Not exact matches
But low interest rates, at least in Canada, have pushed household
debt to such vertiginous levels that officials like Carney know they shouldn't be counting on consumer spending to drive the recovery — ergo, the call for
more corporate investment.
But analysts say
more still needs to be done on structural reforms to rein in ballooning
corporate debt, which has reached levels that the IMF and others have warned sharply raises the risks of a financial crisis.
Allowing the
corporate tax cuts to fade would save roughly the same, if not slightly
more money, against the
debt, analyses show.
Forbes also opposed the purchases of
corporate debt — something the BoE did briefly after the financial crisis, but
more to aid market functioning than to boost growth.
Interest in developing alternative sources of
debt for Australian
corporates is growing as
more superannuation funds, borrowers and banks di...
The Barclays U.S. Aggregate Bond Index is a market value — weighted index of investment - grade fixed - rate
debt issues, including government,
corporate, asset - backed, and mortgage - backed securities, with maturities of one year or
more.
The only variables he admits are structure - free: The federal government can indeed spend
more and reduce interest rates (especially on mortgages) so that the higher mortgage
debt, student
debt, personal
debt and
corporate debt overhead can be afforded
more easily.
Interest and amortization payments to savers tend to increase beyond the economy's overall ability to pay as
debt service absorbs
more and
more personal disposable income and
corporate cash flow.
Corporate debt in emerging markets has
more than doubled since 2008 to at least $ 18 trillion in 2014, according to an International Monetary Fund research paper in December.
All told, though, the plan is, like its House counterpart, a proposal to dramatically slash
corporate tax rates, open up a big new loophole for wealthy individuals, and pay for the cuts by dramatically expanding the national
debt and ending a number of tax deductions that could leave a substantial share of middle - and upper - middle - class people paying
more.
The $ 1.2 trillion high - yield
debt market could face a double whammy as spreads tighten and investors use the
corporate earnings season starting in the second week of October as an excuse to take even
more profits.
Many analysts argue that total
debt in China in fact exceeds TSF, and believe that the true
debt level is closer to 250 % of GDP, and perhaps even
more if we include the substantial number of
corporate receivables that have surged in recent years.
Consequently, U.S. Treasury yields have, over the last 30 years, declined
more than high - quality
corporate debt yields, yields on productive business capital and S&P 500 earnings.
You'd think that
corporate debt would grow in proportion to total sales, as this additional
debt is used to fund investments in productive activities that create
more sales and contribute to the economy, and that higher sales, and presumably higher earnings would create a proportionate increase in the value of the company, and thus in its stock price, and that they all go up together, not in lockstep but over time
more or less at the same rate.
The rotation from long to short term is much
more pronounced when it comes to funds dedicated to investment grade
corporate debt.
Based on recent
corporate leverage, this decline in the cost of
debt would increase the typical company's return on equity by
more than four percentage points.
Delaying the
corporate - tax - rate reduction was one of many tough choices Senate leaders made as they tried to craft a bill that would lower taxes but also add no
more than $ 1.5 trillion to the
debt over 10 years.
Since 2010, U.S.
corporate debt has been growing at an annualized rate of
more than 5.5 %.
Income Strategy can own high - yield
corporate debt, income - paying common stock, preferred shares, convertible securities, REITs, business development companies, MLPs and
more.
In recent months, the yield on US
corporate bonds, especially investment - grade securities, is a little
more than 100 basis points compared to the yield on government
debt, dropping within striking distance of the lows seen post the 2008 financial crisis.
In all, so - called «reverse Yankee credits» account for
more than 20 % of European
corporate debt issuance so far this year, feeding a patriotism of sorts in continental financial circles.
Investors are hungry for high quality, multibillion - dollar
debt deals, as shown by Anheuser - Busch InBev Finance Inc. of Belgium's success with two
corporate bonds totaling
more than $ 60 billion in 2016.
No asset may prove
more prescient than the heart of the QE distortion:
corporate debt.
As described in
more detail in a recent article in the November RBA Bulletin, [6] Australian CDO issues are mostly backed by
corporate debt, with
corporate bonds and loans accounting for 57 per cent and 27 per cent respectively.
The market «prices in» the tax - deductible feature on municipal coupon payments, so when you aren't a beneficiary of said tax treatment, then I (at least) believe it makes
more sense to get tax - free income on higher yield
corporate debt (of the same credit profile).
