What this means from a macro standpoint is the cost of money is getting much more expensive for a society that's very levered and a country that's very levered.
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At the close, the combination would leave the company five times levered and three times levered within 24 months, though the tie-up is expected to leave its debt investment grade.
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The company would also be more levered as a result.
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He levered himself upright, crept out from behind the powerjack.
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Those were exposed to market moves - and were far more levered.
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"[Current action] is so levered towards calls" in the GLD, RiskReversal.
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These highly levered funds were chock full of Puerto Rico bonds.
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What I don't think you do is buy a levered beta.
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This is all in the context of a very levered world.
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Levered across the energy chain from upstream to midstream to downstream 3.
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On a standalone basis, Birch is currently levered around 4.4 times, based on US$100m-US$110m of last 12 months' Ebitda, while Fusion is levered around nine times, based on roughly US$11m of last 12 months' Ebitda.
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"Charter shares offer investors a rare levered equity growth story," the note said.
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With that, the cannabis industry is over-regulated and under-levered, he said.
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"The first place that's going to feel that is the levered credit market."
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He captured a loose ball, pivoted, and levered the ball past the goalie.
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" He added: "We utilize 'plain vanilla' VIX ETFs (not inverse and not levered).
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And the most levered companies are usually the ones that are the best bets.
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But it is still levered at a much higher ratio than many other banks.
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Now we're about to see over-levered companies blow up all over the place.
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When the market is this levered, even tiny events can trigger a big avalanche.
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"The reason (closed-end funds) go down faster is because they're levered," said Brenner.
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They levered up so much that 50% of the market is now rated BBB.
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WE'RE LEVERED AND WELL CONTINUE TO BE LEVERED IT WILL GIVE US AN INCREMENTAL CAPACITY BUT THE TERRITORIAL TAX SYSTEM JUST GIVES US MORE FLEXIBILITY TO MOVE CASH AROUND AS WE NEED IT DEPENDING WHERE WE NEED TO PUT IT TO USE.
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They're the most levered developed country in the world, they're running out of their reserves.
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Powell noted that individual businesses that have levered up do face risks of financial strain.
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The Maverick Fund LDC lost 10.6 percent and the Maverick Levered fund fell 20.9 percent.
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Two men at the bottom levered frantically at something protruding from water puckered with raindrops.
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FABER: YEAH, WHEREAS YOU ARE LEVERED AT ABOUT ONE AND A HALF TO TWO TIMES.
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That lack of panic is because as an economy, much less levered than we were.
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In absence of this data, feels like a levered bet on US real estate market.
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We know that there are levered entities and this is something that's going to happen.
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Domestic growth levered to small business — I think that's precisely where you need to be.
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I see a lot of companies that are levered to the enterprise not doing well.
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Because I like gaming companies that are not levered to China, and Boyd Gaming certainly isn't.
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Doubts about indebtedness also increased: a record share of surveyed investors said companies are excessively levered.
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" United Parcel Service: "UPS is getting its act together and they are levered to e-commerce.
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His grandfather sat down on a large rock and levered a single round into the Marlin.
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The Russell 2000, which holds 2,000 small caps, is 2.5 times more levered than the , said Bell.
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That could have major implications on the global economy, which is levered in many ways to China.
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Helping the cause we have an investor base which does not seem highly-levered or 'risked up.
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All three stocks are highly levered to raw energy prices, which explains their horrific slides in 2015.
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But his levered sexual capital isn't spent on sex; instead, it's used to extract respect from Affleck.
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ENR is a highly-levered deal stock in a "risk-off" tape; however, battery fundamentals remain strong, mgmt.
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Despite sluggish loan growth, deposit growth continues to be strong as consumers and businesses remain relatively less levered.
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Read More The problem with the commodity bounce: 'There's no juice there' They are also, well, highly levered.
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"I think the big theme is companies have really over-levered themselves," Moody's analyst Christina Boni told CNBC.
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Its business is levered to increasing homes' values, a driver that Amazon would be hard-pressed to challenge.
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"I think three, four years from now [Citigroup] will be levered 13 [or] 14 to 1," he said.
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The stock market's sensitivity to a 3 percent yield on the 10-year Treasury also suggests less an inflation scare than some pockets of the market that are so highly levered (or reliant on low rates) that even historically low rates can cause the unwinding of overcrowded and levered trades.
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"The problem is the obvious consolidators are too levered to do anything," said Randall Stanicky, an analyst at RBC.
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Cramer said the luxury jewelry retailer is under better management now, but is levered to a strong American dollar.
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Finally, the pizza is levered up into the dome to get its characteristic leopard-spot charring on the cornicione.
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" But Gross said "our highly levered financial system is like a truckload of nitro glycerin on a bumpy road.
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This falls within the US leveraged lending guidelines, which raises red flags when deals are levered over 6.0 times.
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The fund manager said Rallye owns 50.1 percent of a levered, or highly indebted, French grocer under competitive pressure.
