Wesfarmers has received a boost, with Moody's upgrading its issuer and senior unsecured
long term debt rating from Baa1 (positive) to A3 (stable).
Not exact matches
Moody's maintained Ontario's Aa2 issuer and Aa2 senior unsecured
long -
term debt ratings despite the change in outlook.
Even though our activities are likely to result in a lower national
debt over the
long term, I sometimes hear the complaint that the Federal Reserve is enabling bad fiscal policy by keeping interest
rates very low and thereby making it cheaper for the federal government to borrow.
Earlier this week
rating agency Standard and Poor's changed its U.S.
long -
term debt outlook to «stable» from «negative,» despite the concrete prospect of more showdowns on fiscal policy.
«We refinanced our
debt, de-leveraged our balance sheet and locked in
long -
term debt capital at current historically low
rates,» he said in the company's 2014 annual report.
You can refinance expensive
debt and trim thousands from your monthly budget by securing a
long -
term, low -
rate loan like the one you should've taken in the first place.
TORONTO — Fitch
Ratings downgraded Ontario's
long -
term debt rating Friday, highlighting «risks» on the path to the Liberal government's target of balancing the budget by 2017 - 18.
The amount of
debt that is projected under the extended baseline would reduce national saving and income in the
long term; increase the government's interest costs, putting more pressure on the rest of the budget; limit lawmakers» ability to respond to unforeseen events; and increase the likelihood of a fiscal crisis, an occurrence in which investors become unwilling to finance a government's borrowing unless they are compensated with very high interest
rates.
Progress in a few areas has been solid: slashing of bureaucratic red tape has led to a surge in new private businesses; full liberalization of interest
rates seems likely following the introduction of bank deposit insurance in May; Rmb 2 trillion (US$ 325 billion) of local government
debt is being sensibly restructured into
long -
term bonds; tighter environmental regulation and more stringent resource taxes have contributed to a surprising two - year decline in China's consumption of coal.
We add the
debt spread associated with the
debt rating on the company's
long -
term debt to the risk - free -
rate.
Ryan Avent pointed out that even if we enacted Trump's massive tax cuts and spending increaes, adding $ 34 trillion in new
debt over the next two decades, our ratio of
debt to GDP two decades from now would still be 30 percentage points less than Japan's government
debt ratio is right now... and the market is still buying their negative interest
rate long term debt...
This gain in credibility contributed to a rapid decline in
long -
term interest
rates, which in turn significantly reduced public
debt charges and contributed to stronger economic growth and government revenues.
The amount of
longer term Federal
debt that markets have to absorb is now as high as it has been in the last 50 years and
long rates are extraordinarily low, as are
term spreads.
They can also help you create a plan to get out of
debt by paying off your
debts, often at reduced interest
rates, through a
long -
term debt management plan (DMP).
Indeed, because the Trump proposal would redistribute after - tax income towards those most likely to save it, push up
long -
term interest
rates because of
debt pressures, increase uncertainty and the advantages of overseas production, it is as likely to retard growth as to accelerate it.
«This year's budget makes remarkable progress on reducing the
debt - to - GDP ratio, and announced focused investment in areas that are important to the
long -
term economic success of the province, while holding steady on already very competitive business and personal tax
rates.»
China is probably still a few years away from reaching its
debt limits, but the more
debt grows, the lower the country's growth
rate average will be over the
long term.
By the early 1980s, enormous external
debts, soaring interest
rates, and the beginning of a
long -
term decline in commodity prices set off what was subsequently known as the LDC
Debt Crisis.
Legg Mason plans to close a deal this month to restructure $ 650 million in
debt, a move designed to lock in favorable interest
rates for the
long term while taking advantage of the market's sustained appetite for corporate bonds.
When the financial crisis hit the markets in 2008, the Federal Reserve embarked ultra easy monetary policy, which included cutting short -
term interest
rates to effectively 0 % while suppressing
longer term interest
rates through the purchases of
long term Treasury
debt and mortgage - backed securities — a program informally referred to as quantitative easing.
For example, from: 1) the replenishment of foreign exchange buffers large enough to protect the economy against a protracted shock; 2) a significant reduction in government
debt metrics; 3) a successful diversification of the economy and government revenues that will become less dependent on oil receipts; 4) continued improvements in governance and institutional strength which act as
long —
term constraints on Angola's
rating.
Since U.S. government
debt is not
long -
term in nature, higher refinancing costs are extremely vulnerable to rising interest
rates.
Long -
term treasuries will likely still work as ballast when it matters most (global risk - off events), but we see short -
term U.S.
debt now offering compelling income, along with a healthy buffer against the risk of further interest
rate rises.
