While acknowledging the risks, the banks defend their exposure saying they have low loan-to-value ratios.
For these loans, borrowers will also need to maintain 75% loans-to-market value ratios, 75% for refinancings and 70% for cash-out refinancings.
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Gurus bought into a momentum stock with some great value ratios.
Plenty of those flats were bought with credit but loan-to-value ratios were, many bankers claim, conservative, while standards are nothing like as loose as in America.
Rics blamed the worsening affordability on the reduction in the loan-to-value ratios lenders were prepared to offer first-time buyers, and the "continued burden" of stamp duty and professional fees.
Relative to earlier vintages, more of these loans carried greater risks beyond weak borrower credit histories including very high initial cumulative loan-to-value ratios and less documentation of borrower income.
With borrowing rates so high, loan-to-value ratios on houses can be twice as much as a home's market value, whereas in a more balanced market they would be at 75%.
While the rate of negative equity is comparable between the two sets of borrowers, the delinquency rate and loan-to-value ratios are substantially lower for borrowers who purchased homes in 2010 (see Figure 2).
Key elements in this regard include countercyclical capital buffers, the implementation of more resilient financial market infrastructure, reductions in the variability of repo margins, and other macroprudential policies such as loan-to-value ratios in property markets.
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Value is hurting ratios, and this in turn is disqualifying borrowers from approval based on loan to value (LTV).
Privately held fortunes were valued at book value or by coupling estimates of revenues, profits or book value to prevailing ratios for similarly publicly traded companies.
But the impact can be all too real, as write-downs reduce overall book value and increase leverage ratios, a particular concern in these debt-averse times.
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In fact there only circumstance where such an index has value is when the Sharpe ratios of all component stocks and the correlations between all pairs of stocks in the index are equal.
As a value play, Lear has some compelling ratios such as its trading multiple of 7.5 times trailing earnings, 0.14 times sales and 0.9 times book value.
Even a massive markdown of value would have little effect on the financial efficiency ratios of Operation Compassion.
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Debt is rising fast: a survey of the top 16 companies by share value showed that their debt-to-equity ratios have tripled over the past three years.
In fact, there is a perfectly credible theoretical argument that at this stage of the cycle, the FPC should be encouraging the banks to actually reduce their capital ratios by inflating the denominator, the value of their lending.
Although many companies announce they "plan" to buy back their shares, Fried filters out the noise and goes for companies actually doing the buybacks and then screens for stocks trading at low price-to-earnings ratios, low price-to-book ratios and which meet an overall "value" criteria.
My previous post elaborated on the probable value as measured by price-to-book ratios (PBRs) now available in the Japanese stock market.
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In addition, ratios of price to sales and price to book value are bumping along their lowest levels of the past four years and are at substantial discounts to their five-year averages.
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When I am measuring the true indebtedness of an enterprise, I like looking at liabilities as a percentage of oversimplified enterprise value even more than I like looking at debt to equity ratios.
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To give two high-profile examples, Ibbotson and Associates and the academic duo of Eugene Fama and Kenneth French did similar studies that found that value stocks, as measured by low price-to-book ratios, outperform growth stocks over the long run.
He likes Ryerson for its rock-bottom ratios like 0.14 times sales, one times book value and 10.7 times trailing 12 months of earnings.
While site analytics and conversion ratios from social are important, I believe they have little value without the insight gained from understanding the conversation triggers, the tonality, the influencers and the trends of these conversations.
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The Bank of England points out that, in Denmark, which brought in an accounting system akin to fair value some years ago, one result has been that the volatility of banks' capital ratios has risen sharply.
Valuation becomes a matter of ratios of highly formalized GAAP earnings in relation to fluctuating prices adjusted by highly abstract notions of variance and value at risk.
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