Sentences with phrase «taking credit risk»

Provide returns that exceed the inflation rate, without taking any credit risk (sovereign risk only) and maintaining a low probability of negative return in the short term.

Investors in HXT are taking a credit risk on the payments that the ETF expects to receive from its counterparties.

Beyond that, Reinhart points to the ways that the Fed is taking credit risk onto its balance sheet, which limits its flexibility.

Sometimes this means taking credit risk.

Investors increasing their current yield by taking credit risk in junk bonds have recently learned a similar lesson.

But if you have recently been denied credit, it's an indication the lending system sees you as damaged goods that they are unwilling to take a credit risk on.

An investor looking to take credit risk would be better off in emerging markets, he said.

Despite these gyrations in yields on government bonds, the willingness to take credit risk has not diminished.

But if they want to make money, the banks have to take credit risk (something the Fed is trying to stimulate), and / or interest rate rate risk (borrow short, lend long, negative convexity, etc).

It does not take credit risk and have around 89 % of the portfolio in AAA rated instruments and rest in AA rated ones.

We took credit risk, but it wasn't in U.S. high - yield corporate bonds.

After 9/11, and and before the merger was complete on 9/30/2001, our investment team got together and came to an unusual conclusion — 9/11 would have little independent impact on the credit markets, so be willing to take credit risk where it is not well - understood by the market.

The best a corporate bond manager can do is to play it safe with spreads so tight, and wait for a better day to take credit risk.

Gardner said that if you think of the reasons behind why lenders implement overlays, it isn't always due to the fact that they worry about defaulting since they actually don't take the credit risk.

Not exact matches

The risk of having the governing party take credit for NDP ideas won't be the only concern Horwath will have to consider.

When you really have this feeling that you're both in it together and you're pushing and pulling one another, you're open to taking risks, you're brave, you're open to innovation, and you're not taking credit for each other's — together you're making things better.

And especially in the case of a business or a borrower who has lower credit scores, it's usually higher interest rates and fees that compensate for the higher risk the lender is taking.

She spotlights efforts by credit reporting agency Equifax and LexisNexis Risk Solutions, which helps consumers assess financial risk, to mix up the way we calculate credit scores to take into consideration one's history of paying utility, cable, and cell - phone biRisk Solutions, which helps consumers assess financial risk, to mix up the way we calculate credit scores to take into consideration one's history of paying utility, cable, and cell - phone birisk, to mix up the way we calculate credit scores to take into consideration one's history of paying utility, cable, and cell - phone bills.

«It's more market risk than many people might be used to taking, but I don't think it's worse than duration or credit risk currently,» he said.

Ron Carson, a CFP and CEO of Carson Wealth Management Group, thinks conservative investors should not take on credit risk given the dicey economy.

Analysts and defectors themselves often credit South Korean TV shows or movies in particular with the ability to change people's thinking inside North Korea; some initiatives take great risks to smuggle outside information and entertainment back in, particularly on flash drives.

Once you've earned a degree — and likely taken employment somewhere — you become less of a credit risk.

«So, unless you're willing to take that personal risk of saying «I'm putting my credit on the line» it may not be one hundred percent the way to go,» she says.

Whether it's a mom who owns a cupcake store that might take credit cards or a consulting firm that deals with healthcare data, the risk is incredible.

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.

Any time you open up a new account, you risk taking a small hit to your credit score.

Because they haven't had the means to set up a program, lend the funds, take on the additional risk and comply with consumer credit laws.

The lender is taking on less risk, so they will usually grant a higher credit maximum at a lower rate for secured lines.

We prefer to take economic risk through equities rather than credit against a backdrop of low absolute yields, tights spreads and rising rates.

If their credit card information and social security number are just one click away from publicity, then why take the risk?

After all, when a central bank influences the cost of financing through changes in the policy interest rate, its actions affect the economy by changing asset prices, encouraging or discouraging risk taking, and influencing credit flows.

When it comes time to apply for your first credit card, you'll need to prove to a lender that you're worth the risk that they're taking on in giving you a credit card.

Whether the supply limitation takes place through credit refusals or higher risk premia built into lending rates, the outcome is the same.

If you have a stable job and a strong income, many credit card companies will be willing to take a small risk and give you a small credit limit.

As do foreign investors in local currency debt that want exposure to domestic credit and interest rates, but not exchange rates, as well as other non-residents who are willing and able to take on exchange rate risk.

In Australia, the lifting of interest rates and credit controls, and increased competition from foreign banks, contributed to a surge in credit growth, and a substantial increase in risk taking in the financial sector, and in the community generally.

A recent survey of institutional investors in Australia found that exposure to credit risk had increased in the first half of 1999 and that about half of the respondents intended to take on additional credit risk in their bond portfolios over the remainder of 1999.

We still see a role for credit in bond portfolios but, overall, prefer to take economic risk in equities, as reflected in our recent downgrade of U.S. credit.

Bank loans offer relative safety from interest rate risk because the coupons are reset periodically, but they do take significant credit risk.

In so doing, this flow of saving helped to fuel a credit boom and risk - taking in major advanced economies, particularly in the United States, thereby sowing the seeds of the global financial crisis.

During the credit boom, finance is available on easy terms and the economy builds up excesses in terms of leverage and risk - taking.

Economic expansion supports both equities and credit, but we prefer to take risk in equities, particularly non-U.S. stocks.

Hence policies that foster financial innovation and spur the usage of credit default swaps are not necessarily associated with more moral hazardous bank risk - taking, but rather with more risk mitigation.

Because the purpose of a bond ladder is to provide predictable income over a long period of time, taking excessive amounts of credit risk probably doesn't make sense.

This poses a dilemma for investors: Accept lower returns or dial up risk by taking more equity, credit and interest rate exposure.

Rates on government student loans are always fixed, and don't take into account the credit risk posed by the borrower, however you can take a look at what the average student loan interest rate is.

Non-recourse factoring means we take on the credit risk if the bill is not paid.

Suffice it to say that an improvement in market internals and credit spreads would significantly ease our concerns about immediate downside risks, and we'll take that evidence as it arrives.

When you invest in credit, you are typically compensated for taking more risk via a higher yield.

As they have done so, credit spreads on these assets have declined, which means that investors are receiving less compensation for the risk they are taking on.