Not exact matches
While Canada's record high household
debt makes the economy
more vulnerable, the bank's cautious approach is helping to manage the
risks, Poloz said.
Fiscal prudes are warning of runaway provincial
debt, but economic stagnation is the bigger,
more immediate
risk
While increasing
debt means
more spending, which is good for the U.S. economy, it also puts
more Americans at
risk of insolvency.
To grow, King says, «you have to take on
more risk, like taking on
more debt or using
more of your own money.
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.
Beyond then, we expect the company to sustain credit measures that are consistent with its intermediate financial
risk profile, characterized by fully adjusted
debt to EBITDA of 2.5x - 3.0 x, funds from operations to
debt of
more than 25 %, and EBITDA interest coverage of
more than 5.0 x.
His investment philosophy is rooted in
risk management and value creation, and he has purchased and executed
more than $ 650 million of commercial real estate and
debt collateralized by commercial real estate.
Speaking in Montreal on Thursday, central bank governor Stephen Poloz called household
debt a major
risk to the Canadian economy, suggesting the fear of stoking
more borrowing as one reason he has not been even
more dovish on interest rate policy.
From 1987 when Greenspan took over for Volcker, our economy went from 150 percent
debt to GDP to 390 percent as we had these easy money policies moving people
more and
more out the
risk curve.
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.
By taking on
more risk as an equity investor, one can economically participate in a company's value creation activities providing an enhanced return profile relative to a company's
debt offerings.
But Mnuchin extends that argument about transparency into something
more like a rap sheet: take Beijing's money, he warns, and
risk being trapped in a debilitating cycle of
debt — something that has led to asset - stripping by Chinese practitioners of what the National Defense Strategy calls «predatory economics.»
A company with negative working capital (
more liabilities than assets) is generally seen as being in financial
risk for increased
debt (which may lead to bankruptcy).
This two - part system is designed to exploit the role of equity in reducing the
risk appetite of banks by requiring them to have
more equity in their capital structure, and the role of uninsured
debt by making it
more desirable for creditors to monitor bank management.
Over the past five years, the
more worrisome government - issued
debt in Europe has made significant progress in managing the normal mechanism of higher - perceived
risk equaling higher yields.
According to Reuters «ideas about binding commitments to extend the Toronto
debt reduction goals at a summit hosted by Canada in 2010, sought by Germany first and foremost, have been abandoned» Mr. Harper and Mr. Flaherty would appear to be still living in the Toronto Summit, while the rest of the G - 20, except perhaps Germany, has moved on to confront
more pressing issues, including the growing
risks of global instability and the need to strengthen growth and job creation.
According to Bloomberg data, EM
debt is offering yields of above 4 %, and despite a strong year - to - date performance (
more than 13 %), we see potential for significant income with lowered spread
risk, given the diminished expectations of a near - term Fed move.
They argue that banks should fund themselves with
more equity and less
debt — or, to put it bluntly, that banks should
risk more of their own money, and less of everyone else's.
At the time the former seemed a
more dangerous
risk than the latter — although even then massive overinvestment was China's true vulnerability — but I think by now there is a rapidly developing consensus that investment, and the unsustainable concomitant increase in
debt, is China's biggest problem.
While this may be
more reflective of reality in some eyes, the truth is that carrying this much
debt can put you at a greater
risk of financial trouble, so adhering to a
more conservative level of
debt is likely to be safer and
more sustainable over time.
Well, in my case, the
debt is mortgage
debt, so once it's paid off it'll increase cashflow, drop
risk, and clear out a slot for (you guessed it)
more properties.
Canadians
risk falling into a «dangerous
debt trap» as they borrow
more to make ends meet, new survey says
«
More families that have elderly heads are placing themselves at
risk of running short of money in retirement due to their increased likelihood of holding
debt while in retirement,» he concludes.
A rise in interest rates — in part related to tax cuts which will stimulate the economy and require the government to issue
more debt — caused many investors to revalue their stock holdings (equities are often valued in part based on their expected returns versus a
risk - free Treasury).
Despite consensus optimism, non-bank financial institutions» appetite for corporate
debt is being cited as a source of
risk by
more prudent institutions.
