Sentences with phrase «rising debt costs»

However, investors are now fretting about higher interest rates, since rising debt costs could spell trouble — not least because utilities have borrowed so much money.
Meanwhile the project also had to contend with rising debt costs.

Not exact matches

As rates begin to rise again, the cost of that debt will too
Debt servicing costs will rise, too.
«I think a lot of that negative news is priced in — you have competition, you have high debt levels and you have rising costs.
Staring down tens of thousands of dollars in debt, rising mortgage costs and no foreseeable way to substantially boost their incomes, the couple decided to sell their house and rent.
Debt servicing costs would rise for the government, too, sparking a budget problem.
Thanks to rising health costs, stagnant wages and growing levels of debt — especially the $ 1.4 trillion of student loans borrowers owe — you may need to generate more income just to get by.
Without the presence of U.S. banks, the market for sovereign debt could become less liquid, and borrowing costs for governments could rise.
Within the first two years of starting FedEx, founder Frederick Smith found his company so many millions of dollars in debt, because of sharply rising fuel costs, that he was nearly ready to declare bankruptcy.
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.
Plenty of ink has been spilled on the root causes behind this troubling phenomenon, from high student debt to the rising costs of healthcare.
The report noted that one area that has worsened in the last 30 years has been the rising cost of housing, which has been attributed to bigger mortgages and more debt.
With credit card debt rising steadily, the quarter - percentage - point increase in the federal funds rate will cost consumers roughly $ 1.6 billion in extra finance charges in 2017, according to a WalletHub analysis.
She says that, between student debt and a rising cost of living, millennials are under a tremendous amount of financial pressure.
The Bank for International Settlements singled out Canada for its accelerated growth in credit relative to GDP and for its susceptibility to a sharp rise in debt - service costs.
Meanwhile, debt servicing costs already consume an additional 10 % and are likely to rise.
This is because the province has accumulated a large public debt that given the prospects for an economic slowdown and / or rising interest rates will potentially increase fiscal pressure via debt service costs which in 2016 - 17 totaled $ 11.7 billion or just over 8 percent of total government spending.
When it comes to credit card debt, some people think it's the result of overspending, while others blame it on the rising cost of living for necessities.
Debt service costs have risen to 15 percent of GDP — just short of record highs — according to CLSA.
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.
But with provincial deficits swelling from coast to coast this year, and rising health care costs expected to ravage provincial coffers in the coming decades, federal figures are starting to paint an increasingly misleading portrait of Canada's government debt situation.
This would sharply enhance growth rates during the expansion phase, much like margin borrowing enhances returns when market prices are rising faster than the debt servicing costs, but at the expense of sub-par performance once conditions reverse.
As the gap widens, it creates rising uncertainty about how excess debt servicing costs will ultimately be allocated, and at the point at which this uncertainty is high enough to alter materially the behavior of economic agents, and so lower the net asset value of the economic entity, the borrowing country has «excessive» debt.
To some extent, these concerns are allayed by the existence of natural hedges, such as foreign currency export income, although rising US dollar - denominated debt servicing costs at a time of falling US dollar - denominated commodity revenues would obviously be problematic.
In addition, the mortgage market looks set for a particularly heavy year of renewals in an environment where debt - servicing costs are already rising at the fastest pace in a decade.
As the rouble falls, the cost of servicing its mortgage debt will rise.
Rising rates also will increase debt costs to the federal government, which continues to rack up deficits and borrowing with reckless abandon.
The vast majority of spending growth over the next decade is the result of rising costs for health care, Social Security, and interest on the debt.
«The cost of debt is still very low for most issuers, animal spirits have been rising, and tax cuts may drive confidence even higher.
Unless China is able, very improbably as I have argued, to reform the financial sector deeply enough and quickly enough, the cost of a more competitive (i.e. more highly subsidized) export sector is ultimately a rise in the debt burden, unless of course Beijing is willing to tolerate higher unemployment or to implement greater wealth transfers from the state to the household sector.
China's public - sector investment, in other words, is value destroying, and because it is funded by debt, additional investment causes China's real debt servicing costs to rise faster than its real debt servicing capacity.
When China was underinvested, investments were nearly always productive, and so the ability to ignore budget constraints and hide the costs of nonproductive investment in the form of rising debt had little effect on the GDP data — or, to put it differently, rising debt did not reflect a rising debt burden.
Since U.S. government debt is not long - term in nature, higher refinancing costs are extremely vulnerable to rising interest rates.
The cost of insuring senior financial debt in Europe rose for a fifth day.
The cost of financing those debts is rising fast, with the recent sell - off in Portuguese sovereign bonds pushing yields to levels not seen since October 2014.
In addition to a weaker euro, which helps fuel its export - oriented economy, the cost of financing its sovereign debt relative to its existing debt continues to fall while the smaller countries struggle with rising financing costs.
Fixing our debt will now require reversing the harm that has already been done with tax cuts and spending increases, in addition to confronting the rising costs of Social Security and Medicare with spending changes and / or additional revenue.
In the 1980s, when the sharp rises in foreign debt and its servicing costs were occurring, the Australian economic debate was, not surprisingly, pre-occupied with these issues.
For many of them, thanks to the rising cost of tuition, there will be an extra weight around their necks in the form of student debt.
The cost of protecting the company's subordinated debt from default for five years using credit - default swaps has more than doubled since the end of 2015, rising to 438 basis points, a four - year high, from 187.
Retirement these days seems nearly impossible for anyone before the age of 50: high debt volumes, a devaluing currency, a rising cost of living and a lack of valuable, genuine assets.
The stagnation of wages among low - and middle - income families and rising costs, of housing in particular, has led to record levels of consumer debt.
Ratings agencies are downgrading the debt of the Spanish banking sector, causing borrowing costs to rise, which may trigger further negative perceptions.
While falling world interest rates have reduced the servicing cost of foreign debt over the past two years, this has been offset by rising dividend payments on foreign holdings of Australian equity, reflecting the strong profit growth of Australian companies throughout this period.
This likely doesn't bode well for future S&P 500 returns, especially when interest rates rise - increasing the cost of debt repayment and adjusting expected returns and valuations.
In addition, rising equity values for Utilities offsets the advantages that cheap debt has for their cost of capital.
With the cost of college on the rise, it's little surprise that student loan debt is on the rise, too.
The rising cost of college has added an additional financial burden for many parents who don't want to see their children suffer under a mountain of student loan debt.
The economy shrank by 2.3 % last year, the cost of two - year government debt tripled in a week, and 10 - year yields rose above 6 %.
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