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"Fed tightening, U.S. decoupling, flattening yield curve, collapsing emerging markets, underperforming levered quant strategies ... all echo 2003," they said.
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The guard, who had been lounging on a woven mat in the shade, levered himself upright on wiry arms.
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The strategists also looked at those that have over 100% payout ratio and are more levered than industry peers.
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To find the stocks most levered to the commodity, CNBC Pro used Kensho, a quantitative tool used by hedge funds.
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He explained that whenever a correction comes, it's the companies with levered balance sheets that he would be worried about.
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Investment banks as they compete with non-traditional lenders for underwriting business with highly levered issuers Source text for Eikon:
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Deluard notes that such strong growth seemed natural for companies levered to millennial preferences like binge-watching shows, for example.
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To find the stocks most levered to the commodity, CNBC PRO used Kensho, a quantitative tool used by hedge funds.
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Contrast that with highly levered players like Norwegian Air, which has no such buffer – it has only hedged 15 percent.
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Add in the recovery of commodity prices, which many EMs are levered to, and the economic picture looks very good.
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The next morning, a dentist levered my teeth back into place with a tongue depressor and cemented them in line.
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BECKY QUICK: How did you have the self-discipline to not go ahead and get levered up in those situations?
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Trading algorithms and levered fund products may have separated this market from past historical patterns, causing moves to be exaggerated.
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"While governments and the U.S. Treasury can afford the additional expense, levered corporations and individuals in many cases cannot," he said.
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Permira Debt Managers offers both levered and unlevered sleeves to investors, but the exposure is to the same pool of assets.
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The lower levered investment grade secured piece would be rated around two notches higher at double B than higher-yielding bonds.
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Kellogg (BBB/Stable) had annual revenue of $13 billion and was levered at 0003x total Debt/EBITDA as of December 2016.
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Mondelez (BBB/Stable) had annual revenue of $25.9 billion and was levered at 3.7x total Debt/EBITDA as of December 2016.
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"Apart from the dislocation in short-term rates, the macro landscape is growing increasingly unfavorable for highly levered companies," Snider wrote.
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In times of volatility, do they know these levered products can cause as much loss as they did on February 5?
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There is a concern out there among many that the ETF market unto itself is dangerous, especially the levered ETF market.
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"While governments and the U.S. Treasury can afford the additional expense, levered corporations and individuals in many cases cannot," Gross said.
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The technician started with the daily chart of Centene, a Medicare and Medicaid provider heavily levered to federal health care spending.
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In one year, we were below 3.5 times levered and we're now at a trailing 2.9, $3 billion in free cash flow.
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It turned out to be a little bit more levered to oil and gas than we thought, versus being a toll road.
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Because the firm has levered itself up a bit, it's selling some assets to reduce debt on its balance sheets, he noted.
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A highly levered economic system is dependent on credit creation for its stability and longevity, and now it is growing sub-optimally.
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This funding level will move the needle on stocks levered to federal infrastructure spending, but it will not be a macro event.
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"Our thesis is two-fold: copper is highly levered to macro sentiment and copper equities offer significant upside potential," the analyst said.
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General Mills (BBB+/ Negative) had annual revenue of $15.6 billion and was levered at 2.8x total Debt/EBITDA as of May 2017.
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"But this quarter, Seagate gave you some encouraging signs about its data center business levered to its biggest disk drives, " Cramer said.
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High Leverage Post Transaction: Fitch expects ABILITY will initially be levered 8x pro forma for the recapitalization and dividend to its shareholders.
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Market events in 2018 include Federal Reserve tightening, the U.S. decoupling from other economies, collapsing emerging markets and outperforming levered quant funds.
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To go private, Nordstrom needs to prove it will continue to have plenty of cash on hand to support a levered business.
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That the president also levered Christine Lagarde, an economically doveish Frenchwoman, into the presidency of the European Central Bank also helps him.
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CNBC's Jim Cramer says banks earnings showed that the big banks are not as levered to the trade war as most thought.
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The loan's rating is hamstrung by a capital structure that is roughly 299.5 times levered on an adjusted debt-to-Ebitda basis.
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Some, however, attribute the stalled deals to the summer slowdown, and renewed discipline from investors increasingly wary of levered, single B-rated borrowers.
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This is what aerospace engineers call a "semi-levered" design and is a nod to two bigger jets: the 210 and 2321-97.
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Attacks on Trump's treatment of illegal immigrant workers, or preference of Chinese steel were clearly levered in, but no less effective for it.
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|
" Spirit AeroSystems: "Spirit is directly related to the Boeing situation and, therefore, being levered to Boeing right now is a bad thing, too.
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|
Like other sector peers, Synlab is highly levered (FFO adjusted gross leverage at above 8.0x in 2016), which is a key rating constraint.
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It is currently levered at 7.9 times EBITDA, which led Moody's Investors Service to downgrade its corporate family rating to Caa1 in March.
