Sentences with phrase «lower than equity»

Their risk is lower than equity or growth funds, but higher than debt or fixed - income funds.

Similarly, they are likely to give you higher returns than debt funds, but lower than equity funds.

Given the seniority of debt within the capital structure, the rate of return for debt investments is typically lower than its equity investment counterpart.

The volatility of the high yield CDS market has been lower than equities and comparable to the high yield bond market.

Not exact matches

But purchasing stable, dividend - yielding equities will go a longer way than owning low - paying fixed - income assets.

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.

«Higher than expected revenues in FICC, I&L (equity gains) and Investment Management (incentive fees) more than offset lower than anticipated revenues in equity trading and investment banking (DCM better than expected, M&A and ECM worse),» Barclays analyst Jason M. Goldberg said in a note.

Asia and Latin America are not risk - free, but «there seems to be sense in buying equities in these regions on similar or lower valuations than their counterparts in the developed world given that dividend growth is likely to be superior, given higher economic growth potential.»

Private equity funds are basically «corporates on steroids» because they can't simply compete and perform the same way any other corporate would because corporates have a lower cost of capital and are able to accept lower returns than a PE firm.

The Republican president's renewed ramblings on trade dominated U.S. equity markets this week, with a tweet - induced swoon on Friday leaving the S&P 500 Index 1.4 percent lower than where it started on Monday.

The benchmark index for equity volatility rose to more than twice its level the day before, crushing bettors who'd gotten used to years of very low volatility.

It's a (mostly) short term, higher risk, higher reward place to invest cash that has a low correlation with the stock market, but is far more passive than buying and managing properties, has more opportunity for diversification than private placements (minimums of 5 - 10K, rather than 100K), and most of the equity offerings (and all of the debt offerings) provide monthly or quarterly incomes.

Net revenues in both equity underwriting and debt underwriting were significantly lower than the third quarter of 2010, reflecting a significant decline in industry - wide activity.

We prefer to take economic risk through equities rather than credit against a backdrop of low absolute yields, tights spreads and rising rates.

According to White and Grantham, a portfolio composed of 50 percent energy and metals, 50 percent all other equities, had a standard deviation that's 35 percent lower than the S&P 500 Index.

Given the relative position in the capital structure and security surrounding debt investments, the rate of return for creditors of a given company is typically lower than the company's equity holders.

Cash alternatives, such as money market funds, typically offer lower rates of return than longer - term equity or fixed - income securities and may not keep pace with inflation over extended periods of time.

Thus, many emerging markets» growth rates in the next decade may be lower than in the last — as may the outsize returns that investors realised from these economies» financial assets (currencies, equities, bonds, and commodities).

The 2013 survey also suggests that hedging ratios for foreign equity assets were lower than those of foreign debt assets, which is also consistent with the results of the 2013 National Australia Bank Superannuation FX Survey (NAB Survey; NAB 2013).

You can tap into equity at lower rates than you'd pay on other types of loans, and the interest you pay might be tax deductible.

You'll face only one fixed monthly payment, and since home equity loans generally carry lower interest rates than revolving credit card debt, that payment is likely to be much more attractive.

If you're looking for maximum home equity, this could be a great place to live: home values are up 4 percent from last year and the 3 percent unemployment rate is lower than the national average.

As the article chart below shows, McKinsey is forecasting that the average annual equity returns over the next 20 years will be between 1.5 and 4.0 percentage points lower than they were in the past 30 years.

The BIST 100, Turkey's equity benchmark, fell more than 4.7 % in the opening minutes of dealing to trade at the lowest levels since early July before paring the decline to around 3.5 % by mid-day.

Additionally, alternative investments historically have lower correlations to traditional assets like equities and fixed - income securities than some other asset classes do.

The approach is significantly more expensive than low - volatility, small - cap equity competitors, such as PowerShares» XSLV.

Persistently low interest rates, weak inflation and a lack of supply relative to demand for bonds leaves Rieder advocating for equities rather than the fixed income market.

The average investment - grade (high - yield) bond trades on less than 32 % (36 %) of days over the prior six months — liquidity in corporate bonds was considerably lower than in traditional listed equity markets.

European stocks were more than 4.7 percent in the red after Asian shares slumped to 3 - year lows as a three month - long rout in Chinese equities threatened to get out of hand.

