Sentences with phrase «much margin debt»

Now, it's one thing when there isn't much margin debt, because the margin debt won't influence the likelihood or severity of a crisis.

Stock Market Leverage: How much margin debt is too much, that it helps create systemic risk?

Not exact matches

This would sharply enhance growth rates during the expansion phase, much like margin borrowing enhances returns when market prices are rising faster than the debt servicing costs, but at the expense of sub-par performance once conditions reverse.

LBO's introduce way too much debt to allow any of it to ever be re-paid, especially since so many categories in retail operate on low margins in the first place.

Much of the recent growth in margin debt has reflected an increase in the average loan size, which has risen by around $ 13,000 to $ 107,000 over the past year.

A decade ago, the company suffered from too much debt and substandard profit margins.

I see a Chinese Stock market bubble... Tremendous amount of Margin debt... I see too much confidence and bullishness... all of this combining to an aged bull market.

So, if your asset allocation has changed by a wide margin say +10 %, then redeem that much amount and shift it to debt funds / fixed income.

Among these are avoiding companies with too much debt; looking for a margin of safety, such as over - 2.0 current ratio (current assets dividend by current liabilities); and seeking stocks trading at low price - earnings ratios and low price - to - book - value ratios.

Again, however, the important feature to observe is not so much the absolute level, but the cyclical tendency for spikes in margin debt to accompany overvalued, overbought, overbullish market peaks.

A surfeit of margin debt can turn a low severity crisis into a high severity crisis, both individually and corporately, the same way too much debt applied to housing created the crisis in the housing markets.

If debt and income put you on the margins when it comes to qualifying for a mortgage, a VA loan's compensating factors can be a valuable benefit and bring you that much closer to loan approval.