Sentences with phrase «risk than interest»

Ultimately, today's investors get paid more for taking on credit risk than interest rate risk.

Not exact matches

Interest rates on 15 - year mortgage terms are typically lower than those on longer - term loans because the shorter duration of the loan makes it less of a risk to the lender.

Beyond then, we expect the company to sustain credit measures that are consistent with its intermediate financial risk profile, characterized by fully adjusted debt to EBITDA of 2.5x - 3.0 x, funds from operations to debt of more than 25 %, and EBITDA interest coverage of more than 5.0 x.

Subordinated debt: Has a higher interest rate than senior debt does, in exchange for slightly higher risks (since loans get paid only after senior debt is paid).

A: Microloan interest rates are much higher than typical loan rates because their risks are higher: 12.5 % to 15 % is common.

It is not in the best interest of a company to pay their employees less than fair value and risk creating high turnover.

Possible reasons for the increased lending activity include lower levels of regulation at smaller banks than at their larger counterparts, recent movement of lending staffers from large banks to small banks and an increased willingness of smaller banks to take on credit and interest risk, the report says.

In certain cases where a seller has a vested interest - such as selling to a family member - financing more than this is acceptable, but as the amount increases, so does the risk.

The difference in risk - taking between men and women is more than just interesting trivia.

Having a poor credit score will either keep you from obtaining credit altogether or place you in a high - risk category, which means that if you're approved for credit or loans, the interest rates you'll be offered will be significantly higher than someone with excellent credit.

The Department concludes that it can best protect the interests of retirement investors in receiving sound advice, provide greater certainty to the public and regulated parties, and minimize the risk of unnecessary disruption by taking a more balanced approach than simply granting a flat delay of fiduciary status and all associated obligations for a protracted period.

Paying down your loan allows you to save that amount in foregone interest, which is much better than what you'd earn today on any low - risk investment like a GIC.

And speaking of inflation, shouldn't the risk for CDs be scored less than 10 because you may lose money to inflation that may not be compensated for with the interest you receive?

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

While it's still not known when interest rates will go up and by how much, what we do know is that the bond market is at greater risk to rising interest rates than at any time in recent history.

Confronted with the choice of whether to «lean» or to «clean» — leaning against emerging financial imbalances by keeping interest rates higher than they otherwise would be or cleaning up in the event the risks they create are realized by providing stimulus — central bankers at that time generally agreed that cleaning would be best.

In terms of the interest rate risks, It's more of an opportunity cost than a real «hit from rising interest rates», assuming you hold to maturity.

I don't know exactly what's going to happen, but simple math based on the current level of interest rates leads me to believe that these risk premiums will be much wider in the future over longer time frames than they've been in the recent past.

The fund may invest in asset - backed («ABS») and mortgage - backed securities («MBS») which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other bonds.

Lower yields Treasury securities typically pay less interest than other securities in exchange for lower default or credit risk.

World growth will remain low on average but negative in the UK and Europe; price inflation will remain sufficiently subdued for a while longer so as to impose no constraint on monetary expansion; central banks will sustain a regime of negative real interest rates and rapid monetary expansion; the risk of a eurozone collapse is off the table for now; finally, stock markets should continue to perform better than expected, even though the four - year old cyclical bull market is long by historical standards.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

And did that do anything in the first place, other than to boost risk assets and «encourage» policymakers in Congress to spend at Fed - influenced low interest rates?

Variable rates currently offer lower interest rate options, resulting in additional interest savings, but keep in mind — variable rate student loans are often higher risk for borrowers than fixed interest rate student loans.

All else equal, unless it possesses some sort of major offsetting advantage that makes the risk of non-payment low, a company with a low - interest coverage ratio will almost assuredly have bad bond ratings, increasing the cost of capital; e.g., its bonds will be classified as junk bonds rather than investment grade bonds.

As a result, investors seeking additional returns from fixed - interest portfolios have been prepared to accept greater credit risk than in the past.

