Sentences with phrase «value of the debt because»

However, since they've bought it for less, they will often accept payment that's less than the face value of the debt because anything more than what they've paid is profit.

Not exact matches

Corporate debt in China exceeds 250 % of gross domestic product, and the government has put restrictions on international investment because the value of the yuan was falling so fast.
Interest rate risk is the risk that debt securities, and the Fund's net assets, may decline in value because of changes in interest rates.
Even if income does not change by much, wealth can rise or fall because of changes in the attitude of investors toward risk, and declines in the value of collateral behind debt.
Because of this, most reverse mortgage agreements have a «non-recourse» clause, which guarantees that the total cost of debt doesn't exceed the value of the home.
The reason I am not including the debt in any of the estimates of intrinsic value is because Dole, as a whole, now has total debt of $ 1.4 billion but will be able to pay off all of it if it chooses to after it receives the $ 1.7 billion from Itochu.
While the current price / peak - earnings multiple is already at an elevated level above 18, what I'll call the «P / E equivalent» multiples on other fundamentals are: 21 on the basis of book values, nearly 23 on the basis of enterprise value / EBITDA (which factors in the increasing share of debt on corporate balance sheets), over 25 on the basis of revenues, and 29 on the basis of dividends (largely because dividend payout ratios remain relatively low even on the basis of normalized earnings).
That's because, as Bloomberg Economist David Powell recently pointed out, the 191 billion euros of new loans are less than the value of bank debt scheduled to come due this quarter alone.
Sandy and all natuarl disater ultimately reduce te overall debt because of the money generated by rebuildng, the taes generated by the workers, the icrease of land value by rebuilding.
Failure shouldn't necessarily be blamed on transfers.It's part of the reason but is not the only reasons.Other clubs which can't even buy like Arsenal have won very good trophies.Even at those times we were in debt we had a good team capable of winning the EPL or winng some of the smaller trophies.But we just went on trophyless.Now we are almost debt free and we are promised glory but honestly we don't even have the hope of glory.The only thing that can save us is renewal of the mind of the manager and board.That will bring a positive change.It's only insanity to keep doing the same thing and expect different results.We have a lot to prove out there to the world because the greatness of Arsenal has really gone down in the face of the world.They only see us as a team with good football that's all.The world doubts us and we have a point to prove.The values of a club is as important as winning trophies.If not Arsenal wouldn't have been this top club that people talk about everyday were it fpr only values or trophies.They go hand in hand.However, to the world trophies are very important and that fact can not be hidden.
This is in the interest of the user, because until they pay the debt their bitcoins will have less value because they can't be spend legally until the tax burden is paid.
The only reason why the book value of the debt is $ 26 billion is because we are applying today's exchange rate which the same government succeed in collapsing to the value of the debt; and not the exchange rate at the time the money was borrowed.
Because of tax and debt limits, educational districts could not raise tax rates or borrow more money using traditional Current Interest Bonds to compensate for the loss in revenue resulting from the decline in property values.
Because adding debt against the value of your house increases your risk of default, lenders charge higher interest rates for second mortgages.
Finally, maybe because of debt ratio guidelines, or where your homes appraised value came in, it may make a lot of sense to select a no closing cost loan to make the deal work.
Because of this, most reverse mortgage agreements have a «non-recourse» clause, which guarantees that the total cost of debt doesn't exceed the value of the home.
A large credit card balance, for example, is a bad form of debt because all those gadgets and groceries you paid for lose value the instant you leave the store.
Movements in asset values are self - reinforcing not because of crowd opinion, but because of the accumulation and decumulation of debt and other financial claims.
I understand the idea of deducting the excess cash because it could be used to immediately reduce the debt and boost the equity value but... On one hand it seems logical to avoid deducting the cash that is not available for distribution (i.e. couldn't be extracted from the operations), on the other hand that is exactly the part of the cash that is less likely to bear interests.
Therefore being a homeowner reduces the risk involved in the transaction for the lender because there is a property of significant value which can be sold to repay the debt in case of default even if they have to wait for a long legal process.
Das says that because so much subprime debt is held by CDOs, there is constant risk that the value of the investment can drop or collapse....
I'm a first year student in grad school, getting my MBA and have an undergrad degree in biotech... I currently have around $ 50,000 in student debt and I have forecasted a total net present value of my debt to be around $ 75,000 when I finish... I also was foolish enough to take out an $ 10,000 loan to get a motorcycle because apparently my «debt» counts as «good credit» and since i've been dying to get a bike, they allowed me too... so now I pay off my motorcycle interest payments with student loans... interesting huh?
