Nervousness that Greece will miss its late March bond payment deadline could curb risk appetite for investors in coming weeks.
There is also a risk that payment by result might mean organisations target those who will likely give them good results.
The review should determine if changes in key factors (such as cardholder credit risk, payment history, and market conditions) give reasons to reduce the rate.
Novy-Marx concludes with a thought experiment where he substitutes GASB accounting with an identical system where future liabilities are discounted at the muni rate (after all, the risk of non-payment to pensioners is no different, or in most case lower, than the risk to bondholders).
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Inability to pay for imports can stall the economy, and a very high CAD increases risk of non-payment.
The risk in pushing out payment terms is that it puts financial strain on companies that supply key inputs and are themselves big employers.
Still, while RIM may have eliminated the risk of a bigger payment down the road, its willingness to pay could open the company up to more patent-infringement suits.
However, leases do provide some key benefits, particularly a low initial payment, tax deductions, lower risk on resale value and the convenience of returning a car without the hassle of reselling it personally.
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Since virtually every securities class action settles after surviving a motion to dismiss, the risk of non-payment is presumably much lower for plaintiff attorneys and courts might consider lowering or eliminating the multiplier on billable hours the firms rack up after that.
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Cumulative preferred stock buffers the risk of a skipped dividend payment by allowing past due dividends to accrue.
Worse, nearly 10 percent of reverse mortgage borrowers were at risk of foreclosure due to non-payment of taxes and insurance as of February, 2012, according to the CFPB report.
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Layering of risk means the borrowers courted by these lenders had multiple characteristics that would put them at high risk for default, including no down payment, no documentation of income or assets, low credit scores and second mortgage in lieu of a down payment.
You can read it all at the newspaper link but shocking as why else would this occur other than predictive modeling giving a bad risk assessment when in fact nobody has missed a payment?
Justice Secretary Chris Grayling recently unveiled a shake-up of probation services, which will see lower-risk offenders supervised by private firms and charities on a payment-by-results basis.
The Government Accountability Office has also cast doubt on a proposal--supported by Democrats and the administration--to lower the down payment requirement for FHA-insured loans, given the greater default risk on those loans.
In addition to regularly monitoring your checking account, try to keep a buffer of cash in there to help prevent overdraft charges or even cancel the overdraft feature altogether (although you may run the risk of late fees from billers if you miss a payment due to insufficient funds).
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Bank Indonesia Deputy Director Yunita Resmi Sari said the central bank imposed a minimum down payment for car and motorcycle loans last year to limit banks' credit risk and to ease consumers' debt burden.
This leaves consciencous physicians, bent on doing what is best for their suffering patients, to assume the financial risk of providing life-saving care knowing that there will be insufficient payment from the insurer and that their patient may never be able to pay the difference for the drugs administered.
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Telkom's introduction of pre-payment cards for home telephones, sold everywhere from petrol stations to village shops, eliminates the risk that poor customers will not be able to pay their bills, and improves the firm's cashflow into the bargain.
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If the bitcoin payment processing industry is indeed headed towards sophisticated, feature-rich deterministic wallets and built-in risk management functionality, the leading processor should have a great advantage in steering the transition.
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