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Debt overhang |
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Debt overhangA situation in which the external debt of a country is larger than it will be able to repay. Often due to having borrowed in foreign currency and then had its own currency depreciate.Similar MatchesOverhanging redemption penaltyOverhanging redemption penaltyAn early redemption charge that lasts beyond the benefit period is referred to as an extended or overhanging redemption penalty. These should be avoided where possible. OverhangOverhangSee debt overhang and money overhang. Overhanging BondOverhanging BondA convertible bond issue that investors do not convert into common stock because the stock has not appreciated in value. Redemption penalty overhangRedemption penalty overhangThis is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place. Market overhangMarket overhangThe theory that, in certain situations, institutions wish to sell their shares but postpone the sale because large orders under current market conditions would drive down the share price and that the consequent threat of securities sales will tend to retard the rate of share price appreciation. Support for this theory is largely anecdotal. Further SuggestionsMoney overhang |
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