Not exact matches
YELLOWKNIFE, Northwest Territories, May 1 (Reuters)-
Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that d
Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central
bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that d
bank can manage the risks of Canada's high household
debt, even as he signaled that interest
rate hikes will continue, increasing the cost of that
debt.
The European Central
Bank on December 3 dropped one of its main policy
rates to negative 0.3 % from negative 0.2 % and said it would extend its bond - buying program, under which it creates euros to purchase
debt, to at least March 2017.
YELLOWKNIFE, Northwest Territories, May 1 -
Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that d
Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central
bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that d
bank can manage the risks of Canada's high household
debt, even as he signaled that interest
rate hikes will continue, increasing the cost of that
debt.
«Most central
banks across emerging markets have completed
rate cutting cycles,» said Jim Barrineau, co-head of emerging markets
debt at Schroders Investment Management.
But in recent years, as the
Bank of Canada held interest
rates to historically low levels and consumer
debt skyrocketed, the federal government tightened mortgage restrictions on regulated financial institutions, including HCG.
While the high level of existing
debt means
rate hikes will have a stronger impact in cooling demand than they did in previous years, it is still too soon to know just how much of an effect the
bank's three
rate hikes have had, Poloz said.
YELLOWKNIFE, Northwest Territories, May 1 -
Bank of Canada Governor Stephen Poloz said on Tuesday that the view of the Canadian economy is quite good despite record levels of household debt, and he was confident the central bank can manage the risk of that debt even as interest rates r
Bank of Canada Governor Stephen Poloz said on Tuesday that the view of the Canadian economy is quite good despite record levels of household
debt, and he was confident the central
bank can manage the risk of that debt even as interest rates r
bank can manage the risk of that
debt even as interest
rates rise.
The
bank offered a loan at a low
rate to pay off her high - interest credit card
debt, and she ended up taking out a second mortgage for $ 80,000.
Previously, the
Bank of Canada hinted it might raise
rates to curb the borrowing binge, but in March it abruptly changed tack by affirming the household
debt - to - income ratio is «stabilizing near current levels.»
Macron has said he hopes to pool liability for various kinds of
debt: a completed
banking union would ensure bailout costs for individual financial institutions would be distributed across the continent rather than borne by individual countries, and the so - called Eurobonds would allow national governments to borrow money against a joint continental credit
rating.
LONDON, May 3 - At a time when the impending withdrawal of European Central
Bank stimulus was expected to hurt southern European bond markets, so - called «peripheral» euro zone
debt continues to outperform its higher -
rated peers.
The record high levels of consumer
debt among Canadians has also raised a red flag from
Bank of Canada governor Mark Carney and others who have warned that interest
rates will rise at some point — raising the cost of borrowing.
That is, when
debt service ratios are calculated using the discounted mortgage
rates actually charged by
banks (about 125 percentage points below posted
rates), the average Canadian homeowner is paying just 25 % or so of income on mortgage payments, far below the 32 % benchmark used for mortgage - insurance qualification.
In three rounds, the last of which concluded in 2014, the central
bank credited itself with funds that it then used to buy
debt — Treasurys and mortgage - backed securities, the latter in an effort to drive down
rates on housing loans during the worst real estate market since the Great Depression.
The
Bank of Canada, for one, has carefully assessed the economic risks of consumer
debt in order to determine how quickly it can raise interest
rates without piling on too many
debt - servicing costs for over-stretched households.
The central
bank has concerns about the ability of households to keep paying down their high levels of
debt when interest
rates continue their rise, as is widely expected over the coming months.
Speaking in Montreal on Thursday, central
bank governor Stephen Poloz called household
debt a major risk to the Canadian economy, suggesting the fear of stoking more borrowing as one reason he has not been even more dovish on interest
rate policy.
«The public funds, at least in Pennsylvania, are structured to enable the
bank to make a loan that they might not be able to make without the public
debt behind them by enhancing the loan - to - value, reducing the risk to [the
bank], and then passing on some benefits [to the borrower] in the form of lower interest
rates, which help cash - flow issues.»