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Winoker's outlook has GE paying down $5.4 billion in debt and obligations and transferring about $21 billion in cash to heavily levered GE Capital.
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Investors should seek the stocks of companies "highly levered" to a weaker dollar, rising oil, and rallying junk bonds,he wrote in Friday's note.
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"I'm used to seeing these guys cut numbers in a downturn because they're levered to everything from planes, to cars, to buildings," Cramer said.
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It is levered at roughly four times EBITDA and has $3 billion of debt coming due in 2020, which may have to be refinanced.
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History: Private equity firm Arlington Capital Partners bought Daily Racing Form in a secondary buyout for a highly-levered $170-$190 million in 2007.
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"You've seen how the high-yield retail sector has reacted, and this is basically taking a levered bet on the UK consumer," he said.
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Another high-risk, high-yield investment that Saut likes is midstream and downstream master limited partnerships that aren't levered to the price of oil.
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|
Oil dropped and took a good part of the market with it, notably bank stocks that now seem heavily levered to energy loan exposure.
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"While they may be 'dry' in nature, we argue such questions are extremely important for a highly-levered and cash-hungry company," Jonas said.
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|
The Maverick LDC, the Maverick Levered, and the Maverick Long Enhanced posted returns of 10.4%, 20.4%, and 23.4%, respectively, through the end of September.
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Private debt funds typically offer two options of levered and unlevered sleeves for investors reluctant to expose themselves to the extra layer of risk.
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He is concerned if the market falls, levered investors will begin "selling into market weakness to cut losses" just like what happened in 1987.
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This could be because levered US corporates have used their debt in ways that aren't productive for the economy and don't contribute to corporate profitability.
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"They're losing money on every installation and making it up on volume and that's a problem when you have a levered balance sheet," Chanos said.
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But the lack of an "investment company" label has never stopped SoftBank from pursuing aggressive expansion with a highly levered balance sheet in the past.
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"Marathon Oil remains one of the most oil levered of the large cap US oils," analyst Doug Leggate wrote in a note to clients Tuesday.
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|
The Offshore Fund lost 0.6 percent and the levered Ultra Fund was off 1.5 percent, according to a letter he sent last week to clients.
|
|
" Jonas added that while such questions may seem "dry," as Musk called them, they are "extremely important for a highly levered and cash hungry company.
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Until then, any deal committed to by a European bank can be upheld, which could prompt a flood of highly levered deals,the sources said.
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|
Large independent producers such as EOG Resources (EOG) and Devon Energy (DVN) are also somewhat levered to prices because they only produce the raw commodity.
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Even at leverage of 2:1, market participants note that BDCs would be one of the lowest and most conservatively levered vehicles in the market.
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While he isn't calling a correction any time soon, O'Leary said that he is gravitating toward companies that are less levered and have more cash flow.
|
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Indeed, shopping sprees at Campbell, ConAgra and General Mills have made those companies more levered than Kraft Heinz, according to Sanford C Bernstein, a research firm.
|
|
"Years of lowering their cost structure and focusing on the oil levered plays with larger margins (have) come to fruition," said MUFG Securities analyst Michael McAllister.
|
|
The funds, which were not registered with the SEC, were highly levered and concentrated largely in Puerto Rico bonds, which became practically worthless in recent years.
|
|
Now some managers are worried that the market has got ahead of itself, with little discrimination between highly levered companies and those with strong balance sheets.
|
|
So what airlines will do is drastically reduce schedules, start cost restructuring measures and then of course you're looking at who is levered in what way.
|
|
The current situation is like a similar version of what happened in 2008 after hedge funds levered up — borrowed money — to bet on mortgage-backed bonds.
|
|
Importantly, highly levered banks and financial firms are excluded from a provision in the current House tax plan, which eliminates the deductibility of corporate interest expense.
|
|
Because the financial system is not as levered as it was, Bridgewater does not expect a financial crisis such as the one experienced in 2008, he said.
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|
"Deutsche Bank is going through some volatility but their leadership in levered finance has been consistent," said Michael Buchanan, deputy chief investment officer at Western Asset Management.
|
|
Who would have thought of that [CEO Bob] Dudley had put together a company that I thought wasn't nearly as levered to the daily price of oil.
|
|
One can be a tremendous problem at distance, while the other is a nightmare in close, a double-edged advantage to be levered against the smaller man.
|
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Buy 3-year credit default swaps on Rallye (a negative bet on the company's bonds) Rallye "is a margin loan on a levered grocery conglomerate," he said.
|
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Although CPA's financing is highly levered, the company is performing strongly and has around £120m of cash flow per year and Ebitda of £9503m, the sources said.
|
|
Recent checks with industry contacts, located in regions highly levered to fracking/drilling, confirmed healthy underlying demand trends and higher-than-expected fleet utilization levels during CY4Q.
