Sentences with phrase «investments than the interest rate»

If you borrow now to invest, the key becomes earning a higher rate of return on your investments than the interest rate you're paying on the line of credit.

We also have a low interest loan on a car that we haven't paid off since we can get a higher yield on our investments than the interest rate on the loan.

Not exact matches

Private equity returns remained strong but were lower than the prior year quarter, while income from our fixed income investment portfolio increased due to a higher average level of fixed maturity investments and higher short - term interest rates.

In a zero - interest rate world (Figure 7), these provide yields that are much higher than those found in more conventional investments like U.S. Treasury bonds or money market accounts.

The «search for yield», i.e. for better return on financial investments than the declining interest rate, thus led to the series of bubbles & bursts: deregulated savings & loans (immediately), high - tech stocks (late 90's), mortgage derivatives — > house prices (2000's).

All else equal, unless it possesses some sort of major offsetting advantage that makes the risk of non-payment low, a company with a low - interest coverage ratio will almost assuredly have bad bond ratings, increasing the cost of capital; e.g., its bonds will be classified as junk bonds rather than investment grade bonds.

Investment grade bonds are considered to be lower risk and, therefore, generally pay lower interest rates than non-investment grade bonds, though some are more highly rated than others within the category.

If there exist underfunded investments that generate a return higher than the rate of interest, the surplus on the capital account can be put to good, productive use.

This means that most of its savings accounts below grow according to the various investments within the account, rather than a set interest rate.

These HISAs typically pay much higher interest rate than money market funds and are ideal for the cash balance in your Registered Retirement Savings Plan (RRSP), Tax - Free Savings Account (TFSA) and investment accounts.

The low interest rate environment may also have encouraged a shift in investments towards hedge funds as, in the past, hedge funds have achieved higher average returns than traditionally managed investments, albeit in exchange for greater risk.

These bonds are considered risky investments and tend to pay higher interest rates than Investment grade debt.

Because bondholders receive a fixed interest rate and get paid before stockholders, bonds are safer investments than stocks.

This was largely a function of the coincidence of high real interest rates and high asset price inflation over much of the period — more so, perhaps, than the exercise of exceptional investment skills as such.

She continues, «Mot consumer debt carries a higher interest rate than most investment products these days.

Investing in currency involves additional special risks such as credit, interest rate fluctuations, derivative investment risk, and domestic and foreign inflation rates, which can be volatile and may be less liquid than other securities and more sensitive to the effect of varied economic conditions.

Mortgages currently remain at historically low rates, usually with an interest rate that's less than what you could average in retirement or investment accounts.

Second, 0 % interest rates and excess liquidity from Quantitative Easing made it attractive for companies to grow their earnings per share via share buybacks and acquisitions rather than the riskier investment approach.

Like most bond investors, we are concerned about rising interest rates and tax reform, but rather than waiting for higher rates we continue moving ahead anticipating higher rates by tilting the investments toward short and / or intermediate maturities.

Earn a competitive interest rate and enjoy greater flexibility than with a longer - term investment.

Again, there are a variety of ways to refine this result, but note that anytime the total return on the S&P 500 is less than risk - free interest rates, a hedged investment position increases overall returns (since hedging instruments are priced to include implied interest).

Companies that hold passive investments can generally borrow funds at lower interest rates than would otherwise be the case.

This is not unlike the dilemma facing many retirees and other individual investors: holding ultra-safe interest - bearing investments is wise past a certain age; yet when yields are lower than the inflation rate, this strategy erodes buying power and undermines long - term financial security.

As an investor's investment horizon lengthens, however, a diversified portfolio of U.S. equities becomes progressively less risky than bonds, assuming that the stocks are purchased at a sensible multiple of earnings relative to then - prevailing interest rates.

Business investment decisions are based on more than interest rates, including net present value factors

The primary attraction for investors is that lower rated borrowers pay a higher rate of interest than investment grade borrowers, so bank loan funds and ETFs typically offer a higher dividend yield.

If the investment give you more than 3 % interest rate your net worth will be positively affect if you invest the money rather than paying of your debt.

Investors must face a worse interest rate environment than when they made the original investment.

