The firm has warned for months that
increasing debt loads at companies could stir up trouble as interest rates move higher, making it more difficult for them to refinance.
If the new
debt increases your debt load, there is an increased risk of changing your debt to income ratio and effectively ending your chance to purchase the home you have selected.
Legal education: as the cost of legal education has
increased the debt load gets tougher to repay at salaries that may be a fraction of big city firms.
With quantitative easing, the idea is to
increase the debt load on households; with a helicopter drop of fresh cash, the idea would be to reduce the debt load that is crushing many households.
Cowen research downgraded United Technologies to market perform from outperform on Wednesday, citing the jet - engine maker's «hefty» deal price for Rockwell Collins and
increased debt load following the proposed deal.
The basic problem is that during each recession,
governments increase their debt load to stimulate the economy and maintain (or even increase) services, but rarely cut back on their debt loads or services during the prosperous times — creating a long - term upward trend in indebtedness that Tony Boeckh of The Boeckh Investment Letter calls the «debt supercycle.»
Negative cash flow from operating activities will eventually lead companies to seek funding from outside sources, either
through increased debt load — which increases interest payments, hinders growth and makes the company more vulnerable to business downturns — or by issuing stock, which dilutes ownership.
«If you have zero savings at the end of the year but you can say you got great value and did
n't increase your debt load, then that's okay.
While some observers, like my colleague Evan Niu, worry about
the increasing debt load, the acceleration in subscriber growth shows that it's worth it.
My reading about LBO ideal targets all call for steady cash flows able to support
the increased debt load even during a downturn.
With global demand slackening and faster economic growth necessary to service
an increased debt load, one can see why China's leaders are urgently trying to transition to an alternate growth model not wholly reliant on exports and internal infrastructure.
What ought to concern everyone about China is
the increased debt load the country must shoulder as economic growth moderates.
So the government has more money to spend without having
increased its debt load.
For one thing, global interest rates can not move lower indefinitely to offset ever -
increasing debt loads.
Event risk The risk that a bond's issuer undertakes a leveraged buyout, debt restructuring, merger or recapitalization that
increases its debt load, causing its bonds» values to fall, or interferes with its ability to make timely payments of interest and principal.
This is a red flag for lenders because it looks like a consumer is actively seeking to
increase their debt load.
AIG had enough cash on hand to buy back a significant number of shares without
increasing its debt load.
These expenses could
increase your debt load, rather than eliminating balances.
When purchasing a home, refinancing, or extending the life of your mortgage, your life insurance policy may not be enough to cover
the increased debt load.
Middle - income earners are being hit with income stagnation, rising housing costs, and
increasing debt loads, but there are several markets across the country that could offer relief.
Second, it takes the possibility of a leveraged buyout off the table, eliminating the potential of
an increased debt load, according to a research note by R.J. Hottovy, who covers Best Buy for Morningstar.