There was plenty of «stupid money» and bad commercial real estate loans with incredibly
high leverage ratios and weak underlying assets that should have never been made.
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 rates.
Our contention remains that to have a single
high leverage ratio that applies to all institutions, systemic banks and new and existing challengers like building societies alike, misses the point.
Leverage ratios depend somewhat on what industry a company is in, a company with high infrastructure expenses and steady cash flows such as a utility company would be able to support
a higher leverage ratio than one with unstable cash flows.
Higher leverage ratios are bad, and often indicate a company is heading towards financial difficulties.
Unlike other brokers, we provide one of
the highest leverage ratios in the forex industry, up to 1:1000.
Trading with
higher leverage ratios may not be suitable for all type of traders and may be too risky for some.
Again,
higher leverage ratios may not be suitable for every trading style.
The retailer has one of
the highest leverage ratios in the industry, with debt exceeding 19 times adjusted earnings, according to Moody's Investors Service.
Not exact matches
LONDON (Reuters)- The world's top 30 banks face a
higher minimum requirement for their broadest measure of capital, global regulators said on Monday as they flagged a two - tier
leverage ratio regime for the first time.
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.
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.
Since the December FOMC Meeting that sparked the next leg lower in the dollar, the Euro has averaged about a 4:3
Leveraged net - long
ratio and reached a
high of 5:2 while also reaching a record long position that had 77,000 more longs than shorts.
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.
AB Inv is heavily
leveraged, growth is sluggish and payout
ratio (too)
high.
A
high ratio indicates that a company is highly
leveraged and may be a risky investment.
Banks are now forced to create and hide
leverage off balance sheet (e. g. new «synthetic CDO» frauds and
leveraged buyouts (LBOs) with outrageously
high EBITDA
ratios) in order to generate returns sufficient to pay employees when that is not available in the spreads associated with well - balanced bond sales.
The
higher the
ratio, the more
leverage the company is using and the more risk it is assuming.
The inverse of this
ratio, the bank
leverage measure mentioned earlier, was regarded as the best available indicator of bank riskiness: the
higher the
leverage, the riskier the bank.
Basel III introduced
higher requirements for capital adequacy
ratios, such as Tier 1 and Tier 2
ratios, and increased
leverage ratios.
Last but not least is STORE's fortress - like balance sheet, exemplified by its very low
leverage ratio (Debt / EBITDA) and one of the
highest interest coverage
ratios in the industry.
A recent study from megabank HSBC noted that, based on the
ratios of bank credit to GDP for the region, «
leverage is now
higher than at the peak before the Asian crisis in 1997.»
Note, however: there is still no definition of «
high speed Internet» (the governor pegs it at an ambitious 100 megabits per second, or maybe 25 mbps in some remote areas) or on the extent of required private investments required to
leverage the funds (Cuomo suggested the
ratio would be one private dollar per public dollar).
The engine
leverages the spectrum of Toyota's advanced engine technologies: Dual VVT - i with VVT - iE (Variable Valve Timing intelligent system by Electric motor); D - 4S (Direct injection 4 - stroke gasoline engine Superior version) direct injection and laser - clad valve seats; longer stroke (4.07 inches; bore remains at 3.44 inches) and
high compression
ratio (14:1); multi-hole direct fuel injectors; a variable cooling system; cooled Exhaust Gas Recirculation (EGR) system; and a full variable oil pump.
«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.»
As of Sept. 29, 2017, compared to the respective eligible universe, the S&P China A-Share Quality Portfolio exhibited strong tilts toward quality features (
high profit margin, low financial
leverage, and low accrual
ratio) and defensive features (low beta and low volatility) as expected.
The
higher the
ratio the more
leveraged the company and the greater the probability of adverse conditions affecting the dividend in a negative manner.
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.
What are the odds that a highly
leveraged business will have a
high book - to - market
ratio (book value / market value)?
In the credit markets, spreads on the
high yield securities are approaching historically tight levels, while key credit metrics such as
leverage and coverage
ratios are showing signs of weakening.
Last but not least is STORE's fortress - like balance sheet, exemplified by its very low
leverage ratio (Debt / EBITDA) and one of the
highest interest coverage
ratios in the industry.
AB Inv is heavily
leveraged, growth is sluggish and payout
ratio (too)
high.
During the recent debacle of some
high profile FX brokerages, I read some good articles that talked about FX brokers offering up to 1000:1
leverage ratios.
The firm's
leverage ratio isn't particularly
high compared to the big banks but it is
high enough for the firm to suffer from a liquidity crunch.
Overall, we are looking for reasonable payout
ratios, and
leverage metrics that are not too
high, as well as valuation metrics that are in - line with comparable companies.
When we do, we find a
leverage ratio (Debt / EBITDA) that's about three times smaller, a debt to capital
ratio that's less than half, and a very
high interest coverage
ratio, which helps to secure GD a very strong investment - grade credit rating.
The
higher the
ratio the more
leveraged the company and the greater the probability of adverse conditions affecting the company (or its dividend) in a negative manner.
A
higher ratio means that the company is using more
leverage, which could be a greater risk to its shareholders.
Thus, an A rated stock, according to S&P, is a
higher quality investment than a B + rated stock, and the ratings are based upon financial measures (such as profitability
ratios and financial
leverage).
Due to these characteristics,
leveraged mutual funds typically have
higher operating expenses as a percentage of assets compared to other funds, with a total management expense
ratio of typically 3 % to 5 % per year compared to 1.3 % to 1.5 % for a non-
leveraged mutual fund.
Leverage allows you to take a position of much
higher value than the monies deposited in your account and is commonly expressed as a
ratio.
The debt to equity
ratio identifies companies that are highly
leveraged and therefore a
higher risk for investors.
The
higher this
ratio, the more highly
leveraged the company.
This
ratio seems to be toward the
high end of where
leveraged funds usually are.
These instruments can be traded on the spot market or as CFDs with a
leverage ratio as
high as 400:1.
Further, I have a margin investment account as I negotiated a low interest rate (presently 2.1 %) for
leverage — which I can use to pay down my mortgage obviously, but I don't want my margin / equity
ratio too
high so I haven't.
Part of the reason that
leverage ratios can be so
high in the forex market is that forex trading positions have no net initial value.
The reason for this, she says, is the
leverage model of Canadian firms, which tend to have a partner - to - associate
ratio of 1:1 or 1:2, compared to other jurisdictions where the
ratio can be as
high as 1:4.
• Enhanced overall clientele
ratio by 60 % by effectively
leveraging the client referral base • Consistently demonstrated
high standards of styling services and customer care.
With this much
leverage, your Debt Coverage
Ratios can potentially get very thin, and multiplying this across an entire portfolio of properties financed in such a fashion, the risk is very
high that a confluence of issues with the economy / rents, large capital repairs,
high vacancies, etc., can bring down the house of cards and ruin your credit for a long time.