The advice on avoiding high -
yield debt needs more explanation, because bonds with high payouts are not especially sensitive to interest rate movements.
Not exact matches
Citi analyst Paul Lejuez says the company will likely
need to cut its dividend — it currently
yields 5.85 % — in order to pare down that
debt.
To fund those programs, the U.S. would
need to issue more
debt which could also send
yields higher.
As
yields on preferred shares rose over the past year and a half, many corporate issuers turned to
debt markets as a cheaper source of financing for their funding
needs.
This places the U.S. in the difficult position of having to finance an enormous volume of capital
needs from foreigners, particularly for Treasury
debt, yet without being able to offer competitive
yields or strong prospects for additional capital gains.
Moreover, even under a very stressed scenario — in which Spain is forced to finance the $ 200 - 220 billion it
needs from today until early 2014 at
yields of 8 - 9 per cent — the effect on the average interest rate of the total outstanding
debt would be limited, rising from the current 4.1 per cent to about 5 per cent.
Right now we're still working on getting out of
debt, which will
yield a higher return than investing, but soon we'll
need to consider our options to let our money grow passively.
During the life of a medium - term
debt security, the issuer may adjust the term of maturity or the nominal
yield of the bond according to the issuer's
needs or the demands of the market - a process known as shelf registration.
We strive to make the process quick and easy to
yield needed funds for one - time purchases or
debt consolidation.
A two - year commitment to a National Health Service Corps high -
need site could
yield you $ 50,000 towards your medical school
debt.
The
need for
yield is significant, much as I think it is premature to buy those junior
debts.
Mezz
debt lenders are willing to accept lower, more realistic
yields in the 10 percent to 12 percent range, which has improved liquidity for borrowers who
need extra funds, says Thornton.