Not exact matches
In fact, some experts peg student
loan investments as one of the more
risky options.
Consequently, your ability to pay back a
loan will appear less likely, causing the bank to view you
as a
risky investment and possibly retract your
loan application.
The regulator adds that Ameriprise fired Mata in March 2009 for violating company policies by recommending that clients «take out
risky loans to finance
investments, presenting unapproved seminars, employing individuals without conducting proper background checks and operating SCI
as a competing
investment company.»
The charlatans selling off instruments composed of
risky home
loans pulled a fast one, leaving Uncle Sam
as guarantor holding the bag - while they walked away holding the money from the sales of the
investment instruments.
Consumers with high credit scores, 760 or above, are considered to be prime
loan applicants and can be approved for interest rates
as low
as 2 or 3 %, while those with lower scores are
riskier investments for lenders and generally pay higher interest rates.
Yes you might come out ahead, but if your
risky investments fall (or don't rise
as much
as the
loan interest rate) then you'll be worse off.
The problem with the current system is that the originators of mortgages have been able to offload a large part of their risk onto unsuspecting investors, in some cases by bundling less desirable
riskier loans together with solid projects and selling the whole thing
as a safe
investment.
Investors see your business
as a
risky investment that could falter under the pressure of a short - term
loan.
These
loans come cheap only because lenders deem them less of a
risky investment Private lenders like issuing
loans as registered mortgages
as protection from the high risk posed by some borrowers.
This means in order to achieve an adequate return on a fixed income portfolio today we would have to mix in
riskier investments such
as non-investment grade bonds and other higher risk
loans.