Regulation, risk, a low - interest - rate environment and global economic uncertainty mean treasurers are more dependent than ever before on software systems and services to help them manage their business.

Investment grade bonds are considered to be lower risk and, therefore, generally pay lower interest rates than non-investment grade bonds, though some are more highly rated than others within the category.

The PBO identified four key downside risks to the private sector forecast: global growth, especially in the U.S. could be slower than anticipated; the appreciation of the Canadian dollar could adversely affect exports; sovereign debt issues in Europe could restrain recovery there and put upward pressure on global interest rates; and the high level of household debt in Canada could restrain domestic demand.

As savers, pension funds and insurance companies sought relief from the pain of low interest rates, the issue now is «whether they ended up taking up risks that were greater than they realized,» said Donald Kohn, the Fed's former vice chairman under Bernanke.

Investing in high yield fixed income securities, otherwise known as «junk bonds», is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.

-LSB-...] shows why inflation is a bigger risk than an increase in interest rates to long maturity bond holders.

You may have more bonds in your portfolio than you are comfortable with, or your particular bond holdings may leave you more exposed to interest - rate risk than you might like.

These risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature of the restaurant industry; factors impacting our ability to drive sales growth; the impact of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack of suitable new restaurant locations; higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and marketing costs; a failure to develop and recruit effective leaders; the price and availability of key food products and utilities; shortages or interruptions in the delivery of food and other products; volatility in the market value of derivatives; general macroeconomic factors, including unemployment and interest rates; disruptions in the financial markets; risk of doing business with franchisees and vendors in foreign markets; failure to protect our service marks or other intellectual property; a possible impairment in the carrying value of our goodwill or other intangible assets; a failure of our internal controls over financial reporting or changes in accounting standards; and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.

You get analysts more interested in justifying higher price targets than in managing risk and preserving the long - term financial security of their clients.

We're more interested in capital preservation and risk management nowadays than losing our shirts to get a bigger return.

Yes the Index - linked fund is more susceptible to interest rate risk than the regular bond fund, but not by the nature of it being a linker, it's because the average duration is longer.

The uses are varied; those in an adjustable rate mortgage (ARM) can potentially hedge their interest rate risk for much cheaper than a refinancing.

The low interest rate environment may also have encouraged a shift in investments towards hedge funds as, in the past, hedge funds have achieved higher average returns than traditionally managed investments, albeit in exchange for greater risk.

Measured across all loan products, and taking into account changes in customer risk margins, however, it seems that interest rates paid on average by small businesses have increased by a little less than the rise in interest rates directly due to the tightening of monetary policy.

Lower yields - Treasury securities typically pay less interest than other securities in exchange for lower default or credit risk.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

Stronger - than - expected earnings growth of 18 % for the S&P 500 have helped stocks move higher, but potential causes of volatility, including additional tariff proposals and rising interest rates, continue to be headline risks.

Investing in currency involves additional special risks such as credit, interest rate fluctuations, derivative investment risk, and domestic and foreign inflation rates, which can be volatile and may be less liquid than other securities and more sensitive to the effect of varied economic conditions.

They entail significant risks that can include losses due to leveraging or other speculative investment practices, lack of liquidity, volatility of returns, restrictions on transferring interests in a fund, potential lack of diversification, absence and / or delay of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds.

In my opinion, higher inflation is a much bigger risk than rising interest rates when it comes to bond performance.

#TradeElite A7 — I suppose if your projections have you yielding more return than the higher interest it would still make sense; however, projections wouldn't be enough to mitigate the risk of #toohigh interest so, actual revenues, i.e. a pilot approach in - market, is recommended https://t.co/IigZtOkpxC

We found that diversified portfolios have, in fact, been less risky, but only up to a point: A portfolio that allocates 60 % or more of its investments abroad has actually taken more risk than one that doesn't diversify at all — an interesting revelation.