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Assets in sentence

2739 examples of Assets in a sentence

Today, the US has the smallest middle class, holding just 22% of total net financial assets, half the average of other industrialized countries, and the highest concentration of wealth than in any other country.
Japan, widely viewed as a developing country only a generation ago, has become by far the largest creditor – and its massive buildup of foreign assets will continue expanding rapidly as far ahead as one can predict.”
The same charge has dogged China, which, with its spectacular export-led growth, record official purchases of US assets, and fixed (or semi-fixed) exchange rate, today continues to dominate discussion of global imbalances.
Foreign investors now hold more than $5.7 trillion of these low-yielding securities, not to mention large quantities of other dollar assets.
These entities take money from investors and buy various kinds of assets, some of which may be risky – like short-maturity corporate debt.
In fact, the value of assets held by such funds fluctuates, and it is only an accounting convention – permitted by regulators – that allows them to report a stable value.
There is a simple fix to this problem – require money-market funds to show the actual floating value of their assets, so that everyone understands that it is not a fixed number.
In the United Kingdom, an ever-increasing share of bank assets has been concentrated in the five largest banks.
Reformers want to cap bankers’ bonuses, create firewalls between banking departments, or (more radically) limit a single bank’s share of total banking assets.
In Lebanon, for example, the central bank has launched an unprecedented startup support initiative, Circular 331, through which it guarantees up to 75% of risk capital made available by local banks, amounting to up to 3% of their assets.
Although the 2008 global financial crisis hit the city-state hard (owing to its exposure to inflated real-estate assets), it recovered quickly, as evidenced by its bids for events such as the World Expo 2020.
Whatever the cause, when the risk tolerance of the market crashes, so do prices of risky financial assets.
Everybody knows that there are immense unrealized losses in financial assets, but no one is sure that they know where those losses are.
To buy – or even to hold – risky assets in such a situation is a recipe for financial disaster.
So is buying or holding equity in firms that may be holding risky assets, regardless of how “safe” a firm’s stock was previously thought to be.
This crash in prices of risky financial assets would not overly concern the rest of us were it not for the havoc that it has wrought on the price system, which is sending a peculiar message to the real economy.
General deflation eliminates the capital of yet more financial intermediaries, and makes risky an even larger share of assets that had previously been regarded as safe.
Ever since 1825, central banks’ standard response in such situations – except during the Great Depression of the 1930’s – has been the same: raise and support the prices of risky financial assets, and prevent financial markets from sending a signal to the real economy to shut down risky enterprises and eschew risky investments.
This response is understandably controversial, because it rewards those who bet on risky assets, many of whom accepted risk with open eyes and bear some responsibility for causing the crisis.
A policy that leaves owners of risky financial assets impoverished is a policy that shuts down dynamism in the real economy.
Though investors may bid up prices of existing capital assets, their attempts to save only slow down the economy.
The bottom line: to find out how, when, and where assets will be allocated and wealth generated in dozens of countries across the developed and developing worlds these days, we must now look toward political, not financial, capitals.
For outward FDI, protectionism involves measures that require domestic companies to repatriate assets or operations to the home country, or that discourage certain types of new investments abroad.
But the global downturn may also accentuate protectionism, especially if nationalistic impulses gain the upper hand, perhaps stimulated by fire-sales of domestic assets (as we saw during the Asian financial crisis).
Meanwhile, China’s bank assets amounted to 215% of GDP – more than double America’s 95%.
The key objective of China’s capital controls is to prevent non-residents from holding domestic RMB-denominated assets that are unrelated to trade and long-term capital flows.
But RMB internationalization encourages non-residents to hold more RMBs and RMB-denominated assets.
Fortunately, China’s monetary authority has already noticed the subtlety of the distinction between legitimate demand for RMB-denominated assets and hot money.
At the onset of the crisis, the eurozone’s breakup was inconceivable: the assets and liabilities denominated in the common currency were so intermingled that a breakup would cause an uncontrollable meltdown.
Unlike the economic boost that may occur from recovery spending to restore damaged physical assets, this is a deadweight loss.
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