The sub-prime lending market - worth billions of pounds - involves lending to people with poor credit records at an interest rate premium.
Unlike the British, the Danes do not fear losing influence (what influence?) if they stay out, though they dislike paying an interest-rate premium for the privilege.
Reportedly, Nano buyers will be charged a premium interest rate of 14%.
Several hedge funds are believed to have lost money when the price of GM and Ford bonds declined and their interest rate yields rose to a larger premium over Treasury bonds.
In this sense the liquidity premium, like the inflation premium, is another interest rate distorter, and therefore another masker of the truth.
Banks should like it because interest-only mortgages earn a premium rate and they get to lock in low-risk assets at their current depressed values.
In our negative real interest rate environment, the market has begun to put a premium on the certainty of income.
Long bonds usually have higher coupons than short ones, as investors demand a premium for exposure to the risk of interest-rate rises and inflation.
Bonds pay interest based on the expected inflation rate until maturity, plus a fair risk premium over inflation based on the riskiness of the bond.
The remaining yield on longer-term bonds is a risk premium that is commensurate with U.S. interest-rate volatility (Japanese risk premiums are lower, but they also have nearly zero interest-rate variability).
Loans provided by BNDES are based in the so called TJLP long-term interest rate, which currently stands at 5%, while traditional loans carry a premium over benchmark Selic rate, currently at 12.25%.
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Furthermore, upon the occurence of certain events, the interest rate applicable to the Senior Notes may become 11.0% per annum and the redemption premium may begin to apply prior to the fifth anniversary of the Closing.
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There would, on the other hand, be a useful fall in interest rates, because investors would no longer demand a premium for the risk that the exchange-rate peg would be broken.
Senior loans pay interest at rates that are determined periodically by reference to a base lending rate, primarily LIBOR, plus a premium.
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Mr. BRIAN MONTGOMERY (Federal Housing Commissioner, U.S. Department of Housing and Urban Development): And that's the main difference between FHA and the subprime, is we price for the risk with an insurance premium, whereas in most of the subprime world, they price the risk in the interest rate.
The average risk premium on the country's bonds has fallen from a peak of 18 percentage points above the interest rate on United States' Treasury bonds to below six.
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