Sentences with phrase «riskiest bank debt»

Market turbulence sparked by the Espirito Santo group prompted Madrid - based Banco Popular Espanol SA to postpone an issue of the riskiest bank debt today.

Not exact matches

One of the practices that led to the 2008 financial crisis was certain banks bundling risky debt, selling it to clients, then betting against those same investments.

It was a time of sharply rising debt in China, and the risky shadow banking sector (i.e., off - balance sheet opaque lending) was growing rapidly, with few apparent controls.

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.

Obviously this is no easy task in China, where both the banks and the informal banking system have done a great job in recent years of hiding loan growth and keeping formal debt levels from looking to risky.

Rising U.S. debt supply and the pace of the U.S. Federal Reserve's tightening, the possibility the European Central Bank's quantitative easing program is heading towards the finish line, and concerns about the credit quality of riskier asset classes restrained investors.

Banking and lending are risky businesses, because there's always a chance the borrower will fail to repay his or her debt obligation down the road.

Junk bonds, bank loans, and other riskier types of debt have often been analogized to the canary in the coal mine when gauging the health of global markets.

Option (e) remains extremely risky given the massive levels of outstanding government debt (and potential for fiscal crisis) and therefore low in probability in our view, but the idea came to the fore in investor consciousness after the BOJ held meetings with former FOMC Chairman Bernanke, credited for applying the idea of «helicopter money» to deflation - fighting in central bank policy.

Central bank intervention in global bond markets has «crowded out» many traditional fixed income investors, driving them to seek yield and income from non-traditional and riskier asset classes such as high yield, emerging markets debt, leveraged loans and private credit.

By exchanging loans for equity that would be worth little if the companies already are struggling to pay off debts, banks would be required to sharply bump up the amount of capital they set aside against such equity holdings, which are considered more risky than loans.

«Of late, the view in financial markets has been unsettling: Banks and investors are holding riskier debt.

Outright purchases of unsecured bank debt remain highly unlikely at this stage given the conflict of interest the ECB is facing, although other targeted options could be envisaged, including a reduction in collateral haircuts, eligibility of more risky ABS tranches, or even some targeted purchases of bank loans if things get worse.

At the same time, if we look at what debt actually represents and if we look at the weaknesses of our banking sector, we could argue that it is not only about accumulation of debt or of risky investments.

The agency helps banks and credit unions screen potentially risky applicants by issuing reports that detail previous financial issues like overdrawn and closed accounts and unpaid debt.

Refinancing may mean that the customer has other debt that needs to be included in the refinance product, may have a lower paying current job that has decreased the original ability to repay the loan, has certain family or personal circumstances that have required a refinancing of the house, and other changes that may be riskier for a lending bank.

The bank says Canada's household debt - to - income ratio is near a record high and cautions stiff competition among lenders could be encouraging riskier borrowing.

We can see this dynamic at play in the figure below, which looks at the correlation between the amount of money flowing into risky assets (emerging markets, high yield debt) and the balance sheets of the four largest central banks.

As a class (think baseline information), banks are far more risky than debt - free businesses.

The key in all of this is that it has a low level of profitability, and while it did not make risky loans in the fashion of Irish, UK or Spanish banks, its funding cost is linked to the price of Italian debt and it holds Italian debt.

«The rise in debt investing is one result of the absence of other lenders (particularly in areas of the market banks may consider too risky), as well as the low return environment.

Banking and lending are risky businesses, because there's always a chance the borrower will fail to repay his or her debt obligation down the road.