Sentences with phrase «junk debt»
The phrase "junk debt" refers to bonds or loans that have a high risk of not being repaid. It typically refers to debts issued by companies with low credit ratings. These companies have a higher chance of defaulting on their payment obligations, thus considered riskier investments. Full definition
Usually, these accounts are purchased by junk debt buyer for pennies on the dollar from the original lender who wrote off the debt as a loss and tax deduction.
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Additionally, the bill will waive special deduction limitations for junk debt issued this year.
I continue to favor investment grade income (25 %) over a speculative reach for yield in junk debt.
The largest group of debt collections abuses come from junk debt buyers.
Second, look at stock market indexes of industries that lever up and issue junk debt.
I read that credit card debt can not be collected by junk debt buyers.
You see this frequently with junk debt buyers that pay pennies on the dollar for accounts that other collectors have given up on.
There are many more junk debt buyers in the industry though.
Since junk debt buyers generally pay so little for the debts, you probably have the biggest opportunity to settle for less once they've bought your debt.
As a result, many bond funds have junk debt mixed in their portfolio to juice up their yield to attract retail investors.
The market for junk debt is growing faster than anyone could participate.
The problem with junk debt is that there is little or no liquidity because few investors want to take on the risk of default or of a missed payment.
Third - party collectors often have guidelines from the creditor or junk debt buyer on how much they're allowed to settle the account for.
Most junk closed - end funds are at a premium, which means that there is an incentive to sell more junk debt.
This boom in junk debt has drawn concern that a correction to the downside may be looming.
To a very large degree, Wall Street firms are trading stocks in their own unregulated stock exchanges called dark pools, or they're lending vast sums of money to hedge funds for wild gambles, or they're making loans to highly leveraged companies to become more highly - leveraged by buying out other companies — which will likely mean lots of job cuts rather than job creation along with piles of junk debt.
There are a lot of players out there, like junk debt buyers, who buy and sell debts and place them into million dollar packages to sell on Wall Street.
Investors demanded the most extra yield in almost a month to buy junk debt, according to a Bloomberg Barclays index fixed late Wednesday.
As reported in the Wall Street Journal, the country's largest junk debt buyer and parent of Midland Credit Management, Encore Capital Group, had a business plan of not pursuing any credit card lawsuit filed on its behalf that was answered.
If you have been served with a law suit by a debt collector like Portfolio Recovery Associates, Midland Funding, Cortez Investment, CACH, Cavalry SPV, or any of the other junk debt buyers we can assist you in determining the strength of your case and what is necessary to prevail in court in a free telephonic consultation.
One final note, and one that I don't have a link for... Moody's suggested in a macroeconomic note that yield spreads on junk debt are too high for the FOMC to tighten much.
The credit card banks are doing this because in recent years junk debt buyers (JDBs) took to blanketing consumers who had long overdue credit card debt with lawsuits.
In this New York Times feature article, here is an in - depth look at just how sleazy credit card debt junk debt... [Read more...]
As individual investors tend to be long - only, the best time to buy high - beta stocks and ETFs like undiversified equity funds or high - yield junk debt is when the put - call ratio peaks.
WeWork took a gamble with its debut junk debt offering.
The company issued junk debt earlier this year at 5.35 %, issues which still yield more than 300 basis points more than comparable U.S. Treasuries.
Creditors may push for higher settlements, while junk debt buyers may accept just a small percentage of the outstanding balance.
Many small to midsized energy companies, such as Midstates Petroleum, SandRidge Energy, Goodrich Petroleum, and Patriot Coal, were highly levered, having fueled their growth with piles of fresh junk debt in the early 2010s.
Underwriting volume this year for high - yield securities, known widely on Wall Street as junk debt, has sunk at firms such as Merrill Lynch, Citigroup, Lehman Brothers and JPMorgan Chase, adding more salt to the wounds already inflicted by massive losses on souring mortgage securities.
12) On page 74, the allocations to junk debt seems too high, though I might make that bet as well.
Since there is no record left of the transactions, the debtors can often be left at the mercies of relentless junk debt collections agents who cant testify with uncanny assurances that you still owe the debt, and they can do it often.
Going back a few years ago junk debt buyers (JDBs) discovered they could successfully churn out large numbers of lawsuits based on their bulk purchases of credit card debt.
Our office has defended more consumers against junk debt buyers then any other law firm in Arizona.
Leading investments in 2013 are concentrated in anything yield (from junk debt to utilities) and low volatility consumer staples.
Collection agencies work for the original creditors, the credit card banks, and for junk debt buyers who buy your debt from the banks.
In the past few years fraudulent documentation of credit card debt by junk debt buyers and their collection attorneys for the purposes of winning court judgments against credit card debtors has been brought to light by the Wall Street Journal, Baltimore Sun and other publications.
In addition to the California Attorney General, the Minnesota Attorney General successfully sued Midland Funding, a large junk debt buyer, for improper «robo - signed» credit - card - debt affidavits.
Have you been sued by a debt collector like Midland Funding, Portfolio Recovery, CACH, Cavalry SPV, or any of the other junk debt buyers?
And nearly three - quarters of the fund is Standard & Poor's BBB - equivalent or better (read: investment - grade), so LEMB isn't going all - in on junk debt to prop up its high yield.
On the subject of junk debt, in the first two quarters of 2014, European high yield bond issuance outstripped U.S. issuance for the first time in history, with 77 % of the total represented by Greece, Ireland, Italy, Portugal, and Spain.
What applies to corporate debt — long term buy and hold investors do okay with investment grade debt, but less well with junk debt, and worse the junkier it gets.
Junk corporate debt is a milder version of junk stocks, i.e., the stocks that issue junk debt.
Of course, this was an era where investing in junk debt was not respectable for all but the most intrepid of investors.
Junk debt buyers like Midland Funding, Portfolio Recovery Associates, Cavalry SPV, CACH, LLC — and dozens of other companies file thousands of lawsuits each and every month in Arizona.
Investments rated below investment grade are commonly referred to as high - yield, high risk or «junk debt.»
The real enablers of PE companies are Wall Street and the pension funds who buy the junk debt that allows leveraged buy - outs.
In the case of the last crisis, yields went over 20 % on junk debt and even high - grade credits like Comcast and Nordstrom's were yielding in the low teens.
As long as investors aren't too concerned about the risk of capital losses - that is, as long as investors are in a risk - seeking mood (Iron Law of Speculation), a mountain of zero - interest hot potatoes will also embolden investors to chase yield further out on the risk spectrum, for example, in junk debt, stocks and mortgage securities.
Junk debt was pummeled to a crisis degree starting in late 2014.