Asset
in sentence
1608 examples of Asset in a sentence
The new
asset
class would need its own standardized risk/return profile, accounting, for example, for the political risks that public-sector involvement may imply and for the lower returns from infrastructure relative to traditional private equity.
Moreover, the risks associated with the new
asset
class would change as projects progress from feasibility study to construction to operation, implying that each phase would attract different sources of funding.
In short, redefining infrastructure as a new
asset
class is the only credible way to attract funding for infrastructure construction, and thus to boost long-term economic growth and the employment rate.
Consider what happened when the Federal Reserve misplayed its hand with premature talk of “tapering” its long-term
asset
purchases.
The ECB has been following a similar strategy of large-scale
asset
purchases and extremely low (indeed negative) short-term interest rates.
The cure depends on which of three modes define the fall in
asset
prices.
In the second mode,
asset
prices fall because investors recognize that they should never have been as high as they were, or that future productivity growth is likely to be lower and interest rates higher.
Either way, current
asset
prices are no longer warranted.
But if the central bank reduces interest rates and credibly commits to keeping them low in the future,
asset
prices will rise.
The third mode is like the second: a bursting bubble or bad news about future productivity or interest rates drives the fall in
asset
prices.
Easing monetary policy won’t solve this kind of crisis, because even moderately lower interest rates cannot boost
asset
prices enough to restore the financial system to solvency.
Unlike the days of yore, when cutting the price of credit could boost borrowing, “quantitative easing” purportedly works by stimulating
asset
and credit markets.
Far more disconcerting is the willingness of major central banks – not just the Fed, but also the European Central Bank, the Bank of England, and the Bank of Japan – to inject massive amounts of excess liquidity into
asset
markets – excesses that cannot be absorbed by sluggish real economies.
Moves to liberalize interest rates will put even more pressure on
asset
quality and bank profitability.
Since the 2008 financial crisis, American financial institutions’
asset
write-downs have amounted to 13% of GDP.
By selling troubled assets in the secondary market, commercial banks could strengthen their balance sheets while avoiding liability increases and enhancing
asset
liquidity.
Competitive securitization was a leading cause of the US subprime mortgage crisis; owing to defaults, mortgage loans remain America’s number one troubled
asset.
But if the
asset
managers pay full book value for those loans, they will incur losses, and the government will have to foot the bill.
But it may be worse: coordinating everyone into risky
asset
investments may be more dangerous than coordinating them into boring investments like money-market funds.
Even if the
asset
pool declines in value, the fund’s managers keep the value of each share at $1.00 by rounding upward the fund’s real value.
According to the magazine’s editor, the best way to pull digital currencies out from the shadows and “into the adolescence of a legitimate
asset
class” is to shine a light on the beneficiaries.
Today, neither Draghi’s recent statements nor the prospect of an American-style program of large-scale
asset
purchases (also known as quantitative easing) has caused the euro to weaken or the inflation rate to move back toward the target level of 2%.
The dollar’s value then remained relatively stable during more than three years of quantitative easing – and actually rose during 2013, when the Fed’s
asset
purchases reached a high of more than $1 trillion.
Nonetheless, the behavior of the dollar’s exchange rate during the period of quantitative easing offers no support for the proposed use of large-scale
asset
purchases by the ECB as a way to bring about euro depreciation.
The consumer price index rose by 1.6% in 2010, when quantitative easing began, then increased somewhat faster in 2011 and 2012, before dropping back to a gain of just 1.5% in 2013, the peak year for
asset
purchases.
A generation of global market participants knows only a world of low (or even negative) interest rates and artificially inflated
asset
prices.
The United States Congress is currently debating a law that would impose
asset
freezes and visa bans on the 60 people identified as having had some responsibility for Magnitsky's detention and death.
In Ottawa, the Canadian parliament has called for similar measures, including
asset
freezes against those responsible for Magnitsky's death, as has the European Parliament, which has called for the European Union’s member states to take collective action.
This enabled a consumption binge, which meant that debt was created without a corresponding asset, and encouraged excessive investment in real estate, resulting in excess capacity that will take years to eliminate.
Emerging markets know this, and are upset – Brazil has vehemently expressed its concerns – not only about the increased value of their currency, but that the influx of money risks fueling
asset
bubbles or triggering inflation.
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