Sentences with phrase «on debt leverage»

The trick is to persuade employees to hand retirement funding over to financial managers whose idea was to make money off the economy by extracting interest and dividends off workers, homeowners and companies being bought on debt leverage.

Not exact matches

On November 16, 2006, Clear Channel Communications, which was publicly traded at the time, announced that it had agreed to a leveraged buyout totaling $ 26.7 billion, including $ 18.7 billion for the shares plus the assumption of $ 8 billion in debt.
The two - day AIM Summit titled The Shifting Paradigm of Alternative Investments, will see expert speakers discussing risk and return across the private debt space, look into the regulatory aspects, host interactive sessions on the impact of US and European leveraged lending guidelines, among other current market trends.
Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.
The «answer» was to financialize the U.S. economy with vast increases in credit, debt and leverage, enabling a hyper - consumerist economy built on a pyramid of debt and leverage.
Concurrent with this orgy of public debt, the State encourages massive expansion of private credit via fractional lending, low bank reserves, and other forms of leverage, in a vain attempt to stimulate demand in an economy burdened with overcapacity, declining employment, marginal return on capital and saturated markets.
The move would fly in the face of the Chinese government's mission to bring down the country's soaring debt as the country finds itself reliant on leveraged growth.
For instance, Wanda no longer has to record debts associated with those theme parks and hotels; all it has is the bank loan it took out to advance money to Sunac, which is now taking on the property and related leverage.
Leveraged buyouts also require companies to earmark some of their incoming cash to reduce the debt taken on as part of the process of going private.
Finally, Morgan Stanley also notes that bitcoin is more leveraged than previously thought — people are taking on debt to buy the cryptocurrency.
After those two leveraged buyouts, Neiman carries long - term debt of $ 4.55 billion, on which it paid $ 289.9 million in interest last year.
About $ 10 billion of debt was loaded on the company as a result of the leveraged buyout — where the company leverages up its own balance sheet to fund its own buyout and to compensate the PE firms.
Bubble - type prosperity is based on debt - leveraged asset - price gains at the expense of the economy at large.
Debt leveraging inflates property prices, creating (6) hopes for capital gains, prompting buyers to take on even more debt in the speculative hope that rising asset prices will more than cover the added interest, which is paid out of capital gains, not out of current incDebt leveraging inflates property prices, creating (6) hopes for capital gains, prompting buyers to take on even more debt in the speculative hope that rising asset prices will more than cover the added interest, which is paid out of capital gains, not out of current incdebt in the speculative hope that rising asset prices will more than cover the added interest, which is paid out of capital gains, not out of current income.
Kelter estimates if the company took on C$ 1 billion of debt and increased its leverage to three times EBITDA including restructuring or rent costs, it could fund a C$ 6.50 special dividend or buy back up to 12 percent of shares.
Debt leveraging is depicted as the easiest and even the surest way to accumulate wealth — going into debt to buy assets whose prices are being inflated on credit, or to spend in the hope of paying out of rising and more easily earned future incDebt leveraging is depicted as the easiest and even the surest way to accumulate wealth — going into debt to buy assets whose prices are being inflated on credit, or to spend in the hope of paying out of rising and more easily earned future incdebt to buy assets whose prices are being inflated on credit, or to spend in the hope of paying out of rising and more easily earned future income.
And thirdly, of course, higher leverage means that monetary policy's impact via its effect on the behaviour of borrowers will be bigger than in the past — especially in a country like Australia where the majority of household debt is at floating rates.
Also, General Partners who have structured their fund with an SBIC license (typically a 2:1 debt to equity ratio), use the secondary market to decrease or remove leverage on the fund.
It created debt that was based on fraud, leverage, and other non-productive uses of capital: it debased the value of money.
Last year, iHeartMedia flagged «substantial doubt» about its ability to continue as a going concern, as it struggled to get out from under a massive debt load it took on as part of a leveraged buyout of billboard company Clear Channel Outdoor in 2008.
What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?
-- Goethe What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?
This framework includes a recapitalization of the banks; a «voluntary haircut» of 50 percent on Greek debt holders; and, a leveraging of the EFSF to about $ 1 trillion.
Second, even if the bank did not own SIV debt, the use of the back - stop facility by the SIV meant that the leverage ratio of the sponsoring bank was suddenly increasing - even if the bank did not consolidate the SIV on its balance sheet at the time.
However, it's only risky on assets you have no control over or when you over leverage without looking at the cash flow closely after debt service.