The
more debt financing you use, the higher the
risk of bankruptcy.
The move was widely seen as a further sign of the shifting priorities of the Chinese government, with
more of a focus on stability and
risk management, rather than on the creation of additional
debt in order to sustain previous levels of growth.
What top hedge funds have been buying [Hedge Fund Wisdom] Free e-book on Texas HoldEm Investing [Texas Hold Em Investing] Latest letter from Greenstone Value Opportunity Fund [Distressed
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more great links, scroll through this linkfest [AbnormalReturns]
What makes this all the
more toxic is that European domestic banks and other financial institutions are encouraged to keep the charade going because global banking regulation makes the SOVEREIGN
DEBT A ZERO
RISK WEIGHTING.
The Federal Reserve Bank of New York may ask foreign lenders for
more detailed daily reports on liquidity as the U.S. steps up monitoring of
risks from Europe's sovereign
debt crisis, according to two people with knowledge of the matter.
This has left the U.S. economy with a much
more leveraged balance sheet than before the last crisis, and with much greater sensitivity to equity
risk and
debt default than at any point in history.
It's strange how quickly my mindset changed from de-risking to increasing
risk in two years, but I decided to take on $ 1,000,000
more in
debt to buy a fixer in Golden Gate Heights because my online revenue was growing, my net worth had rebounded, and I strongly believed buying a panoramic ocean view home on both levels for $ 720 / sqft was a no brainer.
Liu pointed to the European
debt crisis as «the single most significant
risk to the city's economy this year,» and said that even a mild European recession would be bruising, since European banks have
more than a trillion in assets in New York City offices and employ approximately 45,000 people here.
Our new rivals in the world economy are working harder than us, taking their studies
more seriously, keeping their
debt low, and taking
more risks.
Spending cuts will continue for many
more years to come David Cameron said today as he warned that public
debt risks pushing Britain «over the brink».
Those who argue we should spend
more want us to borrow
more, driving up our deficit and our
debt and putting our hard - won credibility and low interest rates at
risk.
«You can not take
risks and choose your own path when hampered by
debt, and I am hopeful that we will see riskier and
more innovative work as a result of this change,» said Patricia Ybarra, chair of Brown's theater arts and performance studies department.
Recent analyses of administrative data suggest that borrowers who leave college without earning a degree are at even greater
risk of default than those who graduate, even if they graduate with
more debt.
Debt Collector is a dark and gritty future - noir about a world where your life - worth is tabulated on the open market and going into debt risks... Read
Debt Collector is a dark and gritty future - noir about a world where your life - worth is tabulated on the open market and going into
debt risks... Read
debt risks... Read
More
You will need to pick each individual project to invest in and you might consider splitting your investment between
debt financing (less
risk but lower potential return) or equity financing (higher potential return but
more risk).
The longer we wait to restructure
debt, to swap
debt for equity, and to expect those who made the loans bear the losses as well, the
more we
risk allowing this downturn to become uncontrollable and unfathomably costly to the public.
The longer China's
debt problems are not addressed, the
more the
risks grow.
The group at that point decides if they want to take a
risk with the others because if one defaults the others are «morally» responsible and can't access any
more two or three tier funds until the
debt is clear.
Because of the nature of credit card
debt, it is much
more predictive of increased credit
risk than installment
debt.
If a company's long - term
debt burden is 100 % of its shareholder equity or
more, it could be at
risk of being too highly leveraged without a strong balance sheet to support it.
Debt Consolidation Loans Can Result In
More Debt Debt consolidation loans can help to reduce the interest you pay but also pose a
risk to those unwilling to change their habits.
Why heâ $ ™ s NOT like Buffett: Watsa is comfortable with far
more debt and much higher
risk levels than Buffett has been.
Now, as above, some of the difference is due to the possible need of printing too much currency to cover the
debt in crisis and now that we have
more than one country to invest in the extra
risk of international money flowing out of the country's bonds.
The disadvantage of equity is there's
more risk, equity has lower seniority than
debt.
Today I've created a strategy that focuses on large cap U.S. companies that are seen as undervalued relative to their peers, while trying to avoid stocks with high
debt that are
more at
risk to continue falling in value.