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Asset in sentence

1608 examples of Asset in a sentence

Consequently, shares in coal companies have fallen by as much as 90%, leaving asset owners scrambling to divest.
As this realization percolates through the market, asset owners are hedging their bets by increasing their investments in low-carbon industries and companies like Tesla.
A new “shadow banking” system evolved, with highly pro-cyclical characteristics, and lending standards plummeted even as financial leverage and asset prices rose to extremely high levels.
But it is increasingly clear that ultra-easy monetary policy is impeding the necessary process of deleveraging, threatening the “independence” of central banks, raising asset prices (especially for bonds) to unsustainable levels, and encouraging governments to resist making needed policy changes.
Two months of bad economic news, coupled with asset markets’ severe revaluations of the future – which also cause slower future growth, as falling asset prices lead firms to scale back investment – mean that a policy that was appropriate just 60 days ago is much too austere today.
This “something” is usually understood to be massive asset purchases, or quantitative easing (QE).
When the central bank buys large amounts of bonds, all asset prices, including housing, tend to increase.
This drove up interest rates for emerging-market debt as an asset class .
Disease saps the greatest asset that any country possesses: the energy and talent of its people.
They are doing this by promising to keep short-term rates low; maintaining large portfolios of private and government bonds; and, in Europe and Japan, continuing to engage in large-scale asset purchases.
And that has created a growing risk of serious adverse effects on the real economy when monetary policy normalizes and asset prices correct.
That is enough to shake asset prices worldwide.
Trump’s election has almost certainly ended the 35-year trend of disinflation and declining rates that began in 1981, and that has been the dominant influence on economic conditions and asset prices worldwide.
As developed countries were plunged into debt crises, with shrinking asset values and declining exchange rates, China’s international purchasing power grew.
The crisis was caused by the largest leveraged asset bubble and credit bubble in history.
A vicious circle of deleveraging, plummeting asset prices, and margin calls is underway.
And Nobel laureate Robert Shiller agrees, warning that excessively low interest rates have created “overheated asset markets – real estate, equities, and long-term bonds – [which] could lead to a major correction and another economic crisis.”
Although Shiller and Roach express serious concerns about the buildup of debt and high asset prices in developed countries, both Roubini and Berkeley’s Brad DeLong downplay concerns about financial instability, because interest rates will remain low by historic standards for many years, even as Fed tightening begins.
These external effects are particularly consequential in the financial sector, owing to the potential for large and relatively abrupt changes in capital flows, asset prices, interest rates, credit availability, and exchange rates, all of which have powerful effects on output growth and employment.
So savers did what one would expect: seek higher risk-adjusted returns in emerging economies, causing increases in credit and fueling upward pressure on exchange rates and asset prices.
China’s systemic importance with respect to emerging-market growth, its relative stability, and other emerging countries’ domestic policy responses suggest that the main effect of the Fed’s coming policy shift will be a new equilibrium with less distorted asset prices.
Finally, public purchases of domestic assets to stabilize asset prices and net capital flows will become increasingly common.
The SDR was introduced 40 years ago to supplement what was then seen as an inadequate level of global reserves, and was subsequently enshrined in the IMF’s amended Articles of Agreement as the future principal reserve asset.
So, instead of becoming the principal reserve asset of the global system, the proportion of SDRs in global reserves shrank to a tiny fraction, rendering the SDR the monetary equivalent of Esperanto.
In order to make the SDR the principal reserve asset via the allocation route, close to $3 trillion in SDRs would need to be created, an unrealistic proposition.
Member countries would receive an asset that was more stable than the dollar, as it was based on a basket of currencies, thereby providing better protection against losses.
Today’s low interest-rate environment is causing a flood of financial flows to emerging economies, raising the risk of inflation and asset bubbles.
These economies have since recovered a significant part of the lost ground in terms of exchange rates and asset prices.
This is not because they wish to play that role; rather, it is because higher asset prices are essential if central bankers stand any chance of delivering the desired economic outcomes of higher growth and stronger job creation.
This is most evident in the US, where markets love the Federal Reserve’s trifecta of near-zero policy interest rates (negative in real terms), aggressive forward policy guidance, and asset purchases – all of which push investors to take more risk.
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