But the market is saying that they've learned a little about controlling bond inventories and margin risk.
Operating in an environment of continuous feedback and best practices sharing, and a high margin for risk, CDFIs have evolved into nimble, adaptable entities that can serve distressed marketplaces, which also now happen to be the fastest growing in this country.
Still, Lieber figures as long as mortgage REITs are buying on margin, some risk getting whacked eventually.
And that way, Apple could maintain its 70% gross margin with little risk of losing sales at that slightly higher price.
By this March, however, the Carlyle, Blackstone and other equity partnerships started marking down their holdings, and Reijtenbagh's portfolio plummeted, essentially putting Reijtenbagh at risk of a Credit Suisse margin call.
In his classic book, The Intelligent Investor, Benjamin Graham, proposed that risk averse investors seek a margin of safety, or leave room for error, to protect themselves from both poor decisions and market downturns.
What really matters is whether the interest margin properly reflects the risk of default.
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The wholesaling of wireless broadband services is a low-margin, high-risk business.
However, those tools can also be used to increase risk, perhaps by a big margin, and there is a growing danger that this will be done accidentally.
At the same time these sites are a source of casual work or even a regular pipeline for people who can build business from prices where margin is always at risk.
The early action preserves the margin and saves at-risk customers.
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Selling over the past couple of trading sessions has been violent and panicky, as steep declines in the price of bullion were accompanied by the breaking of key technical levels, sparking stop-loss selling, margin calls, and then risk managers and asset allocators offloading commodity holdings to build cash levels.
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The trick is to be no higher in risk than you can handle, including a margin of error.
But these were not normal conditions, and because of the risk we were taking, we needed a huge margin for error.
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Dow ends up with lower capital expenditures and less risk, allowing it to focus on research and its higher-margin performance chemicals.
In general, the Democrats' seats are at greater risk, giving the Republicans much greater opportunity to add to their existing margin.
Being AAA-rated, AIG was able to post modest margin requirements the deposit it had to pay against the risk of the contract being triggered.
Competition suits customers, but it also carries the risk that clearing-houses will water down standards on the amount of margin they demand, for instance to win deals.
Given that storage software is a higher margin business as compared to storage hardware, NetApp will not want to risk any further loss of market share.
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Academic studies prove that following that simple strategy has out-performed the market by a significant margin over the long-term, while taking only 50% of market risk.
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Still, taking into account estimates of trading volumes and margin payments, it is conceivable that an individual hedge fund, if it had no regard for counterparty risk, could have dominated trading of an individual bank's CDS on any given day.
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