Yields in the $ 14 trillion market for U.S. government
debt touched record lows in 2016, driven by years of aggressive central
bank intervention in the wake of the 2008 - 2009 financial crisis to keep interest
rates low to stimulate the economy.
Then, in the early 1990s, the
Bank of Canada began inflation targeting, which brought down interest
rates and made the carrying costs of
debt far more manageable.
Poloz said there is good reason to believe the central
bank can manage the risks of Canada's high household
debt, even as he signaled that interest
rate hikes will continue, increasing the cost of that
debt.
Another type of short - term fund to consider as
rates are climbing: those that invest in floating -
rate debt, also known as
bank loans.
The list of individuals and organizations losing sleep over household
debt — the government, bond -
rating agencies, senior
bank executives, economists — is long and growing.
a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other
debt; the issuer goes to an underwriter to get their securities sold in the new issue market; for certificates of deposit (CDs), this is the
bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon interest
rate, maturity, call features, etc..)
«While it's too early to tell, we just might have seen the peak in the
debt ratio in Q3, as Q1 will no doubt see a sizable decline due to seasonality,» said Benjamin Reitzes, Canadian
rates and macro strategist at the
Bank of Montreal.
In a study issued this week (Aug. 11 - 15), Goldman Sachs
Bank USA economists Eli Hackle and Hui Shan showed that the homeownership
rate of young adults, ages 25 - 34, who were carrying more than $ 50,000 in student, was 8 percentage points lower than for college graduates with less than $ 50,000 in student
debt.
Progress in a few areas has been solid: slashing of bureaucratic red tape has led to a surge in new private businesses; full liberalization of interest
rates seems likely following the introduction of
bank deposit insurance in May; Rmb 2 trillion (US$ 325 billion) of local government
debt is being sensibly restructured into long - term bonds; tighter environmental regulation and more stringent resource taxes have contributed to a surprising two - year decline in China's consumption of coal.
Wages and prices are assumed to fall proportionally, enabling shrinking economies to «earn their way out of
debt» by squeezing out a trade surplus to earn the euros to carry the enormous mortgage
debts that fueled the post-2002 property bubble, and the new central
bank debt taken on to support the exchange
rate.
A
bank like Silicon Valley Bank, which is deeply entrenched in the tech community can provide lines of credit at perhaps a slightly cheaper rate, but they are a retail bank first and foremost, and not a venture debt comp
bank like Silicon Valley
Bank, which is deeply entrenched in the tech community can provide lines of credit at perhaps a slightly cheaper rate, but they are a retail bank first and foremost, and not a venture debt comp
Bank, which is deeply entrenched in the tech community can provide lines of credit at perhaps a slightly cheaper
rate, but they are a retail
bank first and foremost, and not a venture debt comp
bank first and foremost, and not a venture
debt company.
The $ 1.2 trillion market for U.S. junk bonds yields about 6.6 percent, double what's offered by higher -
rated company
debt, according to
Bank of America Merrill Lynch index data.
While the central
bank is reluctant to raise
rates too fast with $ 2.1 trillion in outstanding household
debt, increases are inevitable.
Unhedged foreign currency
debt, as was prominent in 1997, means that a fall in the currency pushes up
debt servicing costs for the government, local corporates and
banks, but a rise in interest
rates to assist the exchange
rate has the same adverse effect.
Combining this with poor sales growth results in a dismal outlook for earnings 3) the pressure on earnings will continue to hurt capital spending, which is usually just a magnified image of earnings, 4) the same factors will continue to raise default
rates, causing earnings problems and
debt downgrades among
banks and financial companies, 5) earnings shortfalls will also lead to continued job cutbacks, with the unemployment
rate rising to at least 5.5 % (indeed, once the unemployment
rate has advanced by 0.5 % from its lows, it has never reversed until rising by least 1.5 % off those lows).
