Credit also was used to buy stocks on margin, greatly increasing the market's volume and volatility.
That's because selling a credit swap is equivalent to buying the corporate bond on margin.
The Pimco High Income Fund is a closed-end collection of junk bonds, bought on margin.
Still, Lieber figures as long as mortgage REITs are buying on margin, some risk getting whacked eventually.
Barring that, strict limits on margin and leverage, especially for holders of insured deposits, can be helpful.
The caveats: transaction costs can add up, and trading on margin, as most people do, is risky.
The Fed is doing investors another turn, which deals with the cost of carry on margin accounts.
Management did note first quarter earnings will fall 15% to 20% on margin pressures and increased marketing costs.
FORBES: Tiffany's Grows On China's Love For Gold As U.S. Demand For Luxury Stagnates
At the same time, he was aggressively buying Chesapeake Energy shares on margin--using borrowed money for the purchases.
Main Street investors trading for their own accounts should be especially careful about buying on margin into these lows.
Hedge funds and mortgage lenders are faltering on margin calls by skittish lenders.
Interest on margin credit is next to nothing, an easy cross to bear.
Tens of millions of dollars had been borrowed against the securities on margin.
The real reason behind the fall was the forced selling by the speculators who bought on margin near the recent swing top.
Sources tell me counterparties were more worried at this point about MF Global defaulting on margin calls than European countries defaulting on the bonds.
FORBES: Uncontrolled Risk Taking, Not Bad Accounting, Did MF Global In
Clearly, this was due to the wipe-out of speculators on margin who were not buying silver as a monetary reserve, but as a risky trade.
FORBES: Silver Down 30%, Gold Off 11% As Panic Hits Precious Metals
Maybe another one is to buy one of those instruments on margin and leverage your position, and finally you could have used options to implement the position.
Rollinson said mine optimization will be a factor going forward and that the company will focus on margin increases, rather than higher mine production at any costs.
FORBES: Kinross: Main Focus Will Be On Increasing Margin And Prioritizing Cash Flow
However, home ownership in a downturn has one big disadvantage: most people buy shares outright but homes on margin (ie, they put down a small stake, if anything).
When interest rates were high and stocks were bumping the bottom back in 1982, he encouraged all his clients, including David and Wilma Wilson, to buy on margin.
With interest rates declining throughout the 2000s, and a Western and Japanese unified monetary policy of easy money greasing the wheels, investors geared up into equities on margin.
Speculating in commodities on margin always was a fools game.
FORBES: The Gut-Wrenching Rout In Commodity Prices Is A Healthy Antidote To Speculation
The company says it will continue to focus on margin-expanding sales like mobile connections, broadband and TV connections, which it began testing in the North American market last year.
FORBES: Best Buy's Mobile Business Drives Up Interest In Stock
Back during the Internet boom more than a few individual investors saw Internet shares escalating--seemingly without interruption--and thus bought the shares on margin in order to capture what appeared to be unlimited upside.
The incentive structure in the sport means that wrestlers on the margin of achieving a winning record have far more to gain from winning than opponents, not on the margin, stand to lose if defeated.
Finally, the unlikely sources of funds used to purchase the shares also suggest that Vance and Wellington were keen on avoiding raising red flags by perhaps making large purchases on margin or contacting a bank for a loan.
Interest on margin loans has become a big source of revenues for some online brokerages (23% at Ameritrade, 17% at Schwab), which might suggest that they are less concerned than they should be that their clients are borrowing wisely.
应用推荐