Sentences with phrase «using debt leverage»

Not exact matches

For small business owners who might not have a masters degree in finance, keeping the following four things in mind will help them use debt to gain leverage, rather than getting weighed down.

Caesars Entertainment was taken private in one of the largest and ill - timed leveraged buyouts in history, and the company has struggled under the weight of the debt used to finance the move along with increased competition as more jurisdictions legalize gambling.

In other words, leveraged companies will be constrained in how they use debt expenses and losses to lower their tax bills.

Also, General Partners who have structured their fund with an SBIC license (typically a 2:1 debt to equity ratio), use the secondary market to decrease or remove leverage on the fund.

It created debt that was based on fraud, leverage, and other non-productive uses of capital: it debased the value of money.

Second, even if the bank did not own SIV debt, the use of the back - stop facility by the SIV meant that the leverage ratio of the sponsoring bank was suddenly increasing - even if the bank did not consolidate the SIV on its balance sheet at the time.

Nearly half of the debt was used to pay nearly $ 350 million in dividends to Morgan Stanley Private Equity, which acquired Tops in a leveraged buyout in 2007 and owned the company until it sold to Tops management in another leveraged buyout in late 2013.

However, Sanchez Energy's plan was to use higher oil prices to boost production and cash flow so it could support the mountain of debt it took on to complete the deal, with its aim to get leverage to less than 3.0 next year.

Banks typically issue these debt obligations to companies that have relatively low credit ratings, and these companies use the loans to finance transactions such as leveraged buyouts, mergers, acquisitions, or similar activities.

Once an economic expansion ends, however, the amount of built - up leverage (debt used to buy assets) in the financial system typically helps determine how bad a subsequent downturn might be.

«Liquidity» is defined by economists as money available in all forms to be given out as debt, ranging from credit card debt to mortgage debt to large quantities of institutional debt typically used in complex financial transactions such as highly leveraged corporate acquisitions.

A leveraged ETF is a particular kind of ETF that uses debt or derivatives to boost the potential for returns - and losses.

Some reasons to think a bear market may not be in the market's near future include low inflation and a relative lack of leverage (i.e., debt that is used to buy assets) that might be expected to exacerbate a downturn.

The three most widely used leverage ratios are the debt ratio, debt - to - equity ratio, and interest coverage ratio.

By using a combination of assets, debt, equity, and interest payments, leverage ratios are used to understand a company's ability to meet it long - term financial obligations.

Rather, my impression is that the problems at JPM may be the result of using highly leveraged, illiquid derivative transactions as a «cross-hedge,» intended to reduce the risk of default in a whole portfolio of complex positions including (but not limited to) European mortgage debt, but with the long and short portions of the position behaving unexpectedly in relation to each other.

They also have very high debts because their owners are exploiting the club and its fans in a pretty outrageous way, using (unlike either Kroenke or Usmanov) a leveraged method of ownership that sees millions disappear from the club every month.

It may be pertinent to mention that the book value of the power plant which is currently estimated at USD 325 million after five (5) years, with a life cycle of around 15 -20 years, will be handed over to the Government as a debt free asset which can be used to leverage and raise financing as a collateral or else the Government may choose to sell the operating asset to any investor who may not like to take any development risk, hence the plant being operational and in its best conditions.

But personally, even as a staunch Democrat who will likely support any policy they choose to push using the debt ceiling as leverage, I still don't like it.

Despite increase in our debt profile, it is still believed that Nigeria can borrow from the International financial institutions and use it to reflate the economy by quickly taking the advantage of the credibility of President Muhamadu Buhari which is a good leverage because some international financial institutions are ready to lend us money for infrastructural development.

To conduct the study, the researchers used stock - market data concerning 177 firms listed on the Egyptian stock exchange in early 2011, and examined daily closing prices for those firms between 2005 and 2013, as well as total firm assets and leverage (the amount of debt as a fraction of total assets).

For example, a company using 28 % debt will be said to be more leveraged than a company using 10 % debt in its capital structure.

Leverage is a term used to describe the company's current ability to pay its long - term debt.

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.

Leverage and use the equity in your home to consolidate debt or pay for major expenses with a home equity line of credit.

Golden Financial Services achieves outstanding settlements with the creditors because we have a massive number of client's debts to use as leverage.

A common term used to describe this situation would be to say that the banks were «highly leveraged,» a concept I wrote about in my earlier post Pay Down Debt or Invest?

Look at the long term solvency of a firm, which can be judged by using leverage or capital structure ratios such as Debt Equity Ratio and Debt Assets Ratio.

Asset - backed debt — loans secured by a potentially appreciating asset, such as real property, an RRSP, or a stock portfolio — can be a great way to use leverage to increase a person's net worth.

Leverage: The use of debt when purchasing investments.

Also on the list are speculative non-dividend paying stocks and people, those who use margin or debt to leverage their positions, and those who advertise their willingness to purchase certain securities: again, well outside the realm of the ordinary investor trying to create a little tax - free dividend or interest income.

He doesn't think debt should ever be used to leverage wealth.

But I'm sure debt collectors working for the credit card issuer use the security interest clause as leverage.

These are loans that are typically taken on by firms with higher existing levels of debt (hence the use of «leveraged» in the name).

Generally, as a firm's debt - to - equity ratio increases, it becomes riskier A lower debt - to - equity number means that a company is using less leverage and has a stronger equity position.

Debt can be good or bad depending on the type of business (e.g. cyclical versus stable) and the amount of leverage used.

Should the collection agency continue to report the debt on your credit reports it is time to use more leverage such as making complaints to your state's Attorney General, the Federal Trade Commission, the Consumer Financial Protection Bureau and the Better Business Bureau.

So in other words, if your debt collectors violate your rights under the FDCPA, those violations will be used as leverage when negotiating.

Basically if your creditors violate your consumer rights under this federal law and other laws, your attorney will use the violations as leverage to save you additional money, and at times even get your debt dismissed entirely.

The key lies in taking full advantage of the pre-tax conversion and the use of «good debt» versus «bad debt» over an extended period of time, plus maximizing your leverage via an instrument that will pay a solid rate of return over time.

Investment leverage, which in investment terms is just a fancy word for «debt,» can move worlds of money if used properly.

However, in order to engage in true wealth building, a proper understanding of money and financial leverage using good debt are essential.

So before you decide that you're going to budget like everyone else, use credit cards, leverage debt, or buy penny stocks weigh the risks vs rewards.

This is known as leverage, as you can use your debt to potentially multiply your money in the future.

Leverage is sensible when used to buy a fairly stable asset with expected returns greater than the cost of debt (e.g., commercial rental property) and I like your example of using leverage to expand your asset base to achieve diversification (and perhaps reduce neLeverage is sensible when used to buy a fairly stable asset with expected returns greater than the cost of debt (e.g., commercial rental property) and I like your example of using leverage to expand your asset base to achieve diversification (and perhaps reduce neleverage to expand your asset base to achieve diversification (and perhaps reduce net risk).

Of course there is bad debt, but using good debt as leverage is an important tool.

We use debt in the form of low interest mortgage and car loans and also as small business owners we use moderate leverage to maximize our returns.

A scary thought for the faint - hearted but remember the ERN family is not afraid of debt and leverage if used for a good purpose!

When fraud or debt collection violations are found debt may get settled for even less if the debt settlement company or attorney uses these violations as leverage, or with an attorney representing you the debt could get dismissed where you pay nothing besides for the attorney fees.

To lower their risk, investors use a variety of leverage ratios - including the debt,...