«We rarely use much
debt and, when we do, we attempt to structure it on a
long -
term fixed
rate basis.
In the
long term, however, continually falling interest
rates are a sign that something is fundamentally amiss; that the requisite balance between credit and
debt necessary for self - sustaining growth is missing.
One major question on Wall Street is if the
long -
term downtrend in
rates has now reversed, how will the government pay for all of this new
debt on top of the old
debt?
The answer is that Fed policy is the primary factor driving the returns of short -
term bonds, meaning that they tend to hold up much better than
long -
term debt when the Fed is expected to keep
rates low as was the case in 2013.
With household and government balance sheets still weighed down by a large
debt overhang, demand for new loans is extremely weak despite near zero short and
long term interest
rates.
Hold
debt levels static, and that
rate of economic decline would force Italy's
debt to GDP ratio to rise to 122 % from 118 % - clearly the wrong direction if the hope is to ease
long -
term solvency concerns.
It has been taking on
long -
term debt with an interest
rate at less than 4 % and using much of these funds to repurchase shares.
An inverted yield curve is an interest
rate environment in which
long -
term debt instruments have a lower yield than short -
term debt instruments of the same credit quality.
Finally, for some time the Finance Department has been engaged in a strategy of locking into
long -
term debt at historical low interest
rates, thereby minimizing the impact of higher interest
rates on public
debt charges.
And on such a
long term debt obligation, the difference of 0.25 % or 0.50 % on an interest
rate can mean tens of thousands of dollars over the course of 30 years.
The Forbes rankings for the «400 Best Big Companies in America» are based on stringent criteria including accounting and governance
ratings, revenue, positive equity,
long -
term earnings growth and
debt - to - capital ratios.
QE is misused true, it should be used to pay down
debts more and companies less, and the interest
rate should be raised half a percent straight away, maybe more to avoid a
long -
term bear market soon, but the US Dollar is strong right now because the US economy is fairly productive.
Given historically low
long -
term interest
rates, the government has considerable fiscal flexibility to undertake key public investments, while maintaining a falling
debt to GDP ratio.
Despite a slight increase in
long -
term interest
rates in recent weeks, he said interest
rates remain extraordinarily low and
debt service levels comfortable.
Of the three major
ratings agencies, only Moody's Investors Service has indicated that Illinois lawmakers» lack of
long -
term solutions for reducing that
debt is a severe problem.
Tags: bonds, Bund, ECB, Euro, Fed, French oats, IOER, Janet Yellen,
long -
term rates, Mario Draghi, NASDAQ, O / N RRP, SPS, U.S. Dollar Posted in Currency,
Debt Market, ECB, Fed 10 Comments»
The Bloomberg Barclays
Long -
Term Government / Corporate Bond Index is an unmanaged index that includes fixed -
rate debt issues
rated investment grade or higher by Moody's Investors Services, Standard & Poor's Corporation, or Fitch Investor's Service, in order.
The Fed revealed last week that it expects to raise
rates twice this year, possibly as soon as April, which makes short -
term munis more attractive since they're less sensitive to
rate adjustments than
longer -
term debt.
This was exasperated recently when I was discussing the case of how most investors misunderstand how it can actually be good over the
long - run to change a company's capitalization structure to replace equity with
debt by borrowing funds on a
long -
term, low - cost, fixed -
rate basis to repurchase stock, lowering the total count of outstanding shares.
Data as at March 2017; 2002
rating (
long -
term foreign
debt) as at the beginning of 2002.
Most of tax reform has a direct revenue impact and probably could be enacted through reconciliation, but it would either need to be revenue - positive over the
long run or else rely on gimmicks, such as sun - setting
rate reductions or other revenue - reducing provisions, to avoid increasing the
long -
term debt.
Thanks to STORE's skilled use of
long -
term fixed
rate debt, the net cash spread (cash yield minus cost of capital) generally stays the same, allowing for profitable growth of AFFO per share and thus the dividend.
In order to stimulate the economy further, the central bank has engaged in quantitative easing (QE) or the purchase of U.S. treasury bonds and mortgage
debt in order to drive down
long -
term interest
rates as well.
And by maintaining a light
debt load and locking in low interest
rates through
long -
term bond issues, management has prepared the business for higher interest
rates quite well.
The difference between us and other clubs is that our
debt is tied to
long term loans with low intetest
rates and we operate at a profit.
A cut in the base
rate is combined with a # 60bn increase in quantitative easing, a # 10bn purchase of corporate
debt and a
long -
term scheme to support the banks.
County Executive Picente added «We continue to take the fiscally conservative approach of keeping expenses low, watching every dollar, paying off
long term debt early and efficiently which has resulted in a strong fund balance and another upgrade to our credit
rating.