Sentences with phrase «leveraged loan risk»

Investors are compensated nicely for leveraged loan risk while enjoying higher - returns as rates inevitably rise from historic lows.

Not exact matches

Typically, these businesses describe their loans as faster and more readily available to customers than bank loans, because they leverage technology to evaluate risk on a number of factors, as opposed to relying solely on credit scores.

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.

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

What we're seeing here — make no mistake about it — is not a rational, justified, quantifiable response to lower interest rates, but rather a historic compression of risk premiums across every risky asset class, particularly equities, leveraged loans, and junk bonds.

The risks associated with purchasing the mid-size leveraged loan business are not as pronounced as some would suggest, in part because the size of the loans are relatively small and not concentrated with any one company, he said.

During his time at Bank of America he held a variety of leadership positions including Managing Director - GWIM Market Risk Executive, Managing Director - Head of US Loan Syndications, and Managing Director — Head of US Loan Syndicate / Leverage Loan Syndicate.

CIF was established in 2008, as one of the largest fast - tracked climate financing instruments in the world, with $ 8.3 - billion funding to provide developing countries with grants, concessional loans, risk mitigation instruments, and equity that leverage significant financing from the private sector, Multinational Development Bank's (MDBs) and other sources.

However, you also need to put your property at risk and those without property to leverage can not qualify for these loans.

Although the bond market is also volatile, lower - quality debt securities including leveraged loans generally offer higher yields compared to investment grade securities, but also involve greater risk of default or price changes.

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.

Market sentiment can change quickly though and if news from the FOMC does undermine the current risk - on environment; leveraged loans could be the least volatile in price.

This works because the applicant takes on considerably more risk by way of leverage than with the SM, gains far greater tax returns at an early stage, and apparently maintains the tax refund by the rapid increase of the HELOC, as the Investment loan is converted or reduced.

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.

Comerica (CMA - WT) warrants have much less exposure to foreclosuregate than other major banks (They are heavy into commercial loans which will benefit from Fed printing, and the warrants offer an opportunity to play CMA on a leveraged basis, while limiting risk.

Leveraged buyout loans are subject to greater credit risks than other investments, including a greater possibility that the borrower may default or enter bankruptcy and may be «covenant lite» loans, which do not include terms that allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached.

Generally speaking, the appeal of leveraged loans in a rising rate environment is the floating nature of coupons — as interest rates increase, the base rate (typically 30 - 90 day LIBOR) also increases, providing market participants with a way to minimize interest rate risk while also generating extra income.

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

All in all, in a market where banks have only recently returned to issue new leveraged loans, investors are poised to pick up the slack and achieve returns greater than a similar maturity mix of corporate bonds with less intermediate risk.

REITs are leveraged using short term loans and only partly hedged against interest rate risk.

Franchise fee revenue could provide a loan loss reserve for an energy efficiency financing program like PACE, leveraging millions of dollars in private, low - risk loans for improving the energy use of local properties.

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Lower leverage and higher spreads associated with transitional loans, combined with favorable occupancy trends in transitional properties, point to a potentially attractive risk - reward opportunity in transitional lending for institutional investors.

Panelists also said they are seeing cases of «leverage on leverage» with mezzanine loans, but it's still difficult to achieve given the increased risk awareness and discipline underwriters are displaying post Dodd - Frank.

Some life companies will choose not to lend in tertiary markets given the default risk is higher with the smaller population levels, yet many life companies see tertiary markets as a place to obtain lower leverage loans and higher interest rates.

A rise in broadcast and media (B&M) leveraged loan defaults should not have a negative effect on the U.S. CLOs we rate as they have low levels of exposure to only a few of the issuers with the highest risks of default, Fitch Ratings says.

Notwithstanding these caveats, though, the fact remains that all else being equal, traditional amortizing mortgages introduce additional sequence risks to the household leverage scenario (above and beyond just the risk that the portfolio fails to outperform the loan) that reverse mortgages alleviate, which should make reverse mortgages especially appealing for retirees who believe it's worth the risk of maintaining a mortgage and a portfolio side by side in retirement.