And they have to pay thehigher interest rate on that new debt they borrow.
It is the security or collateral that banks provide to those from whom they borrow.
Debts are always nominal, in the sense that companies must pay back what they borrow.
When fishermen are struggling they borrow from the co-op against future catches--as these diminish, their debts mount.
The scores then affect the amount of interest paid if they borrow money.
Typically, when investors take a short position, or make bearish bets on a stock, they borrow stock to magnify their bet.
Local governments cannot borrow directly so they borrow through investment vehicles instead.
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Most of it they borrow from the Chinese and the Japanese government.
But much of what they borrow has been invested in China, so part of their debt ought to count in China's foreign-currency exposure.
Similar to my earlier attitude toward music, many consumers still feel more of an attachment to something they own vs. something they borrow or stream.
Oh and they control the rates they borrow from at less then 1% and give to students at 6.8% (only 5-6k a year for undergrad)!
Borrowers can keep a book for as long as they like, but when they borrow a new title, the previously borrowed book automatically disappears from their device.
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What they do is, when an old bond has to be repaid, they borrow again with a new bond and use that money to pay off the old.
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He's not planning on seeing the film himself, and for people who want to read the book, he makes just one request: that they borrow it, not buy it.
When investors short a stock, they borrow shares, hoping the price falls so they can buy the stock back later at a lower price, return the shares and make a profit.
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Banks have been riding a steep yield curve, meaning they borrow money at virtually no cost from the government and lend it out or invest it in higher-earning assets, profiting from the difference.
They borrow much more money than they lay out to buy homes and autos, which leverages the importance of that spending compared to buying a new pair of jeans or a new smart-phone.
More than 100 closed-end funds are trading at discounts to net-asset value of more than 20.0%, though most of them are leveraged, meaning they borrow money to amplify their returns, a risky strategy if disaster strikes the portfolio.
Banks that were weak would not have wanted to signal that fact widely in markets by submitting honest estimates of the high price they would have to pay to borrow, if they could borrow at all.
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Fisher: I think that the prior one, that they can't borrow, is more valid than the one that they can borrow.
The spendaholics charge ahead because they know they can borrow whatever they need.
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And, critically, they can borrow cheaply because they are deemed too big to fail.
Many poor people found they could borrow more than they could ever hope to repay by going to several lenders.
The fact of the matter is that that they can borrow means that they will have the money to spend on things, and that means they'll have the money to spend on expansion.
In the US the ability to sell to accumulating central banks in emerging markets means that they can borrow more than they otherwise could have and this helped finance the deficits and build up of US debt, says Booth.
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Although the ECB has essentially made an offer of unlimited funds, banks are still constrained in how much they may borrow by the quality of the collateral that they are able to hand over.
Libor, CFAs are agreed, should reflect actual interbank borrowing rates, not some hypothetical estimated rate at which banks think they could probably borrow if they wanted to.
Publishers fear that if readers realize they can borrow e-books for free from their local library, they might not buy them as much.
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