However, Sanchez Energy's plan was to use higher oil prices to boost production and cash flow so it could support the mountain of debt it took on to complete the deal, with its aim to get leverage to less than 3.0 next year.
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.
When times are good, sales ticking higher, margins expanding and cash flows strong, only the advantages of leverage are visible - higher returns on equity, faster growth rates and an enhanced benefit to stock holders as debt is repaid.
Leveraging our leading institutional distribution platform, our goal is to provide our clients with solutions across all banking products, including initial public offerings, follow - on offerings, wall - crossed offerings, bought deals, private placements, ATMs, convertible offerings, leveraged loans, investment grade and high - yield debt offerings and all forms of advisory services.
Leveraging on our extensive network of established relationships and skilled structuring capabilities, the firm sources and analyses a broad range of distinct opportunities across categories to invest in well - collateralized debt instruments.
A company's Debt - to - Capital (D / C) ratio measures its financial leverage: How much does the company depend on borrowed money to finance its activities?
To date, we do not see a systemic threat from leveraged lending, since broad measures of credit outstanding do not suggest that nonfinancial borrowers, in the aggregate, are taking on excessive debt and the improved capital and liquidity positions at lending institutions should ensure resilience against potential losses due to their exposures.
With the majority of the fixed income world taking sides on prize fights like Greece, the European Central Bank (ECB), inflation, and energy - related debt, you may have missed the beating leveraged loans have been receiving in the media.
Global Capitalism is trapped in its own Prisoner's Dilemma; forty four years after the end of the Bretton Woods System global central banks have manipulated the cost of risk in a competition of devaluation leading to a dangerous build up in debt and leverage, lower risk premiums, income disparity, and greater probability of tail events on both sides of the return distribution.
The rise in LIBOR since May 2017 has imposed increasing financial stress on the ability of leveraged companies to make debt payments.
Now it's left holding a leverage on leverage bomb of unprecedented proportions, with sketchy debts oozing out of every crack and crevice..
China's debt - to - GDP ratio of 282 % (according to McKinsey) is likely the most glaring example of a very large economy taking on excessive leverage to sustain growth.
This is what we found out: The major reasons why firms cut their dividend had to do with preserving cash amid a secular or cyclical downturn in demand for their products / services or when faced with excessive leverage (how much debt they held on their respective balance sheets) during tightening credit markets.
He has, though, outlined his admiration for the model the Glazer family have at Manchester United, which was a leveraged buyout that loaded debt on to the club.
He sits on the commercial board and was brought in to succeed former chief executive David Gill after helping to engineer the Glazer's takeover and all its precarious, leveraged details that forced hundreds of millions of pounds of debt upon United.
In particular, a massive overhang of debt from a decade - long boom when economic growth was based on unsustainable household borrowing, unrealistic house prices, dangerously high banking leverage, and a failure of governments to put their public finances in order.
To conduct the study, the researchers used stock - market data concerning 177 firms listed on the Egyptian stock exchange in early 2011, and examined daily closing prices for those firms between 2005 and 2013, as well as total firm assets and leverage (the amount of debt as a fraction of total assets).
The Consumer Financial Protection Bureau leveraged Regulation Room to solicit public comment on an Advanced Notice of Proposed Rulemaking (ANPRM) covering Consumer Debt Collection Practices.
Unfortunately, the publishers, because of leveraged buyouts and high debt loads, not to mention substantial physical infrastructure, have decided to focus on selling bestsellers as their model.
When negotiating we bulk together a large number of clients» credit card debts with a particular creditor, then basing negotiations on a significant dollar amount, where we have more leverage and can solidify more substantial discounts for our clients.
Prior peak earnings were, indeed, an artifact of unrealistically high profit margins and return on equity, driven by large amounts of debt - financed leverage.
The plan is to invest in the equity and debt securities of «distressed, stressed and leveraged companies,» on the popular premise that they're widely misunderstood and their securities are often incorrectly priced.
«As interest rates increase, if they go too high, the higher debt - to - equity ratios and leverage will have a negative effect on cash flows.»
If you're lucky enough to be paying historically low rates (as I am on my mortgage) and getting good returns on the investments so the latter is the higher percentage, the balance goes the other way and you'd want to continue paying off the debt relatively slowly — essentially treating it as a leveraged investment.
However, these funds are risky, because many invest via leverage, which means they take on debt to invest in other debt.
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