Sentences with phrase «risk of defaulting»

Such borrowers are at higher risk of default and are typically charged higher interest rates and fees.

This leaves them in worse trouble than before and at greater risk of default on mortgages and other debt.

Some consumers however are at greater risk of default as illustrated in a credit history.

Yet they're still at risk of default, along with three other solar and wind farms owned by the company.

Remember, that the higher the grade has the lowest risk of default as well.

NOTE: High - yield bonds are subject to additional risks, such as increased risk of default and greater volatility, because of the lower credit quality of the issues.

Although futures contracts are oriented towards a future time point, their main purpose is to mitigate risk of default by either party in the intervening period.

Short - term bonds protect against long - term rising interest rates, while highly rated securities — AA or higher — have less risk of default.

A maturity risk premium applied to a longer - term investment reflects a higher perceived risk of default.

Risk and reward is always related, so higher yielding bonds always carry more risk of default.

For example, high - quality corporate bonds issued by established corporations earning large profits have very little risk of default.

They will also charge higher interest rates and fees to help compensate for the potential risk of default.

Therefore they consider your previous loan repayment history when measuring possible risks of default and the interest rate to assign to your loan.

Note that the elevated interest rates on credit cards are somewhat offset by the elevated risk of default.

That ensures that you'll maximize your diversification while lowering your expected risk of default.

Designed new loan criteria that enabled bank to provide profitable loans to low credit applicants while still mitigating risk of default.

The old score requirements used to be 700, but since there was a meltdown in the mortgage industry, mortgage lenders want to have more security to prevent risks of default.

Generally they are to borrowers with a higher risk of default often related to the borrower's previously poor credit history.

These bonds, however, come with the looming risk of default.

Businesses with majority owners pose the largest risk of default when things go wrong.

This program protects lenders from risk of default on fixed - rate loans of up to $ 25,000 for home improvements.

But they will require millions of consumers, who are at low risk of default, to either put off buying a home or pay unnecessarily high rates.

High yield bonds are subject to additional risks, such as increased risk of default and greater volatility because of lower credit quality of the issues.

Lower - quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

Lenders gave loans to people with poor credit and a high risk of default because central banks tried to stimulate the economy with lower interest rates and increasing demand for mortgages.

The better the grade, the more stable the issuer and the less risk of a default, but the lower the interest rate as well.

A buyer of your bond will now want a greater potential profit to reward him for the greater perceived risk of default.

Lower - quality fixed - income securities generally offer higher yields, but also carry more risk of default or price changes due to potential changes in the credit quality of the issuer.

Typically, wide corporate credit spreads indicate a riskier lending environment, as bondholders generally will only take on a greater risk of default in exchange for a greater yield.

The fact is low credit scores are no indication of risk of default, especially since many bad credit borrowers today are such only because of financial bad luck - not financial irresponsibility.

We think this would increase risk of default for the lowest income borrowers — including a disproportionate share of low - income students, women, people of color, and veterans — who would not be able to pay an additional $ 25 every month and meet their families» basic needs.

IMT works to reform mortgage underwriting and home appraisal practices to fully account for energy and to educate key stakeholders on energy efficiency valuation and innovative financing measures that can result in more energy - efficient homes and less overall energy consumption; lower utility bills for homeowners; mortgage underwriting that is more sound, with reduced risk of defaults; and the creation of green jobs in the real estate, home construction, and retrofit markets.

Insurers are also faced with risk of defaults from their customers.

For instance, there's increased risk of default if a MIC is too geographically concentrated.

When credit scores were created, FICO, a bunch of lenders, and the credit bureaus came together to figure out a better way for lenders to predict risk of default when lending.

All subprime loans function similarly because they're a loan for those borrowers with a high risk of defaulting due to low credit scores, poor or little credit history, a high debt - to - income ratio, or other factors.

Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).

There's a bigger risk of defaulting on a renovation loan when you have less money invested in your home.

The report does note that the overall effect on the economy would be muted because only mortgages that are in serious risk of default would be eligible for the program, and only a fraction of the total homes underwater in the country fit that profile.

$ 10 billion for reducing principal for borrowers who are delinquent or at imminent risk of default and are underwater (owe more than their homes are worth).

Transparency, liquidity, and lower risk of default make forex futures attractive trading vessels.

Subprime personal loans are for people with a high risk of default based on their credit score, which means obtaining an unsecured personal loan may be difficult without collateral, and the loan will generally have a high interest rate.

Short term interest rates will correct rapidly by shooting up several hundred basis points in a price - discovery «correction» that will factor in the real rate of inflation (not the rigged CPI) and the real risk of default by the U.S. Government.

Countries with growing economies and substantial assets can generally manage high levels of debt in the medium term as lenders are confident that they won't actually default, however countries perceived as being at high risk of default end up paying higher interest rates or even being unable to borrow at all.