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Borrower in sentence

56 examples of Borrower in a sentence

If the borrower runs into trouble, CACs make it possible to restructure debt with the agreement of a substantial majority of creditors (usually around 70%).
Outside the advanced countries, there is a view that the world will return to pre-crisis conditions, with a stable US that functions as borrower, lender, and consumer of last resort.
A financial transaction, by contrast, happens over time: the borrower gets the money today and promises to repay in a month, year, or decade.
Notably, the issuer, that is the borrower, can rationally plan such borrowing to make real investments.
As long as the borrower has not misled the lender at the time of taking the loan, the lender bears at least some responsibility for the transaction.
Unless inflation drops much more, now is an ideal time to be a borrower and a bad time to be a lender or investor in long-term bonds.
In the first three stages, the country is a net borrower with a deficit on the investment-income account.
In the 1990’s, Argentina tied its hands with a dollar-pegged currency in order to enhance its credibility as a borrower.
The borrower is cut off from international markets, and essential imports can no longer be purchased, while large-scale defaults threaten to plunge creditors into insolvency.
What is required is a wide-ranging policy response that combines more powerful countercyclical capital tools than currently planned under Basel 3, the restoration of quantitative reserve requirements to advanced-country central banks’ policy toolkits, and direct borrower constraints, such as maximum loan-to-income or loan-to-value limits, in residential and commercial real-estate lending.
Whether a borrower like Italy ends up in the lap of good expectations or tumbles into a nightmare scenario often depends upon some “coordinating news.”
In the old days, when borrowers found it impossible to make their payments, mortgages would be restructured; foreclosures were bad for both the borrower and the lender.
For example, they could impose higher capital requirements on real-estate lending or introduce direct borrower constraints like limits on loan-to-value or loan-to-income ratios.
All debts imply a commitment by the borrower to repay what was borrowed, with interest.
While the latter focus on the ability and willingness of the borrower to pay, the odiousness rating would provide an estimate of how likely it is that a court would decide that the debt falls with the regime.
This is especially true of characteristics that are relevant to default risk, such as whether the borrower was an owner or an investor, or whether there was a second lien on the property.
In the United States, brokers were selling mortgages without checking whether the borrower had the means to repay.
The borrower knows the risk is high, but tells the lender it is low.
Profligacy in good times left few assets to liquidate in bad times, and markets were unwilling to lend to an over-indebted borrower.
Furthermore, not only are the newer issues coming from a lower-quality borrower, the covenants on these instruments – provisions designed to ensure compliance with their terms and thus minimize default risk – have also become lax.
“Neither a borrower nor a lender be,” Shakespeare’s Polonius admonishes his son Laertes.
This creates a strong incentive to default, because mortgages in the US are effectively non-recourse loans: the creditor may take the property if the borrower doesn’t pay, but cannot take other assets or a portion of wage income.
When markets are in a euphoric state, they are in no position to exert discipline on any borrower, let alone a government with a reasonable credit rating.
The key to mortgage regulation is the concept of “risk weight,” a measure that increases with the probability that a borrower will default.
Through the “equity” conferred to the vehicle, the sovereign borrower (the Italian government, in our example) would then attract further capital through bond issuances.
Equity acts as a sort of guarantee that the borrower is good for the money.
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