|
|
And if so, if it is a democratic state, then the final conclusion in this kind of dispute can only be levered by trial, by the court.
|
|
" Skyworks Solutions: "Why would we want to be in Skyworks, which is too levered to cellphones, when we could be in NXPI, which we had earlier this week.
|
|
He believes that when the law was repealed, investment banks massively levered up to compete with the bigger banks, which then contributed to the financial crisis in 2008.
|
|
"The correlation between infrastructure spending and equity returns has deteriorated in recent years, but candidates' outsized plans could still be a tailwind for infrastructure-levered stocks," he wrote.
|
|
"Clearly it's levered to the global macroeconomic backdrop, but against that they've done a great job in terms of winding down Citi Holdings, their bad bank," he said.
|
|
While they may be 'dry' in nature, we argue such questions are extremely important for a highly levered and cash hungry company with 2025 bonds trading at 89.
|
|
In his draft of the paper, Annese speculated that my grandfather had created the lesion when he levered up Henry's frontal lobes to access the medial temporal lobes.
|
|
Some risk-taking traders pounced on a very short-term market bet and levered their returns via an all or nothing options trade expiring in just a single day.
|
|
"There are far more negative people out there than there are positive people in the market, and I still think people are under-levered and underweight," he said Thursday.
|
|
In the first quarter, the worst-performing big exchange-traded product has been UGAZ, a levered natural gas play from VelocityShares that has lost more than half its value.
|
|
Kraft Heinz (BBB-/Stable) had annual revenue of $26 billion, industry-leading EBITDA margin of approximately 29%, and was levered at 4.3x total Debt/EBITDA as of December 2016.
|
|
While still highly levered, Fitch expects Rumo to embark on a fast deleverage trend following the company's ongoing gains of scale, improving operating profitability and the planned capital injection.
|
|
"My view is [that there is] too much debt here and CVS winds up being levered nearly 5x to get this done," said Holz in a note to clients.
|
|
Deutsche Bank has €2842 billion ($2220 billion) in equity that supports assets of €25 trillion ($1003 trillion), which mean it is levered at a ratio of 2100 to 242.
|
|
Honeywell, 3M and Caterpillar also traded higher as much as 3%, although many investors think those companies are more levered to the Chinese economy than in reality, he said.
|
|
A 2014 study found that Chinese management teams have inconsequential ownership in companies they manage, balance sheets are levered, dividend payouts are low, and shareholder rights enforcement is weak.
|
|
Until then, what we know is that PetSmart de-levered a bit from its original 2014 buyout, from 6.4x EBITDA down to 5.6X after a dividend recap in early 2016.
|
|
IF BANKS WERE MUCH BETTER CAPITALIZED AND MUCH LESS LEVERED THAN THEY USED TO BE, YOU WOULD EXPECT THAT YOU WOULD SEE THAT THEIR EQUITY WOULD BECOME MUCH LESS VOLATILE.
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|
He also thinks master limited partnerships, most of which are not levered to the price of oil, have been dragged down in sympathy with the rest of the energy market.
|
|
Mike Lasser, a UBS hardline retail analyst, told CNBC's "Squawk on the Street " that Lowe's underperformed because it is more levered to the seasonal categories such as lawn and garden.
|
|
Investors are shy of natural resource shares, which, as we've seen recently, can see huge volatility in the prices of their products, as well as being levered to economic cycles.
|
|
The exemption allowed the UBS funds in Puerto Rico to be levered in many instances 2 to 1, which was the maximum amount legally allowed by Puerto Rico's securities regulations.
|
|
"The willingness of investors to invest in a shockingly large fund for levered tech investing with a questionable structure is a further indication of an exuberant, unquestioning market," Marks said.
|
|
"Banks are caught at the crux of that push and pull between earnings and political/trade concerns because banks are levered to future economic growth and political stability," said BNPPAM's Sherman.
|
|
Meanwhile, the other-side-of-the-coin product, DGAZ, which is designed to provide triple-levered short exposure to nat gas, is up a bit less than 40 percent in 2017.
|
|
As result, the company, which, like Kraft Heinz is levered at roughly four times EBITDA, has focused on peeling back its business rather than buying, in order to tackle both challenges.
|
|
Goldman said Valeant has made progress in executing growth initiatives, reducing debt, and moving past legal issues, but adds that Valeant still faces litigation risk and a highly levered balance sheet.
|
|
Shorting the placid VIX through levered trading instruments like the XIV, the VelocityShares Daily Inverse VIX Short-Term exchange-traded note, was a lucrative way to play the low-risk environment.
|
|
On an unleveraged free cash flow basis, when you look at the multiples, you're trading at about 20203 times 2020 levered free cash flow and 14.4 times unlevered free cash flow.
|
|
" In Cramer's lightning round, he flew through his take on some callers' favorite stocks, including: United Parcel Service: "UPS is getting its act together and they are levered to e-commerce.
