a) Bond Price Bump due to Demand: Initially, as market money moves
out of equities into bonds, the bond prices will rise (for a short while).
Not exact matches
After years and years and years
of massive, massive inflows
into bond funds and equally massive outflows
out of domestic
equity funds, we've finally started to see that shift.
«Franchisees generally can't take
out a loan to buy the franchise, so they take a lot
of money
out of pocket to buy it, and then they need to put
equity into the facility,» says Fillet.
The one element binding this diverse group
of investors together is that they receive some type
of equity or stock vehicle when they put money
into a growth company; each group then has its own set
of goals in regard to how much
of an investment return its members hope to earn on that stock and how quickly they hope to earn it (usually when they cash
out during an initial public offering or in a merger or acquisition deal).
«But given the financing opportunities that exist for us in the private -
equity arena and our growth rate this year
of 25 % per month, we were able to win a loan commitment from a bank that would come
into effect as soon as we carried
out a private placement,» notes CEO Brad Galle.
Using
equity to recruit talent is more complicated than divvying
out pieces
of pie, and finding the right balance
of cash and
equity for employees relies on everyone knowing what they are getting
into.
In addition, I would point
out that
equities are purchased and traded by private individuals, who inherently have time value
of money and liquidity preferences that are also priced
into equities, given their specific limitations and characteristics (e.g., in the event
of a stock market crash, liquidity may disappear at the exact moment it is most desired, and therefore the risk
of that lack
of liquidity is priced
into the
equity).
«One
of the most important decisions for
equity investors over the next 12 months will involve timing a style rotation
into the more defensive areas
of the market that are currently
out of favor,» says Sheets.
In other words, get
out of cash and
into equities.
Here's the loophole: If you take
out a new home
equity loan or line
of credit and use the money for home improvements, you're converting a home
equity debt
into an acquisition debt because the proceeds are used to «substantially improve» a qualified residence.
Circling back to the mall / REIT ticking time - bomb, while the Fed can keep the stock market propped up as means
of preventing an immediate nuclear melt - down in U.S. pensions (all
of which are substantially «maxed -
out» in their mandated
equities allocation), the collapse
of commercial mortgage - back securities (CMBS) will have the affect
of launching a nuclear sub-missile directly
into the side
of the U.S. financial system.
In order to rebalance their portfolios, large and small institutions are moving some
of those gains
out of equities and
into alternative investments (such as VC deals).
The Federal Reserve is pumping liquidity and reserves
into the financial system to reduce interest rates, ostensibly to enable banks to «earn their way»
out of negative
equity resulting from the bad loans made during the real estate bubble.
If there's not a single buyer that will take on both the assets and liabilities without the government assuming private default risk, Bear's assets should be put
out for bid, Bear's bonds should go
into default, and by the unfortunate reality
of how
equities work, Bear's shareholders shouldn't get $ 2 - they should get nothing.
Would it hurt too much to take
equity out of either
of your other SF rentals (
into a 5/1 ARM as others have suggested) or primary residence and rid yourself
of the 4.25 % Tahoe headache?
In spite
of the Chinese stock market's perceived relative unimportance, the Chinese authorities have pulled
out all the stops to ensure that
equity volatility does not spill over
into the wider economy.
This cutback will accelerate the point at which the program moves
into supposed «negative
equity» — a calculation that ignores the option
of restoring pension funding to the government's general budget, where it would be paid
out of progressively levied income tax and hence borne mainly by the wealthy, not by lower - income wage earners as a «user fee.»
«We think next year gold could hit $ 1,000 an ounce and that will just be a continuation
of a trend which is forced and forced and forced by more people wanting to get back
into equities and
out of commodities.»
Treasury international capital is used as an economic indicator that tracks the flow
of Treasury and agency securities, as well as corporate bonds and
equities,
into and
out of the United States.
Jane — As a former RIA I decided to move ALL my clients
out of the rigged stock market in March
of 2000 and
into Equity Indexed annuities for the sole purpose
of protecting their investments.
After building some
equity in your home with an FHA mortgage, you might not be aware
of your options beyond refinancing
into an FHA Cash -
Out Loan.
But make no mistake — by moving more
of us
out of super-safe cash and gilts and
into riskier assets like peer - to - peer savings, corporate and retail bonds and
equities, the stakes are being raised for everyone.
That's how the
equity - indexed annuity — a costly product with a woeful past — slipped
out of the hands
of a potentially strong regulator and
into the cushioned lap
of a weak one.
As a result
of the likely move
into negative real returns on cash, more cash savers will move
into UK government bonds (gilts), more gilt owners will swap them for corporate bonds, some more will move
into equities, and a sliver
of risk - takers will use cheaper financing to start businesses or take
out loans to build property.
There are some non-financial issues with being in
equities in late retirement — although there's a case to be made that staying on top
of this helps retain intellectual facilities a bit if we look at Warren Buffet and his dreadful diet, looking at the state some people get
into as they get older I'm not sure they should be licensed to drive an
equity portfolio unless they can sit on their hands and let that nice Mr Vanguard sort
out the rebalancing shenanigans...
