Sentences with phrase «risky than a debt»

In general, preferred stock is more risky than debt but less risky than equity.
While debt consolidation might not save you as much money, it can keep your credit score in tact and is less risky than debt settlement or bankruptcy.
As a class (think baseline information), banks are far more risky than debt - free businesses.
However, it is riskier than debt.
The risk associated with equity mutual funds are more than hybrid mutual funds and both are relatively more risky than a debt fund.

Not exact matches

The more complex debt market has worked wonders in the past few years allowing somewhat riskier companies like Valeant amass more debt, at lower rates, than they would have been able to past.
You could argue that P2P is much riskier than venture debt offerings.
And these deficits are now being financed in riskier ways: more debt than equity; more short - term debt than long - term debt; more foreign - currency debt than local - currency debt; and more financing from fickle cross-border interbank flows.
Because Treasuries are safe, they offer a lower return than riskier debt instruments, such as corporate bonds.
ETNs are riskier than ordinary unsecured debt securities and offer no principal protection.
These bonds are considered risky investments and tend to pay higher interest rates than Investment grade debt.
These are simpler and cheaper than other forms of financing, but they are debt so can be risky;
A company with debts higher than three times yearly profit is already considered as highly leveraged and risky.
AIG was a decidedly more risky investment when he left than in the late 80s, when the balance sheet had virtually no debt.
This article illustrates how one of the most popular financial metrics, the debt - to - equity ratio, can sometimes make an investment appear much riskier than it actually is.
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.
Originality clearly wasn't the main driving force behind the overall plotline (it owes more than a minor debt to Risky Business), but at the same time this is much more than just 110 minutes of schoolboy ogle - fodder.
DALLAS — The Texas Permanent School Fund that guarantees more than $ 70 billion of public school construction bonds retains top credit ratings despite its increasing support for riskier charter school debt, analysts said.
The same principle applies in reverse, however, making these leveraged buyouts potentially very risky; if the acquired company's ROA is lower than the cost of the debt used to buy it, then the private equity fund's ROE is less than if hadn't used debt.
Because of its subordinate position, the mezzanine loan assumes a higher risk profile than senior debt but retains a less risky position than preferred equity.
Financing long - term assets with short - term debt is even cheaper and riskier than financing with debt that matches the term of the asset.
The Securities are riskier than ordinary unsecured debt securities.
Mortgages are an example of secured debts, which are considered less risky than personal loans and credit cards.
However, there are debt mutual funds available which are suitable for short term investments as they are less risky than equity mutual funds.
Bonds are considered less risky because they are a debt the company owes you and pays back, rather than relying on the whims of the market.
Debt does not necessarily mean high risk, and investing in index funds over a long period is less risky than your home.
As a thumb of rule, companies with a debt - to - equity ratio more than 1 are risky and should be considered carefully before investing.
For this reason, they are less risky than equity funds, but more than debt funds.
Recent debt obligations are riskier than older debt the consumer has been paying for some time.
You must make sure that the interest payable on your new consolidated debt is fixed at a rate that you can budget for, as it is too risky getting a variable interest rate loan where the rates could rise and leave you in a more difficult position than you would have been had you not consolidated.
Bonds are considered less risky than stocks because bond prices have historically been more stable and because bond issuers promise to repay the debt to the bondholders at maturity.
This is on top of the problem that when high - quality long interest rates are so low, it is typically a bad time to try to make money in financial assets, because returns on risky assets are typically only 0 - 2 % percent higher than the yield on long BBB / Baa debt over the long run.
Corporate bonds are considered to be riskier than government bonds because the investment grade rating of corporate bonds varies depending on the debt issuance and revenue of the company.
They are less risky that pure equity or growth funds, which are likely to give greater returns, but more risky than pure debt plans.
Never forget a risky asset's % return may turn out to be lower than the debt's % cost, lowering your returns.
When you implicitly and explicitly suggest that rates will remain lower for longer, people begin to count on risky assets being safer than they are; similarly, the size of debts can become so large that those who trusted the policy makers lose the ability to service the debt (let alone pay it back) when borrowing costs go up.
In markets for government debt, favoring the a priori safe bet of high - debt - issuer countries, such as the United States, Japan, and developed European nations, can be far riskier to an investor's wealth than interest - rate volatility or credit ratings may suggest.
AIG was a decidedly more risky investment when he left than in the late 80s, when the balance sheet had virtually no debt.
More importantly, you'll learn how to assess your current debt situation to see if you are engaged in risky financial behavior that might push you deeper into debt than you want to be.
This is your debt to credit ratio, and if you have used all of the credit available to you, lenders consider you riskier than someone who has managed their money better and kept their debt low in relation to how much they could be spending.
All else being equal, stocks with high debt / total cap ratios are generally riskier than those with low debt / total cap ratios.
Margin debt on an equity brokerage account works in a similar fashion, but usually a 50 % down payment is needed (less risky than real estate).
Government student loans are especially difficult to discharge in bankruptcy, so it is a slightly riskier than average type of debt.
This is so much less risky for me than paying down as much debt each month and then getting hit in the face with a big expense.
Unsecured debts are thus riskier for the lender than secured debts, and will usually carry much higher interest rates.
A company with debts higher than three times yearly profit is already considered as highly leveraged and risky.
High interest debt is much riskier than low interest debt, so determining the type of debt you have will help you figure out if paying it off first is the best strategy for you, explains Felicia Hemby, Certified Financial Educator at cwoenterprise.com.
Because of this unique degree of safety, interest rates are generally lower for this class of secruities than for other widely traded debt, riskier debt securities such as corporate bonds.
Financing with short - term dbet is almost always more risky than financing with short - term debt.
Perhaps it's also awkward for the Fed to declare that agency debt is riskier than Treasury debt and yet treat the two as equivalent for so many purposes.
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