|
|
Steel demand is highly levered to the overall corporate outlook, which helps explain why U.S. Steel shares tend to rise and fall alongside the market as a whole, but much more dramatically.
|
|
The last few years it just felt like a levered bank with a bad industrial business, and now it feels like a much smaller bank with an industrial business that's turning around.
|
|
Verizon: Cramer doesn't think Verizon's earnings report will be as bad as its competitor AT&T's because the company is not as "levered to the cord-cutting," but overall, he's not thrilled.
|
|
"We believe that Morgan Stanley is more levered to equity markets than peers due to exposure to equities within Wealth and Investment Management and Morgan Stanley's leading equity trading franchise," explained Kleinhanzl.
|
|
As the private sector has become increasingly over-levered, the baton is being passed to the public sector where resources are so strained that the printing press has become the last resort.
|
|
"It's very important, I think, in a levered economy not to have a flattening yield curve from this point forward and I think the Fed is beginning to believe that," he said.
|
|
"Fed tightening, U.S. decoupling, flattening yield curve, collapsing EM, outperforming levered quant funds... all echoes of 20 years ago," they wrote, detailing areas to watch for signs a 1998 scenario could unfold again.
|
|
The Nasdaq 100 is largely composed of big-cap tech stocks, while the S&P has a larger representation of names that are less levered to economic strength and to investor risk appetites.
|
|
"Commonsensically, a more highly levered economy is more growth sensitive to using short-term interest rates and a flat yield curve, which historically has coincided with the onset of a recession," he said.
|
|
The three of us have levered ourselves into the front of a van at 4 AM to visit the Traditional Cheese Dairy in East Sussex, one of the producers whose cheese Guarneri stocks.
|
|
The success of these highly-levered, multibillion-dollar transactions ushered in increasingly aggressive LBOs on the back of a stable economy and a relatively low pricing environment, two senior leveraged finance bankers said.
|
|
With the Federal Reserve expected to raise interest rates a couple more times this year, this segment is much more levered to short-term interest rates than larger and universal banks, he explained.
|
|
Furthermore, while Schwab enjoys the most scale and arguably best competitive positioning in the industry, it also is highly levered to interest rates and is an unlikely acquisition candidate due to its size.
|
|
"Why shouldn't we look at strong dividend players, levered to the economy, in sound and important businesses that pay above market rate yields?" said Art Hogan, chief market strategist at B. Riley FBR.
|
|
"If you want to employ a levered way to play the gold area, this is gold miners rather than the price of gold," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
|
|
Plus, Lehman was levered up because of the deterioration of its assets and trying to save itself in 2008 from some "pretty bad practices," which had nothing to do with Glass-Steagall, Fratto said.
|
|
And since Netflix is so incredibly levered to subscriber growth, even if there's just a little bit of substitution, just a tiny bit of substitution, I think it's going to weigh on the stock.
|
|
"The transaction provides the group with a substantially de-levered balance sheet, new capital and a strong platform for its staff, operations and publications," JPIMedia, a company formed by the bondholders, said on Saturday.
|
|
"VCs are so flush with cash that they desperately need companies like Tesla — large, scalable, and levered to mega-trends like autonomous driving and clean energy — as much as Tesla needs them," Colas said.
|
|
BlackRock strongly supports a regulatory classification system that would label levered and inverse ETPs differently than plain-vanilla ETFs in order to clarify for both regulators and investors the risks associated with those products.
|
|
"Trading at just 353 times price to earnings, Intel is a compelling large-cap investment levered to multiple secular advances — cloud, artificial intelligence, 5G, autonomous cars," BofA analyst Vivek Arya said in a note Friday.
|
|
Further, while the depressed margin profile for a relatively mature (yet still young) company appears ready to be levered, we hesitate to compare its potential just yet relative to more mature and dominant ad platforms.
|
|
Only 27% of American firms in 2017 were highly levered (defined as a debt-to-earnings ratio higher than five), down from 42% of firms in 2007, meaning that fewer firms are immediately at risk.
|
|
I'd like it even more on any additional weakness because Cintas is more levered to deregulation and optimism than it is [to] Washington and the pessimistic swamp that refuses to dry up and go away.
|
|
One of the reasons why Lele is bullish on the country is that it's highly levered to the global economy, which is expected to expand by 2.7 percent this year, according to the World Bank.
|
|
Commercial banks have curtailed their development lending activity due to the high capital charges for so-called high-volatility commercial real estate (HVCRE) loans that apply to many highly-levered development loans under Basel III.
|
|
"The unfortunate reality for Halcon is that it is an over-levered and sub-scale operator that cannot organically grow out of its problems in the current (or most any) commodity environment," Fir Tree said.
|
|
"Compounding the operating problems is the fact that Community is the most highly levered hospital company, which continues to put more pressure on equity owners," Barclays analyst Joshua Raskin said in a note to clients.
