Sentences with phrase «positive arbitrage on»

If the indexed account performs well, there is an opportunity for positive arbitrage on the borrowed funds.

So if the the company charges 5 % for a policy loan, you stand to make 1 - 1.5 % positive arbitrage on the cash value policy loan.

In the real world, it is easily attainable to get a positive arbitrage on borrowed funds using whole life insurance as an investment.

This creates an opportunity for positive arbitrage on your policy loans.

But large banks, corporations and wealthy individuals use properly structured life insurance contracts to obtain tax benefits, increase yields on cash, reduce borrowing costs and create positive arbitrage on equity loans.

Not exact matches

In a skewed distribution, you're putting probability into the negative tail but not the positive one, which forces the market to load a whole lot of the weight on relatively small gains in order to preserve arbitrage relationships.

Another option is to borrow from a local bank using your cash value as collateral that might provide more favorable terms on your loan, increasing your potential for positive arbitrage.

Another option is to borrow from a local bank that might provide more favorable terms on your loan, increasing your potential for positive arbitrage.

Managements are nearly entirely devoted to squabbling over spending money, political fiefdoms, getting the most power or resources, maximizing their options which typically reduce return on capital, buying back stock at high levels (when rationally they should be doing a dilution arbitrage, so that investors who bought at rational levels would receive a positive return of cash provided by those who irrationally buy into bubbles), not buying back stock at low levels (when rationally they should be buying, to arbitrage the other direction), etc..