Sentences with phrase «higher default risk»

Despite the downgrade of U.S. government debt by Standard & Poor's that occurred in 2011, the market still assigns a higher default risk to corporations over the U.S. government.

Creditors typically want a higher interest rate to compensate for bearing higher default risk.

Therefore, such bonds pay a lower interest rate, or yield, than bonds issued by less - established companies with uncertain profitability and relatively higher default risk.

Ratings of this quality are given to governments and corporations perceived to have higher default risk.

The higher default risk is the chief reason that speculative - grade bond issuers have to pay higher interest rates that go hand - in - hand with the so - called credit migration risk (or credit rating risk), which is part of the credit risk by extension.

Buyers with poor credit scores often need a larger down payment to offset the higher default risk.

Junk bonds carry higher default risk and are thus far more sensitive to the health of the economy than investment - grade bonds.

On the other hand, floating rate loans tend to be lower - quality bonds with higher default risk.

Someone with a high default risk is unlikely to be very profitable.

High - yield, lower - rated («junk») bonds generally have greater price swings and higher default risks.

Once 20 % of the principal balance of a loan is paid off, or a borrower owns 20 % of the equity of their home, borrowers are no longer considered a high default risk and can request that the mortgage insurance policy be cancelled.

Bond issuers tend to offer higher interest rates and coupons to offset their higher default risks.

With corporate bonds, you can moderate some of the higher default risks by investing in corporate bond funds, rather than trying to select individual and potentially more risky individual corporate bonds.

The lower the default risk, the lower the required interest rate; higher default risks come with higher interest rates.

Once 20 % of the principal balance of a loan is paid off, or a borrower owns 20 % of the equity of their home, borrowers are no longer considered a high default risk and can request that the mortgage insurance policy be cancelled.

The high - tech firms and start - ups are perceived as having a high default risk.

Who are these lenders willing to make FHA loans that carry high default risk?

Not exact matches

The big fear has always been the higher risk of default.

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.

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.

Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up of production of our new products, and our entry into new business channels different from those in which we have historically operated; the risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments; risks resulting from the concentration of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits of the transaction; the risk that retail customers may alter promotional pricing, increase promotion of a competitor's products over our products or reduce their inventory levels, all of which could negatively affect product demand; the risk that our investments may experience periods of significant stock price volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.

If the homeowner defaults on his or her payments and the lender faces a loss following foreclosure, mortgage insurance covers the difference and turns a high - risk customer into a zero - risk customer.

High yield / non-investment-grade bonds involve greater price volatility and risk of default than investment - grade bonds.

High yield fixed income securities are considered speculative, involve greater risk of default, and tend to be more volatile than investment grade fixed income securities.

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.

If it is mainly the highest - risk borrowers who take advantage of higher limits, or if the higher limits encourage more reckless borrowing in general, then default rates will climb, eating away at profit margins.

Lenders take many steps to make sure you're not a high risk of potential default — or involved in nefarious activity.

Comparing our opportunity to Japan's, isn't our sovereign credit risk much higher than Japan's in terms of per capita GDP growth, structural balance - of - payments deficit, history of default and history of inflation?

• Lower - quality debt securities generally offer higher yields but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

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.

Investing in higher - yielding, lower - rated, floating - rate loans and debt securities involves greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.

Advice: Because bonds with longer maturity face greater risk of changing interest rates (and greater default risk, as well), they typically pay higher interest rates.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradeDefault risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradedefault on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

Greater business and industry risk (which should be reduced through diversification), since the chance of default is higher.

Business cycle risk High yield issuers typically have riskier business strategies and more leveraged balance sheets, exposing them to greater risk of default at times of a downturn in business conditions.

Central banks may forestall these defaults by pumping even more money into the economy — at the risk of higher inflation in coming years.

Because credit and default risk are the dominant drivers of valuations of high yield bonds, changes in market interest rates are relatively less important.

Often offer higher yields, but carry currency and default risk.

However, diversification among high - grade corporate and municipal issuers can substantially reduce default risk among issuers.

Buffett notes, for example, that late in a boom, the experience of corporate defaults and lawsuits is generally very low, but this can often be the time when exposure to such risk is the highest.

The higher the risk of a default or late payment, the higher the interest rate will be.

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.

Risks of high yield securities include greater price volatility, illiquidity and possibility of default.

They must compensate investors for their higher risk of default.

It presumes that you are capable of doing the necessary research and due diligence to select individual bonds; that you have a significant risk appetite; that you are willing to incur significant price volatility; and that you are comfortable with the high likelihood of owning at least some bonds which will default.

If you're maxing out your credit cards, or carry high balances, then you could carry a higher risk for default, or simply be viewed as an irresponsible spender in the eyes of a lender.

Over the entire century, high - grade corporate bonds offered an incremental 0.5 % of compounded return as a default risk premium.

Further, with junk grade defaults at negligible levels today, even higher risk bonds have not posed significant problems — although that does not always have to be the case.

Invest in high enough quality bonds and the risk of default is next to zero.

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).