|
|
"Today's highly levered domestic and global economies which have feasted on the easy monetary policies of recent years can likely not stand anywhere close to the flat yield curves witnessed in prior decades," he said.
|
|
"We believe telecom services may be particularly positive levered to rising inflation given it is such [a] capital intensive business with significant invested assets — hence, rising inflation raises the ROE of the embedded assets, " he wrote.
|
|
The answer turns out that it's not just that the country can write large checks, it is that they are willing to write large checks to one of the most heavily levered companies in the world.
|
|
"The [retailers] that aren't surviving in a tough REIT apparel environment are the ones that were highly levered and had the imprint of private equity on it," Simon said on his most recent earnings conference call.
|
|
Monetary stimulus did have value, he said, in that it supported economic activity while parts of the economy de-levered, and it bought time for structural changes, such as shifting activity from declining to growing sectors.
|
|
Within equities the study did find the expected difference among sectors, with those thought to be cyclical offering a return levered to economic growth, differing sharply from those which are defensive and have more stable growth.
|
|
"I know there's always a lot of speculation on the strength of the economy but in our business we're heavily levered toward the U.S. consumer and the U.S. consumer is still doing quite well," he said.
|
|
"I know there's always a lot of speculation on the strength of the economy but in our business we're heavily levered toward the U.S. consumer and the U.S. consumer is still doing quite well," he said.
|
|
"We view it as nearly 14x levered because we only include cash Ebitda from the recourse business in our calculation, whereas the company's consolidated Ebitda figure includes payments due from concessions in many years' time," said Hellstern.
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"If you break it down, you realize that the vast bulk of that cash holding is by about eight companies and that most of corporate U.S. is actually more levered than it has ever been," he added.
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Our DCF driven price target implies a 10x CY'193E FCF multiple, a premium to peers which we believe may still be aggressive as the vast majority of the company's value is levered to the shredding bundle.
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" While levered long investments still need to unwind, leading to sharp market movements ahead, the former co-CEO of Pimco said, "There will also be opportunities for those who have cash in the days and weeks ahead.
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Generally, the story is pretty compelling: Jumia is one of the largest pan-Africa e-commerce businesses with a large and rapidly growing active user base that is positively levered at Africa's economic development and mobile adoption.
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Edwards, which currently dominates the U.S. market for TAVR, is more levered to the market than Medtronic, but both device makers should benefit from accelerating utilization trends with the new approval, Cowen & Co analyst Joshua Jennings said.
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"Eutelsat's balance sheet should now close the year comfortably under-levered - before the put, we expect closing leverage of 3.0 times; post the put that goes to 2.8 times," Jefferies analyst Giles Thorne said in a note.
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"[Nike] this quarter has become more promotional, more of its footwear platforms have slowed, and NKE-levered retailers have been crippled by negative comps," Canaccord analyst Camilo Lyon wrote in a note to clients earlier this month.
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Compare those losses to the performance of non-levered junk bond exchange-traded funds, like the SPDR Bloomberg Barclays High Yield Bond ETF down 2.08% and the iShares iBoxx High Yield Corporate Bond ETF was down 2.05%.
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"BlackRock strongly supports a regulatory classification system that would label levered and inverse ETPs differently than plain-vanilla ETFs in order to clarify for both regulators and investors the risks associated with those products," the firm said.
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Since the Great Recession, more highly levered corporations, and in many cases, indebted individuals with floating-rate student loans now exceeding $1 trillion, cannot cover the increased expense, resulting in reduced investment, consumption and ultimate default, Gross said.
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" Morgan Stanley's research team issued its own statement of annoyance: "While they may be 'dry' in nature, we argue such questions are extremely important for a highly levered and cash hungry company with 2025 bonds trading at 89.
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MGM's business is levered mostly to the Las Vegas market, but it plans to open a new resort in Macau's Cotai district later this year that will increase its hotel capacity three-fold in the larger Macau market.
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Nvidia is "one of the more unique investments in semis/technology, levered to multiple 10x growth markets in artificial intelligence (AI), gaming, virtual reality and autonomous cars (AV)," analyst Vivek Arya wrote in a note to clients Tuesday.
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The bigger worry is that the new group, which will remain highly levered with net debt of at least at 3 times forecast EBITDA, will still not be in a much better position to take on upstart Reliance Jio.
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Rumohr added, 'Some midtier regional banks are significantly levered to higher interest rates, however, if deposit levels deteriorate further and banks need to raise deposit pricing faster than expected, the positive impact on earnings from rising rates could diminish.
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An options trading strategy known as gamma hedging, levered exchange-traded funds and other instruments, as well as systematic flows, have contributed to huge swings of 10% in both directions and pushed the VIX to record highs, he noted.
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"We have seen more investors decline transactions perceived as over-levered or loosely structured for issuers in less-predictable sectors of the economy," said Jeff Cohen, managing director and global head of leveraged finance capital markets at Credit Suisse.