This is due to the fact that it s possible to get a return on investment that is higher than the lower interest rate and investing the money thereby has a positive effect on your net worth.

Think of it like this, if you have a loan with an interest rate of 3 %, but you have stock market investments that continually return at 7 %, it is more profitable to maintain some level of investment rather than pay down all your debt in a sprint.

Such statements reflect the current views of Barnes & Noble with respect to future events, the outcome of which is subject to certain risks, including, among others, the general economic environment and consumer spending patterns, decreased consumer demand for Barnes & Noble's products, low growth or declining sales and net income due to various factors, possible disruptions in Barnes & Noble's computer systems, telephone systems or supply chain, possible risks associated with data privacy, information security and intellectual property, possible work stoppages or increases in labor costs, possible increases in shipping rates or interruptions in shipping service, effects of competition, possible risks that inventory in channels of distribution may be larger than able to be sold, possible risks associated with changes in the strategic direction of the device business, including possible reduction in sales of content, accessories and other merchandise and other adverse financial impacts, possible risk that component parts will be rendered obsolete or otherwise not be able to be effectively utilized in devices to be sold, possible risk that financial and operational forecasts and projections are not achieved, possible risk that returns from consumers or channels of distribution may be greater than estimated, the risk that digital sales growth is less than expectations and the risk that it does not exceed the rate of investment spend, higher - than - anticipated store closing or relocation costs, higher interest rates, the performance of Barnes & Noble's online, digital and other initiatives, the success of Barnes & Noble's strategic investments, unanticipated increases in merchandise, component or occupancy costs, unanticipated adverse litigation results or effects, product and component shortages, the potential adverse impact on the Company's businesses resulting from the Company's prior reviews of strategic alternatives and the potential separation of the Company's businesses, the risk that the transactions with Microsoft and Pearson do not achieve the expected benefits for the parties or impose costs on the Company in excess of what the Company anticipates, including the risk that NOOK Media's applications are not commercially successful or that the expected distribution of those applications is not achieved, risks associated with the international expansion contemplated by the relationship with Microsoft, including that it is not successful or is delayed, the risk that NOOK Media is not able to perform its obligations under the Microsoft and Pearson commercial agreements and the consequences thereof, risks associated with the restatement contained in, the delayed filing of, and the material weakness in internal controls described in Barnes & Noble's Annual Report on Form 10 - K for the fiscal year ended April 27, 2013, risks associated with the SEC investigation disclosed in the quarterly report on Form 10 - Q for the fiscal quarter ended October 26, 2013, risks associated with the ongoing efforts to rationalize the NOOK business and the expected costs and benefits of such efforts and associated risks and other factors which may be outside of Barnes & Noble's control, including those factors discussed in detail in Item 1A, «Risk Factors,» in Barnes & Noble's Annual Report on Form 10 - K for the fiscal year ended April 27, 2013, and in Barnes & Noble's other filings made hereafter from time to time with the SEC.