A VA Cash -
Out may be your best way to convert your home's
equity into cash for a variety
of needs.
«The «flight to safety» concept — periods
of volatility causing money to flow
out of equity markets
into fixed income and thus driving prices up and yields down
In our legal special, we discover what it takes to succeed as a private
equity lawyer; examine some
of the challenges facing the industry since the financial crisis; find
out why fund terms are lengthening, the advantages
of integrating permanent capital
into a fund structure, and the latest regulatory shift in Germany in our expert commentaries; all this and more.
«The «flight to safety» concept — periods
of volatility causing money to flow
out of equity markets
into fixed income and thus driving prices up and yields down — no longer looks viable,» Bill Belden, head
of ETF business development at Guggenheim, said.
Beginning in the early 1950s, pension funds began to shift their allocations
out of fixed income and
into equities.
Yet in
equity and credit derivatives, the same traders complain that Goldman charges such high commissions to get
out of trades that they have gotten
into with Goldman that they would rather go through the arduous paperwork
of a novation to get
out of the same trade with Deutsche Bank, BNP Paribas or Credit Suisse.
The disappearance
of low - risk yield opportunities in fixed income markets has subsequently forced investors
out the risk curve and
into traditionally defensive
equity sectors with reasonable payouts.
Last year, investors shifted their money
out of money markets
into both bonds and
equities.
The now - familiar pattern
of inflows
into international
equity ETFs and outflows
out of U.S.
equity ETFs continued for a fourth - straight week.
 The Harper government's decision last year to write off every penny
of the auto aid and thus build it all
into last year's deficit calculation (which I questioned at the time as curious and even misleading) has already been proven wrong. Since the money was already «written off» by Ottawa as a loss (on grounds that they had little confidence it would be repaid — contradicting their own assurances at the same time that it was an «investment,» not a bail -
out), any repayment will come as a gain that can be recorded in the budget on the revenue side. Jim Flaherty has learned from past Finance Ministers (especially Paul Martin) that it's always politically better to make the budget situation look worse than it is (even when the bottom has fallen
out of the balance), thus positioning yourself to triumphantly announce «surprising good news» (due, no doubt, to «careful fiscal management») down the road. The auto package could thus generate as much as $ 10 billion in «surprising good news» for Ottawa in the years to come (depending on the ultimate worth
of the public
equity share).
$ 1,800,000
of my
equity will turn
into $ 3,944,000 in 20 years at a 4 % compounded return, if I cancel
out the cost
of carrying the $ 815,000 mortgage (2.35 % + 1.2 % property taxes + maintenance expenses = a wash).
In addition to material and labor being more affordable (provided you're willing to put some sweat
equity into the project), houses can be built in stages and added on to as resources allow — certainly a better option than taking
out an overwhelming mortgage and racking up hundreds
of thousands
of dollars worth
of debt.
The quality and
equity aspect
of the Free Senior High School policy that was rolled
out amid fanfare is being called
into question, even in the nation's capital, Accra, with the dire infrastructure situation students
of the La Presbyterian SHS are enduring on a daily basis.
Urban Decay itself is owned by a private
equity firm and though the company backed
out of expanding
into China, I wonder if the sale was
out of the hands
of the founder
of Urban Decay.
During the past 20 years, discussions
of educational
equity have often fallen
into an either / or paradigm in which one group
of students has been singled
out as the only group needing attention.
I think his focus on
equity is admirable, and he and I were drawn
into this work for many
of the same reasons, but — and it is not that I'm coming
out to attack Steve — but with the upcoming election he will have had two terms and eight years to put forward his vision for the district.
ESSA has provisions in place to hold states accountable for monitoring educational
equity, and the act requires schools to disclose the number
of low income students and students
of color that are placed
into classrooms with «ineffective,
out -
of - field, and inexperienced teachers.»
Barry help me get
out of my Saab and
into a Kia Sorento even with my negative
equity on my Saab.
Just shortly after the downfall
of Borders in the United States word is
out that the Australian book chains have been placed
into voluntary administration by its private
equity owners.
International
equity ETFs also maintained their momentum with some investors switching
out of Canada and perceived over-valued U.S. stock exposures
into EAFE and other developed global markets.
Without straying too far
into general economics, 15 year loans would also have averted the mortgage crisis
of 2008, because more people would have had enough
equity that they wouldn't have walked
out on their homes when there was a price correction.
For example, when
equity markets crash, money flows
out of stocks and
into safe havens like high - quality bonds, which drives their prices up.
So, your GAP provider covers your $ 1,000 deductible and takes care
of the $ 2,510 you still owe on your loan, protecting you from having to pay
out -
of - pocket or roll any negative
equity into your next car loan to cover your losses.
Turns
out that only about 10 %
of these assets fall
into exotic categories: the 6 % allocated to venture capital and private
equity, the 2 % to hedge funds, and the 2 % lumped together as «other.»
But when you take
into account the odds
of making two correct timing trades —
out now, in later, and the cost
of the taxes on my taxable account, the incentives for reducing
equity exposure now look poor.