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These are "two very large, very highly levered companies that are not operating particularly well in a tough operating environment," said Jessica Gladstone, a senior vice president at Moody's Investors Service, which follows the debt of for-profit hospitals.
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At that time, I did think people were paying very high prices, the deals were fairly highly levered, and I thought there was a -- basically a view that nothing could go wrong, and that was probably a bad attitude.
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"We continue to view NVDA as a unique growth story in semis, levered to positive secular trends in gaming, VR (virtual reality), AI (artificial intelligence)/ML (machine learning) and automotive," analyst Toshiya Hari wrote in a note to clients Tuesday.
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"The problem with a really levered company is that if something falls heavily and more than you think, is that the cushion isn't very big," said a partner at one of the 37 hedge fund firms that had exited their stakes.
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"It was about ten minutes in," he says, having levered himself upright for our interview on a battered leather couch in the bowels of the Boston Music Rooms, a large pub in the north of London's venue-packed borough of Camden.
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"There are a lot of companies out there already maxed out and highly levered, and with credit markets seizing up, people are saying this is finally it," said Chris Donoho, global head of law firm Hogan Lovells LLP's restructuring practice.
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" Trex, which makes its wood alternatives from recycled materials, functions in 46 countries and is "heavily levered" to Europe and Australia, the CEO said, adding that Trex makes railings for "about 90 percent of the major stadiums and arenas in North America.
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While the risk of distraction may be high now that the Federal Reserve has paused its rate hikes, "companies that did these big mega-deals and levered up to do them," said Jackson, now must "live up to their commitments to delever."
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"Dan is a widely respected credit investor whose deep knowledge of European leveraged loan, levered credit, high yield bond, and CLO strategies will prove invaluable as we establish our European investment platform," said CIFC's CEO and CIO Steve Vaccaro, in a statement.
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For companies that raise funds through a token sale and that have had traditional angel or venture rounds previously, for example, their equity investors get to skip one or two rounds of dilution, which is great; it means their returns are hyper-levered.
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"Record levels of precipitation combined with heightened price competition within personal lines insurance mean core home/auto margins are under more pressure...Insurers most levered to homeowners' insurance are Allstate, which we are downgrading to Underperform, followed by TRV, CINF, HIG and CB. "
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Whether it was using a sum of the parts, a price to levered free cash flow consolidated EPS or a multiple to EBITDA all for 2019, the numbers pitched by the banks were well above the $79.77 value of the current deal.
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" Brock Silvers, managing director at Kaiyuan Capital in Shanghai, said a main concern for Beijing was "whether HNA's aggressive financial structure could result in a domino effect through its tightly levered and pledged portfolio, putting Chinese investors and bank capital at risk.
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CHARLIE MUNGER: Well, I might if I went way back, I could find you trades when I levered a bunch of convertible bonds and, you know, you go back to the very earliest Munger struggling for rationale, you'd find some dumb trades.
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"XOP has the spicy meatball names that are highly levered and went down a lot more from peak to trough on 'going' concerns," said Kim Arthur, founding partner at Main Management, an asset manager that uses ETFs extensively in its portfolio construction.
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Borrowers including internet security provider DigiCert, insurance technology company Sedgwick and Canadian airline WestJet all launched acquisition-related loans in excess of US$89.43bn this week, taking advantage of a split marketplace rewarding well-known borrowers above highly-levered, single B-rated companies.
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What they were trying to avoid are repeats of post-financial crisis disasters like TXU or Caesars, both bought by private equity investors and each levered to the gills, in terms of the debt each deal assumed ( would go on to file for bankruptcy protection).
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Financial institutions are not so highly levered and the grist for the global financial crisis was subprime mortgages and mortgage-backed securities and I don't see an analogy in today's market to the subprime mortgages in terms of its magnitude and its fallaciousness or fraudulence.
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"The new strategy in our view aims at breaking through the self-feeding debt/equity circle which we have often discussed in our research and to make Deutsche less of a levered market play vulnerable to external events," UBS said in its note Monday.
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The shipping giant has made adjustments to mitigate the effects of tariffs and the U.K.'s withdrawal standoff, including integration of its international delivery company TNT Express and bolstering programs in Asia, but the firm is too levered to dodge world trade affairs, he said.
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And so my sense is the highly levered areas of the U.S. economy may in fact become more stressed as these interest rates pick up both because it's picking up at the short end as well as if it picks up at the longer end.
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"It was almost as if Chipotle was the hidebound, troubled, figure-it-out-as-we-go-along kind of company levered to one new dish, the queso, while McDonald's was all about execution and value, the twin pillars of higher stock prices," Cramer said.
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He said the secret, in a negative interest-rate world that poses extraordinary duration risk for AAA sovereign bonds, is to keep bond maturities short and borrow at those attractive yields in a mildly levered form that provides a yield and expected return of 5-6 percent.
