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 inc
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 inc
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 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 inc
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 inc
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 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.