in negotiating a lower interest
rate.
-- 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.
But from the perspective of monetary policy transmission, the
higher level of private sector
leverage also does imply a stronger impact from interest
rate changes.
We were concerned with the
high leverage, the aggressive rollup strategy, governance issues and long - term growth
rate assumptions amongst other things.
If we were to exclude the less
leveraged information technology sector, it would already appear considerably
higher, and by
ratings bucket, nearly all investment - grade segments have been participating in this borrowing binge.
Profits after interest have tended to decline over the past couple of years, reflecting the impact of the 1994 interest
rate increases and a tendency for corporate
leverage to increase, but they remain at
high levels compared with historical averages; they can be expected to receive a further modest boost as interest -
rate reductions in the second half of last year begin to feed through into profit results.
Other risks and uncertainties relate to NXRT's business, its industry and its common shares and include: investment risk; changes in interest
rates; risks associated with investing in
high multifamily properties; risks associated with NXRT's use of
leverage; and market risks generally.
«AbbVie's Baa1
rating reflects the blockbuster success of Humira and the product's good growth outlook, offset by
higher leverage and greater product concentration risk than pharmaceutical peers,» says Michael Levesque, analyst at Moody's Investors Service.
He said interest
rates of 18 per cent and
higher in the late 1980s that brought the highly
leveraged Adelaide Steamship empire down were ultimately too hard to manage.
Although the former president admitted that African leaders could
leverage the
high population in the region to grow the economy, he warned against a population growth
rate that could outstrip food production, which he warned would be catastrophic
«But at the same time, they will be able to
leverage a certain amount of social data — what's being shared, what's being viewed — and there is a possibility that they'll get a
higher adoption
rate because it's within Facebook.»
These short bursts of optimal loading also provide a
high - intensity workout, stimulating the cardiovascular system, and
leveraging the benefits referenced by Dr Doug McGuff, «The low resting heart
rate and others markers for good health are not really something that's happened in the cardiovascular system, but because the energy producing part of the body like the mitochondria, and all the enzymes involved in the production of energy, are upregulated (due to quality of mechanical work with muscle) and become more powerful and efficient.
Leveraging donations from businesses and foundations, along with district funding, it manages a number of L.A. schools where test results were poorest, dropout
rates highest, suspensions rampant and parents dissatisfied.
Through relentless focus on student achievement, instilling a culture of success and college readiness, and
leveraging instructional technology, Fannin County
High School has increased its graduation
rate by 25.2 %.
In California, the new funding structure is intended to
leverage education dollars for
high - need students, who lag behind on performance measures such as graduation
rates, standardized test scores, attendance, preparation for four - year colleges and participation in Advanced Placement classes.
The second essay
leverages the recent implementation of CR options in North Carolina
high schools for a difference - in - differences approach to explore the impact of adding CR options at the school level on graduation and dropout
rates.
With the leadership of presidents and trustees, community colleges can
leverage the
higher expectations in K — 12 to improve the preparation and success
rates of incoming students.
Using
higher volume blends of ethanol to
leverage the alcohol's inherent
high octane
rating to produce ethanol - gasoline blends with
higher octane numbers could yield «substantial societal benefits», according to a team of researchers from Ford Motor Company.
«As interest
rates increase, if they go too
high, the
higher debt - to - equity ratios and
leverage will have a negative effect on cash flows.»
The regulators haven't done well in setting up
rating agencies of their own, so let the
rating agencies continue on, but let the regulators be smarter in how they set the capital levels (
higher for structured products than for corporates and munis, because of loss severity
leverage), and what they allow regulated entities to invest in.
Continuously declining long - term
rates created two tailwinds for his portfolio: 1) It continuously reduced borrowing costs for highly
leveraged companies; and 2) Drove up values of
high yielding stocks (look at what utilities, MLPs and REITs have done over the same time period).
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.
In a different environment, or for financially secure companies, is it ever a good idea to make a
leveraged buy of
higher yielding bonds, where the bond sells at a discount and the coupon is greater than the margin interest
rate?
Additionally, credit
rating agencies look carefully at a companies
leverage ratio when deciding what
rating to give a company, lower credit
ratings mean companies will need to pay
higher interest
rates to borrow money.
If you're lucky enough to be paying historically low
rates (as I am on my mortgage) and getting good returns on the investments so the latter is the
higher percentage, the balance goes the other way and you'd want to continue paying off the debt relatively slowly — essentially treating it as a
leveraged investment.
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.
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 ra
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 ra
High Yield's duration of 4.86 %, the weekly reviewed
leverage loan index will be least effected to the change in
rates.
Ultimately this whole idea boils down to using
leverage, which in my mind only makes sense in a shorter term deal (to take advantage of the low
rate for one year), for possibly very
high returns.
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.
«We ascribe the
higher levels of delinquencies in the 2006 vintage to the increasingly riskier credit profile of borrowers, characterized by an increasing proportion of highly
leveraged homeowners who obtained their loans through limited verification of income sources and with little equity in their homes,» the
rating agency said.
Leveraging an «A» -
rated index by 10 times would still be less volatile than taking an unleveraged position to
high yield credits, or to stocks, he said.
However,
high yielding stocks are a VERY crowded trade because the Central Banks have kept interest
rates low, probably in large part to facilitate servicing of the national debts and to allow the investment banks to recapitalize and at least partially recoup their bad
leveraged bets.