Posted by Nick Falvo under
banks, budgets, capitalism,
debt, deficits, deflation, democracy, economic crisis, economic history, Europe, exchange
rates, financial crisis, Greece, IMF, inflation, monetary policy, recession, taxation, unemployment, wages.
Posted by Nick Falvo under
Bank of Canada, budgets, China, Conservative government, deficits, economic crisis, economic growth, employment, exchange
rates, federal budget, fiscal policy, global crisis, household
debt, IMF, interest
rates, labour market, macroeconomics, manufacturing, monetary policy, recession, stimulus, unemployment.
Toward debtor countries American diplomats work through the World
Bank and IMF to demand that debtors raise their interest
rates and impose taxes and austerity programs to keep their wages low, sell off their public domain to pay their foreign
debts, and deregulate their economy so as to enable foreign investors to privatize local electricity, telephone services and other infrastructure formerly provided at subsidized
rates to help these economies grow.
Our Global Market Strategies segment, established in 1999 with our first high yield fund, advises a group of 46 active funds that pursue investment opportunities across various types of credit, equities and alternative instruments, including
bank loans, high yield
debt, structured credit products, distressed
debt, corporate mezzanine, energy mezzanine opportunities and long / short high - grade and high - yield credit instruments, emerging markets equities, and (with regards to certain macroeconomic strategies) currencies, commodities and interest
rate products and their derivatives.
* Information efficiency * Economic slack * Contained inflation * Coordinated Central
Banks * The growth of China and India and their continued purchasing of US
debt * The growing perception that US dollar denominated assets are the safest assets in the world * A 30 + year trend of declining
rates that is telling us we're more adept at managing inflation with each new cycle that passes
In one paper he co-wrote in the spring of 2002, just months after he joined Goldman Sachs to lead its effort to win investment
banking business from European governments, Mr. Draghi argued that governments might use financial derivatives like interest
rate swaps «to stabilize tax revenue and avoid the sudden accumulation of
debt.»
Without a massive transfer of wealth from the state sector to the household sector it will be impossible, I would argue, for GDP growth
rates of anything above 3 - 4 % — and perhaps even less — to occur without a further unsustainable increase in
debt, whether that increase occurs inside or outside the formal
banking system and whether or not discipline has been imposed on borrowers.
Interest
rates on government
debt, too, were set by the authorities, and there were «captive market» arrangements under which
banks and other institutions were required to hold minimum amounts of government
debt.
The heavy
debt burden is one of the reasons the central
bank has been reluctant to raise borrowing costs further, after hiking interest
rates three times between July and January.
Once
bank interest
rates were free to move, it became increasingly untenable to maintain managed
rates on government
debt.
There seems nothing to be done about
banks impoverishing people by extortionate credit card
rates, junk securities and a
debt burden so heavy that it will require one bailout after another over the next few years.
The fund's index tracks the 100 largest
bank loan facilities — floating -
rate, high - yield senior
debt issued by
banks to companies.
Posted by Nick Falvo under
Bank of Canada,
banks, budgets, Conservative government, consumers, deficits, economic growth, economic models, economic thought, employment, Europe, exchange
rates, federal budget, fiscal policy, household
debt, housing, inflation, interest
rates, monetary policy, oil and gas, prices, Role of government, social indicators, tar sands, US.
Admati and Hellwig counter that the only reason stockholders demand such a high
rate of return from
banks is to compensate for the relative riskiness of
banks — and that they are risky precisely because of all the
debt they hold on their balance sheets.
With many households increasingly reliant on
debt and a lower savings
rate, some families may need to
bank the incremental income from the recent tax cut.
Posted by Arun DuBois under
banks,
debt, economic risk, financial markets, financial regulation, household
debt, housing, interest
rates.
LONDON (Reuters)- At a time when the impending withdrawal of European Central
Bank stimulus was expected to hurt southern European bond markets, so - called «peripheral» euro zone
debt continues to outperform its higher -
rated peers.