Sentences with phrase «risky than equity»

These schemes are less risky than equity funds and hardly get affected due to market fluctuations.

Less risky than the equity market.

In general, preferred stock is more risky than debt but less risky than equity.

For this reason, they are less risky than equity funds, but more than debt funds.

However, there are debt mutual funds available which are suitable for short term investments as they are less risky than equity mutual funds.

Warren B has previously made the point that he considers bonds to be riskier than equities over any significant timescale.

Bonds can be just as, or more risky than equities.

Not exact matches

Tech companies with no profits (or even much of a business plan) soared to extreme valuations that were justified, in part, by the belief that future profits would be made faster and that equities were less risky than in the past.

As a result, risky asset classes such as equities and commodities will be assigned much higher reserve requirements than bonds, which is why some insurance industry players are already dumping equities to hold a greater proportion of bonds.

It's a bit riskier than the 60/40 or Contrarian, because of the higher concentration of foreign equities, but its wide diversification across geographies and product groups makes it a still - safe bet.

Buffett's skepticism around the strategy stems from his view a diversified portfolio of equities progressively becomes less risky than bonds over extended periods of time.

Morgan Stanley's chief US equity strategist, Mike Wilson, however, thinks the situation is far less dire than before, and argues the big drop in short - volatility products actually helped flush out risky positions.

Private equity's illiquidity makes it riskier than publicly traded stock.

BFS Capital financing has come into the mainstream because it's more accessible than a bank loan, less expensive than equity, and less risky than bootstrapping.

My point was and is that the equity risk premium is bundled up closely with the nature of the security itself (i.e., being a publicly traded, relatively liquid investment asset called an equity, that has a very specific bundle of rights and risks attached to it), which has very different characteristics than the many other financial assets available in the economy (many of which have bundles of risk that are perceived as «riskier», and many of which are perceived as «less risky»).

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.

Investors have been taught that large - cap equities tend to be less risky investments than small - cap equities.

As you've probably figured out, mortgage REITs are more leveraged, meaning that they're riskier investments than equity REITS.

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.

As an investor's investment horizon lengthens, however, a diversified portfolio of U.S. equities becomes progressively less risky than bonds, assuming that the stocks are purchased at a sensible multiple of earnings relative to then - prevailing interest rates.

He estimated that private equity costs around five percentage points more than public financing but that it was often worth it, especially for more complicated and risky projects.

That's less than the 12.2 percent the city could have earned — another $ 1.9 billion — if it invested the money in reliable, low - cost S&P 500 Index and Core Bond funds and avoided risky, expensive hedge funds, private equity and real - estate investments.

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.

For fear of risk, if one avoids equities or equity funds (or investments which can beat inflation + taxes) then not investing sufficiently in these options can be more riskier (risk of wealth erosion) than actually investing.

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.

«As the Moreaus get closer to retirement, owning a farm is actually a lot riskier than owning a well - diversified investment portfolio of equities and bonds,» says Franklin.

Is the reason because a home equity loan is basically a second mortgage, so it is riskier than a first mortgage on a property?

As an investor's investment horizon lengthens, however, a diversified portfolio of U.S. equities becomes progressively less risky than bonds, assuming that the stocks are purchased at a sensible multiple of earnings relative to then - prevailing interest rates.

Equities are typically considered to be the riskier of the two asset types (with the exception junk bonds and other lowly rate bonds) and have traditionally generated higher returns than fixed income assets.

As a thumb of rule, companies with a debt - to - equity ratio more than 1 are risky and should be considered carefully before investing.

The bonus is that a larger down payment may give you a little more leverage when it comes to negotiating a mortgage rate, because you are less risky than someone who has very little equity in their home.

This portfolio allows the investor to be aggressive, but improve the odds of reducing their risk to permanent loss by better shielding the portfolio from stock market declines during periods when the equity markets are riskier than normal.

For them, a diversified equity portfolio, bought over time, will prove far less risky than dollar - based securities.

If they decide to use the TFSAs as a long - term savings vehicle, they can achieve the returns they need with a less risky asset mix than the typical 60 % equity to 40 % fixed income mix.

He concludes: «Managed futures are not more risky than traditional equity investment.

«In the long run, dividend - paying stocks are slightly less risky — and more rewarding — than the equity market as a whole,» he says.

They are less risky that pure equity or growth funds, which are likely to give greater returns, but more risky than pure debt plans.

Yesterday, I read a Reuters article with the title, When Diversification Fails, which pretty much says the same thing: «since the credit crisis began in August 2007, these alternatives fell in lockstep with, or sometimes faster than, equities, driving volatility higher and amplifying losses of a risky portfolio.»

Stocks Gain on Increased Demand for Risky Assets U.S. equity markets erased earlier losses triggered by the weaker than expected U.S. Non-Farm Payrolls Report to close higher for the day.

Although share prices can fluctuate, large - cap stocks are considered less risky than other equities because the companies tend to have more resources to weather economic downturns.

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).

Merryn: One of the chapters in your book, or part of one of the chapters, is about the equity risk premium, and you suggested it's higher than it should be, rationally, simply because of people thinking that stocks are much riskier than they actually are, because they look at short - term returns rather than long - term returns.

Market - linked or equity - linked GICs are a bit riskier than traditional GICs, because it is essentially part GIC, part stock market investment.

Rather than trying to select an optimal portfolio of individual equities from the thousands of securities in the market, Sharpe showed that investors should simply hold the full market (that is, all equities offered) as the risky part of their allocation.

In general, although volatility can change on any asset (i.e., TLT is a good example), fixed income assets are less risky than higher - yielding income; large cap dividend stocks are not as risky / volatile as large cap growth or small caps, which are not as risky as foreign and emerging equity and so forth.

That's why low - cost equity mutual funds or ETFs that suit your risk tolerance and time horizon are often a better bet for your TFSA than risky stocks with the potential for a big win.

Since the return on short - term cash investments is generally much less than that of riskier asset classes like equities, holding these higher cash levels can end up reducing an active manager's returns.

«It is true, of course, that owning equities for a day or a week or a year is far riskier (in both nominal and purchasing - power terms) than leaving funds in cash - equivalents.

For the purchaser, the same features that are positive for issuers make equity riskier than other ways of providing capital to a company.