Such statements reflect the current views of Barnes & Noble with respect to future events, the outcome of which is subject to certain risks, including, among others, the effect of the proposed separation of NOOK Media, the general economic environment and consumer spending patterns, decreased consumer demand for Barnes & Noble's products, low growth or declining sales and net income due to various factors, possible disruptions in Barnes & Noble's computer systems, telephone systems or supply chain, possible risks associated with data privacy, information security and intellectual property, possible work stoppages or increases in labor costs, possible increases in shipping rates or interruptions in shipping service, effects of competition, possible risks that inventory in channels of distribution may be larger than able to be sold, possible risks associated with changes in the strategic direction of the device business, including possible reduction in sales of content, accessories and other merchandise and other adverse financial impacts, possible risk that component parts will be rendered obsolete or otherwise not be able to be effectively utilized in devices to be sold, possible risk that financial and operational forecasts and projections are not achieved, possible risk that returns from consumers or channels of distribution may be greater than estimated, the risk that digital sales growth is less than expectations and the risk that it does not exceed the rate of investment spend, higher - than - anticipated store closing or relocation costs, higher interest rates, the performance of Barnes & Noble's online, digital and other initiatives, the success of Barnes & Noble's strategic investments, unanticipated increases in merchandise, component or occupancy costs, unanticipated adverse litigation results or effects, product and component shortages, risks associated with the commercial agreement with Samsung, the potential adverse impact on the Company's businesses resulting from the Company's prior reviews of strategic alternatives and the potential separation of the Company's businesses (including with respect to the timing of the completion thereof), the risk that the transactions with Pearson and Samsung do not achieve the expected benefits for the parties or impose costs on the Company in excess of what the Company anticipates, including the risk that NOOK Media's applications are not commercially successful or that the expected distribution of those applications is not achieved, risks associated with the international expansion previously undertaken, including any risks associated with a reduction of international operations following termination of the Microsoft commercial agreement, the risk that NOOK Media is not able to perform its obligations under the Pearson and Samsung commercial agreements and the consequences thereof, the risks associated with the termination of Microsoft commercial agreement, including potential customer losses, risks associated with the restatement contained in, the delayed filing of, and the material weakness in internal controls described in Barnes & Noble's Annual Report on Form 10 - K for the fiscal year ended April 27, 2013, risks associated with the SEC investigation disclosed in the quarterly report on Form 10 - Q for the fiscal quarter ended October 26, 2013, risks associated with the ongoing efforts to rationalize the NOOK business and the expected costs and benefits of such efforts and associated risks and other factors which may be outside of Barnes & Noble's control, including those factors discussed in detail in Item 1A, «Risk Factors,» in Barnes & Noble's Annual Report on Form 10 - K for the fiscal year ended May 3, 2014, and in Barnes & Noble's other filings made hereafter from time to time with the SEC.

The company's higher - than - average exposure to equities and its high combined ratio make the company a mediocre choice for an investment hedge against rising interest rates.

High - yield bonds (also known as «junk bonds») may be subject to greater levels of interest rate, credit, and liquidity risk than investments in higher rated securities.

The allocation decision between interest rate and credit exposure may have a significantly larger impact on the investment outcome than would any security - specific decisions.

Second mortgages are an example of high - risk investments which attract higher interest rates and fees than ordinary bank loans.

Debt funds invest in fixed income instruments such as Corporate and Government bonds, are lower - risk investment options for those looking for better interest rates than their bank's savings accounts / fixed deposits.

This means you will have to find other sources of funds and then place the cash in investment instruments that potentially offer higher returns than the interest rate of your debts.

If you have a higher interest loan, like a private student loan which can be as high as 12 percent, the interest rate you pay is greater than the return you could expect on an investment.

Non-retirement investment accounts are a good way to save for other future goals like a home mortgage down payment or to simply get a higher yield on your savings than the near - zero interest rates most banks pay.

Interest rates in these countries are at least 4 % higher than in the U.S. or Europe and the credit quality of most of these countries is investment grade, plus the holdings of the larger ETFs are so widely distributed that unless one had a major financial crisis, similar to the Asian crisis in 1995 or the financial meltdown in 2008, one's investment should weather most isolated storms.

President - elect Donald Trump will soon celebrate his inauguration and with his ascent to power, he has promised to reduce marginal tax rates, cut taxes, and allow businesses to expense new investments rather than deducting interest costs.

Investment by the Funds in lower - rated and non-rated securities presents a greater risk of loss to principal and interest than higher - rated securities.

Lenders providing bad credit mortgages charge greater interest rates than banks due to the risks inherent in this type of investment.

Lenders providing bad credit mortgages will charge larger interest rates than banks since a bad credit mortgage is a risky investment.

Specially, when the mutual fund investments are enjoying higher than normal returns pushed by a bull market 9for equity) and falling interest rates and thus higher returns (for debt funds).

It makes your investment grow at a faster rate than simple interest, which is interest earned only on your original investment.

The examples used here assume that the rate of return on investments will be greater than the interest rate paid on a home mortgage.

With this on - going recession and low bank interest rates, I would rather pay my house which I have rented out than put my money in risky investments.

As there are risks with virtually any investment, there can be no assurance that you will achieve returns greater than the interest rate on your home mortgage.