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Assets in sentence

2739 examples of Assets in a sentence

A renewed renminbi appreciation would boost China’s outward FDI growth even further by lowering the cost of overseas assets for Chinese firms, which operate in a fairly competitive market and have strong cash reserves from both retained earnings and large-scale state credit allocations.
Like competitors elsewhere, they need to invest abroad to acquire a portfolio of local assets that give then better access to the markets, skills, technology, and natural resources that they need to protect and strengthen their international competitiveness.
Chinese FDI, like all FDI, can provide host countries with a bundle of tangible and intangible assets needed for economic growth and development.
America’s foreign creditors would not accept a sharp reduction in their dollar assets’ real value that debasement of the dollar via inflation and devaluation would entail.
Rather than subsidizing the price in the domestic oil market (and thus giving domestic manufacturers and consumers an incentive to use too much oil), it would make far better sense to let the domestic price rise to the international price and distribute the windfall profits from foreign oil assets to the population.
The key point is that fundamental economic decisions should not be affected by the ownership of additional foreign oil assets.
Assuming the foreign oil assets are priced fairly at the time of purchase, the country benefits only when the purchase helps smooth its income; however, purchases may increase income volatility even for a country that relies heavily on oil.
Foreign oil assets are a bad hedge in such cases, for they subtract from citizens’ income when it is already low and add to it when it is high.
Even if owning oil assets is a useful hedge (as in a small, oil-consuming country), it is not clear that buying stakes in opaque companies in foreign countries is the best strategy.
A country’s property rights in foreign oil assets are likely to diminish as the oil price rises.
Even if the foreign company does not start squeezing out its minority owners, its government will be tempted to expropriate foreign owners through windfall taxes (if the government is sophisticated) or nationalization (if it is unsophisticated) – especially if its voters feel, with the benefit of hindsight and populist incitement, that the assets were sold too cheaply.
If such a situation were to occur, ownership of oil assets abroad would most likely become worthless, as each country would only get to use oil produced within its political borders (or within nearby borders that could be invaded).
In fact, the US stress tests didn’t attempt to estimate the losses that banks have suffered on many of the “toxic assets” that have been at the heart of the financial crisis.
Until recently, much of the US government’s focus has been on the toxic assets clogging banks’ balance sheets.
Although accounting rules often permit banks to price these assets at face value, it is generally believed that the fundamental value of many toxic assets has fallen significantly below face value.
The Obama administration came out with a plan to spend up to $1 trillion dollars to buy banks’ toxic assets, but the plan has been put on hold.
It might have been hoped that the bank supervisors who stress-tested the banks would try to estimate the size of the banks’ losses on toxic assets.
Instead, supervisors estimated only losses that banks can be expected to incur on loans (and other assets) that will come to maturity by the end of 2010.
Rather than estimate the economic value of banks’ assets – what the assets would fetch in a well-functioning market – and the extent to which they exceed liabilities, the stress tests merely sought to verify that the banks’ accounting losses over the next two years will not exhaust their capital as recorded in their books.
As long as banks are permitted to operate this way, the banks’ supervisors are betting on the banks’ ability to earn their way out of their current problems – even if the value of their assets doesn’t now significantly exceed their liabilities.
But doesn’t the banks’ ability to raise new equity capital indicate that, regardless of whether the stress tests are reliable, investors believe that their assets’ value does significantly exceed their liabilities?
Suppose that the bank has assets with long maturity and a face value of $1.2 billion but whose current economic value is only $1 billion.
Although the value of the bank’s assets doesn’t exceed its liabilities, depositors won’t flee as long as the government backs the bank by guaranteeing its deposits.
If in two years the bank’s assets have a 50-50 chance of appreciating to $1.2 billion or declining to $0.8 billion, the bank will be able to raise new equity capital: new investors will be willing to pay for the prospect of sharing in the excess of the value of assets over obligations if things turn out well.
To get a good picture of banks’ financial health, estimating the value of their toxic assets is unavoidable.
Either way, the true value of banks’ toxic assets must be estimated before concluding that banks are armed with sufficient capital to carry out their critical roles.
In lieu of capital-flow restrictions, Turkey’s monetary authorities began to cut overnight borrowing rates in November 2010, in order to reduce the profitability of the carry trade (purchases of foreign-currency assets to take advantage of a higher interest rate).
Fiat currencies are also protected from value debasement by central banks committed to price stability; and if a fiat currency loses credibility, as in some weak monetary systems with high inflation, it will be swapped out for more stable foreign fiat currencies or real assets.
Commercial banks are ranked by assets.
Over the years, Dera Sacha Sauda amassed a significant land bank and real-estate assets, and enjoyed considerable influence in the states of Punjab and Haryana, with its reach extending to Delhi.
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