Credit cards are bad debt because the overwhelming majority of credit card purchases are things that lose value.
Owning your own home is a good debt is because it is an investment — it gains value instead of losing it.
a feature of certain debt instruments that allow for the estate of a deceased investor to «put back» or redeem that instrument without penalty; bonds that carry a survivor's option usually redeem for par value when the survivor's option is exercised; in either case the benefit of the survivor's option can not be realized unless the original investor in the asset has died; because investor mortality risk must be taken into account when underwriting assets that carry a survivor's option, these assets are more complex and expensive to issue; also known as a «death put»
Because all of this lending is really driven off of ratios, the amount of debt to the value of the property.
Recently, SFAS 159 has come into the news because some securities firms used it to book gains because the market value of debt that they issued had fallen.
Nationwide Mortgage Loans offers Utah homeowners the opportunity to consolidate their credit card debts and earn additional tax incentives because in most cases, mortgage interest is deductible to 100 % of your homes» appraised value.
Credit card debt is considered unsecured debt, because there is nothing of value backing the debt, only the borrower's credit history.
One of the best types of debt to take on is a mortgage because houses usually increase in value over time, unlike most other items you might buy.
A mortgage is a secured debt because the loan is backed by the value of the house itself.
That good, not just because of the time value of money, but also so we don't have to worry too much about credit risk since most of Mallinckrodt $ 5.9 billion in debt is due between 2022 and 2025.
Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.
For a start, having debt on appreciating assets such as a mortgage on your home can be a good thing because the value of your house will be increasing at a rate that is far greater than the amount of money that you could save and quite possibly you would never be able to save the amount of money required to purchase a house in the first place.
A proposal is a better option than informal debt settlement because it is binding on all your unsecured creditors once accepted by a majority of your creditors based on dollar value.
Non-recourse debt is different because the borrower is never responsible for paying more than the value of the collateral.
The ideal result should be 85 % after dividing total debts by the value of a house because that is the maximum threshold for private mortgage lenders in Cornwall, Ontario.
This can cause an inconsistency in the measurement of the debt - equity ratio because equity will usually be understated relative to debt where book values are used.
The value of a property minus its debts is important because it shows a private mortgage lender that they can recoup from the sale of a property whose owner was unable to repay.
This is because book values of assets (and hence equity) are usually lower than their market value (e.g. due to historical cost convention and impairment losses) whereas the book value of debt remains relatively close to its market value (e.g. interest on bank loan is usually adjusted periodically in line with prevailing market interest rates).
In this awkward situation you continue to produce oil, because it may keep you from defaulting on your debts, even though you are not earning what is needed to justify the GAAP book value of your firm.
Unless the fair value accounting leads a company to violate a debt covenant, typically it does not have that much effect, because it does not change the pattern of cash flows that the company will generate.
Further, the value of the service that a debt settlement company offers a consumer is speculative because, at the time that the company enrolls a consumer and collects an initial fee and obligates the consumer to pay other fees, the company does not know what terms, if any, it will be able to negotiate on behalf of the consumer.
Interest Rate Risk, which is the chance that the value of debt securities overall will decline because of rising interest rates;
Just because the stock market as a whole is overvalued and high debt levels will make growth difficult and surprises more likely to be negative than positive, it doesn't mean that there aren't plenty of stocks that are undervalued and where intrinsic value is, in fact, growing.
There's no incentive for them to cancel your miles on account of bankruptcy, and no other creditor would seek to have you sell them to repay a debt because the terms and conditions say that the points «have no cash value and are void if sold, purchased, brokered or bartered.»
Under the new plan, unsecured creditors will own approximately 32.5 % of the company; however, the Monitor believes that the company will be worth more because there is less debt, thus increasing the notional value of the unsecured creditors» share of the company.
Because about $ 32 - billion in debt will be piled on to the company to finance the buyout, the bonds that were not taken out lost a significant amount of value.
The valuation date is important because the value of assets or debts can change abruptly, affecting the equalization payment greatly.
For example, I used it in a case where someone fraudulently sold ditch company shares worth several hundred thousand dollars (in Colorado, water is gold) that he didn't own (a transaction that could not be unwound because the buyer was a bona fide purchaser for value and the seller had apparent authority as a trustee of a trust owning the shares even though he didn't have the actual authority to sell them under the trust) and then spent the money he received before he was discovered (if I recall correctly, for gambling debts).
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