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The park's financial backers fell for the creative concept and ignored the harsh realities of the market, just as investors were too mesmerized by the intricacy of multi-layered mortgage bonds to remember that their value ultimately depended on over-levered homeowners making their monthly payments.
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"If you stop being negative on energy, you don't want to buy a safe energy play, you want to buy a levered play," said Ernesto Ramos, a portfolio manager at BMO Asset Management Company, referring to EOG Resources, whose revenues are closely tied to oil prices.
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As crude oil surged on Wednesday following OPEC's agreement to cut production, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which tracks companies that are highly levered to oil prices, rose more than 10 percent — and that was very bad news for one big options trader.
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The junior gold miners tend to be heavily levered to the price of gold; over the past five years, the GDXJ has a beta of 1.7 to the metal, which means that it tends to trade in the same direction as gold but with almost twice as much volatility.
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U.S and UK officials told reporters in a conference call that they plan to issue a joint alert on the attacks, which target routers that form a key part of the internet infrastructure, in a cyber espionage campaign that could be levered in the future to launch offensive attacks.
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However, Larry McDonald of Societe Generale said credit risk from the commodities collapse will hinder the Federal Reserve's ability to raise interest rates for the rest of the year, which could slow the U.S. dollar and thus boost the price of gold and the stocks levered to gold.
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"This ban has backfired with an estimated $400+ billion going into lightly regulated cash funds that want to take even more risk, resulting in private liquidity funds, levered insurance products, and increased structured finance activities like CLOs designed to meet the increased risk appetite," he wrote in a note.
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NEW YORK (Reuters) - Highly levered domestic and global economies including the United States, which have "feasted" on easy monetary policies in recent years, cannot withstand a normalizing of short-term interest rates without running the risk of a recession, influential bond investor Bill Gross of Janus Henderson Investors warned on Thursday.
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I followed Henry's trail down all sorts of unexpected paths, and what I uncovered was alternately fascinating and disturbing, starting even before the day my grandfather drilled two holes in Henry's head, levered up his frontal lobes and suctioned out some of the deepest and most mysterious structures in his brain.
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The U.S. has become largely energy independent, Federal Reserve officials have been more vexed by a lack of inflation, and the financial system has become less levered since the crisis due to a sharp deceleration in private sector debt compared to income and more stringent regulations in the banking system.
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"This imbalance occurred largely because the US economy has been relying more heavily on the consumer, small businesses and housing, and has a much healthier banking system, whereas the ROW has been more levered to manufacturing and trade, which have been weakened by the trade war," he said in a recent client note.
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These groups are levered to GDP and are likely beneficiaries of higher inflation ... Jefferies analysts have also identified stocks in these sectors with company specific attributes that may result in even better performance," the firm's research team wrote in a Thursday note titled "Trump stocks in Trump sectors; market hasn't fully rewarded likely winners.
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R: Well there are certainly areas of very high leverage even in the United States, certain parts of the corporate sector which are highly levered and as much as the interest rates it's also the easy access to financing, the ability to refinance to rollover debt which has been very important in the leveraging over the last few years.
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And yet we mustn't forget where we are today, with distorted pricing in virtually all markets and extremely levered public and private balance sheets, all driven by monetary interventionism on a scale never seen before: By most measures, the stock market is as expensive as it has been for a century, save only the giddy late 1990s.
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"That's right, despite the fact that volatility from the ebb and flow of trade is good for the investment banks, it's clear that investors perceive these stocks as being levered to the global economic expansion — same thing goes for the trading arms of the regular banks — and that expansion is jeopardized by tariffs and trade barriers," the "Mad Money" host said.
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When a locked tin cash box rattled intriguingly, Pippa levered it open with a screwdriver, and they were perplexed by what was inside until she recognized the club's Sacred Objects: a bone, a screwed-up page from a prayer book ("We spat on it," she said), a wrapped razor blade, their father's bronze medal for swimming, a gold ring set flashily with a green stone.
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" Sector recommendations: - Buy on Clinton win, sell on Trump win: alternative energy, housing and REITs, hospitals and managed care, exporters and companies with international exposure - Buy on Trump win, sell on Clinton win: exploration and production, banks, big pharma and biotechnology, high tax rate companies - Potential upside in either scenario: infrastructure companies, cash repatriation companies, defense, gun manufacturers Infrastructure spending: "In a rare example of bipartisan support, both candidates have discussed the need to repair crumbling infrastructure... The correlation between infrastructure spending and equity returns has deteriorated in recent years, but candidates' outsized plans could still be a tailwind for infrastructure-levered stocks.
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But at the end of the day if the worst thing that happens is people name call us a little bit, and call us billionaires and detached, that's not such a -- it's not the worst thing in the world if it allows us to wake up to the reality that a lot of people haven't been able to participate in what is really been, you know, an equity market expansion, where folks like you and I who can be, you know, long equities in a massive way, levered up, you know, access to certain products can do well to a degree that everybody else can't.
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