refinancing risk การใช้
- This may mean that there is a refinancing risk.
- Still, the refinancing risk remains.
- However, refinancing risk is higher for short-term debt and frequent refinancing implies a larger risk of financing with higher interest rates.
- Mortgage funds would likely do worse than Treasury funds because of " extension " risk, which is the opposite of refinance risk.
- Mortgage-backed securities yield a couple percentage points more than Treasuries to make up for this refinance risk and their slightly higher risk of default.
- In banking and finance, "'refinancing risk "'is the possibility that a borrower cannot refinance by borrowing to repay existing debt.
- Wherein, the impossibility of the financial institution to refinance by borrowing in order to repay existing deposits is called a "'refinancing risk " '.
- Therefore, governments face a trade-off between cheaper funding costs, which tilts the duration towards short-term maturities and refinancing risk, which tilts the duration towards longer-term maturities.
- In addition, PIK loans typically carry substantial refinancing risk, meaning that the cash flow of the borrower in the repayment period will usually not suffice to repay all monies owed if the company does not perform excellently.
- "The rating actions primarily reflect current refinancing risks to ABB arising from the use of excessive financial leverage at a time of significant near-term challenges, " said S & P credit analyst Ralf Kortuem.
- "If the market is in a trading range with a bias toward lower levels, mortgages are a good place to be, " said Margaret Patel, who manages $ 225 million at Northstar Investment Management Corp . Even so, " the refinancing risk is very high ."