Trying to anticipate the changing environment, and high
corporate debt levels, suggest it would be wise to start taking a
more defensive position on equities long before yields on 10 - year Treasuries reach 5 %.
Interest in developing alternative sources of
debt for Australian
corporates is growing as
more superannuation funds, borrowers and banks discuss ways for retirement schemes to lend directly to companies.
Thus, I believe the Fed's articulation of a lower terminal policy rate in the longer run is much
more important for the mortgage markets and for
corporate capital expenditures financed through the
debt markets than is a modest increase in short rates.
Despite consensus optimism, non-bank financial institutions» appetite for
corporate debt is being cited as a source of risk by
more prudent institutions.
It's also interesting to examine the changing significance and dynamics of the European bond market in general, which has almost doubled in size since 2005 to
more than $ 10 trillion today, including government, investment - grade
corporate debt and high yield.
Corporate and government
debt have been soaring for years, but investor appetite for such
debt has evidently grown even
more.
Yet, even if political concern doesn't materialize into action, a
more systemic problem remains: rising interest rates combined with the toxic mix of
corporate inequality and
debt.
Our Asset Based Lending Group provides
debt capital solutions of $ 10 million or
more to our commercial,
corporate and investment banking clients through customized funding solutions across the credit spectrum.
CORPORATE FINANCING NEWS:
CORPORATE DEBT By Gordon Platt Distressed debt and bankruptcy restructurings completed in 2012 more than doubled from 2011 to $ 423 billion, according to Thomson Reut
DEBT By Gordon Platt Distressed
debt and bankruptcy restructurings completed in 2012 more than doubled from 2011 to $ 423 billion, according to Thomson Reut
debt and bankruptcy restructurings completed in 2012
more than doubled from 2011 to $ 423 billion, according to Thomson Reuters.
The past several years have featured little
more than a gigantic asset swap, the short description being that massive volumes of government
debt have been swapped by central banks for massive volumes of idle bank reserves, while massive volumes of low - yielding, covenant - lite
debt have been issued into the hands of yield - seeking investors, in order to retire massive volumes of
corporate equities at elevated valuations through buybacks.
AbbVie, the pharmaceutical unit of Abbott Laboratories, sold $ 14.7 billion worth of bonds in the largest offering in the US
corporate debt market in
more than three years.
The Bloomberg Barclays US
Corporate Index is a market - weighted index of investment - grade corporate fixed - rate debt issues with maturities of one year
Corporate Index is a market - weighted index of investment - grade
corporate fixed - rate debt issues with maturities of one year
corporate fixed - rate
debt issues with maturities of one year or
more.
As of August 1, yields on some prime funds, which primarily invest in riskier
corporate debt and may pay higher yields, were as high as 1.2 % for a minimum initial investment $ 2,500 to $ 1 million or
more, with an industry average 0.64 %.
Since 2012, there has been USD 1.3 trillion [2] of U.S. high - yield
corporate debt issued —
more than the total amount issued in the prior 10 - year period (2002 - 2011).
For High Net worth Individuals or
corporates, using
debt mutual funds turns out to be
more tax - effective.
The
debt portfolio of the fund consists of high quality
corporate bonds and G - secs with
more than 80 % investment in AAA rated securities and rest in AA rated.
Outstanding
corporate debt stands at $ 7.5 trillion in 2010, accounting for
more than 20 percent of U.S. fixed - income securities.
An open ended
debt scheme predominantly investing in AA and below rated
corporate bonds (excluding AA + rated
corporate bonds) Read
More
Corporate debt will become
more expensive as well, specifically for the companies that do not sport the AAA rating.
Since 2010, U.S.
corporate debt has been growing at an annualized rate of
more than 5.5 %.
Strategy: This fund is primarily invested in fixed income securities issued or guaranteed by the U.S. Government, its agencies, or instrumentalities, and
corporate debt instruments, including but not limited to asset - backed and mortgage - backed securities rated not less than Baa3 / BBB - by two or
more nationally recognized rating services.
Net Financial
Debt is
more important than ever because of the
corporate trend to leave cash overseas and borrow domestically.
Now expense ratios are
more so relevant for those funds which invest in
debt such as
corporate bonds, government securities, government treasury bills, etc..
When credit markets are not functioning properly and there is fear of
corporate default, it is simply
more expensive to issue
debt.
No asset may prove
more prescient than the heart of the QE distortion:
corporate debt.