This a relatively new program designed to help low - income Americans build home equity faster than they would with a traditional 30 - year loan.

British Journal of Industrial Relations, 54 (1) 2016, 55 - 82, showing that such companies had higher return on equity than low equity and profit sharing companies, based on a sample representing 10 % of sales and employment and 20 % of total market value of the entire NYSE and NASDAQ comparing companies with broad - based shares to companies without broad - based shares.

I have one little rant: It seems like EVERYONE is stating it as a known TRUTH that US equities will have lower returns in the next 30 years than they did in the last 100 years.

Recent fears of a recession have brought down the equity markets (NYSE and NASDAQ) to lower lows than expected.

The current environment of low interest rates and elevated equity valuations has many investors in a tight spot, as return expectations are lower than usual for both bonds and domestic stocks.

Its financial debt - to - equity ratio is a modest 0.12 times, easily lower than its closest peers.

And if you can buy some business that earns high returns on equity and has even got mild growth prospects, you know, at much lower multiple earnings, you are going to do better than buying ten - year bonds at 2.30 or 30 - year bonds at three, or something of the sort.»

«Berkshire has access to two low - cost, non-perilous sources of leverage that allow us to safely own far more assets than our equity capital alone would permit: deferred taxes and «float,» the funds of others that our insurance business holds because it receives premiums before needing to pay out losses»

Considering their low correlation and superior performance (higher profit margins and return on equity) to the sputtering tech sector that have been pushing this market to new highs, and the more than 70 publicly traded names, it seems like there's something on the menu for everyone.

Equity factors can be valued using fundamental metrics Value and Size are cheap while Low Volatility and Growth are expensive Likely more meaningful for medium - to long - term than short - term investors INTRODUCTION The term «Factor Investing» reached an all - time high this year according to Google

Yet, more than $ 2 trillion remains in the hands of financial - engineering strategies pegged to low volatility, including volatility - control funds, risk parity, risk premia, and long - equity - trend following.

Their cost of capital is a function partly of low interest rates and part of the implicit share price is a function of the fact that investors have looked at equities for dividends rather than bonds for yield because the bond market is so expensive.

The Series A Preferred shall also be convertible into any future series of Preferred Stock (the «Future Preferred») under either of the following circumstances: (a) if such conversion is approved by the Board or (b) if such conversion is in connection with a future Preferred Stock equity financing in which the Company's fully diluted pre-money valuation is greater than the Company's fully diluted post-money valuation immediately following the Series A Financing contemplated by this term sheet (a «Future Financing»), in either case, on a one - for - one basis (subject to anti-dilution adjustment) at the option of the holder; provided however, if such conversion is in connection with a Future Financing, that the holder may convert into shares of Future Preferred only in the event that all of such shares of Future Preferred received by the holder upon conversion are sold to an Approved Investor (as defined below) no later than 90 days following the first closing of the Future Financing at a price per share no lower than the price per share at which the Company sells shares of such Future Preferred in the Future Financing and, provided further, that such Approved Investor is not an affiliate, family member, or related party of the holder.

The YC documents are probably fine in situations where the investor (i) wishes to purchase equity rather than convertible debt, (ii) is otherwise somewhat indifferent on terms other than percentage ownership of the company, liquidation preference and right of first offer in future financings, (iii) is investing at a fairly low valuation (i.e. a couple of million dollars), and (iv) is only investing a small amount (i.e. a couple hundred thousand dollars or less).

While the early - 2017 Federal Reserve minutes «expressed concern [about] the low level of implied volatility in equity markets,» it is worth noting that the SPX implied volatility levels at both 80 % and 90 % moneyness (corresponding with out - of - the - money puts used for portfolio protection) generally were much higher than the VIX levels.

Lower inflation is likely to involve more equity and less debt than formerly.

However, I believe that companies are generally better off with convertible debt rather than an equity financing at a low valuation.

The higher prices would in turn be associated with equity returns also being about 4 % lower than «normal» over that 3 - 4 year period.

Canadians have more equity in their homes than Americans did, the default rate is lower, the sub-prime market is tiny, and mortgage interest is not tax - deductible, so there's no incentive to build up debt.

In the short run, rising equity values would tend to drive bond prices lower and bond yields higher than they otherwise might have been.

Taking on more equity risk when the expected future returns are lower than in the past and downside risks higher makes little sense to me.