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Assets in sentence

2739 examples of Assets in a sentence

Three Cures for Three CrisesA full-scale financial crisis is triggered by a sharp fall in the prices of a large set of assets that banks and other financial institutions own, or that make up their borrowers’ financial reserves.
Once everybody is sure that, no matter how much others panic, financial institutions won’t have to dump illiquid assets at a loss, the panic will subside.
Banks are highly leveraged institutions with relatively small capital bases, so even a relatively small decline in the prices of assets that they or their borrowers hold can leave them unable to pay off depositors, no matter how long the liquidation process.
Yes, the financial system is insolvent, but it has nominal liabilities and either it or its borrowers have some real assets.
China’s investment in strategic assets like the Gwadar Port in Pakistan has reinforced India’s anxiety.
Indeed, amid rising concern about banks’ troubled assets, defusing financial risk has become the authorities’ central goal.
According to the official numbers, NPLs do not actually account for a very high share of total assets, and the NPL ratio (0.96%) is manageable.
Banks’ exposure to local-government debt and the real-estate market has already undermined the quality of their assets, increasing debt pressure and weakening profitability.
Against his background, troubled assets will continue to be converted into liabilities.
China has historically approached broad-scale relief of troubled assets through three channels – capital injections, asset-management companies (AMCs), and the People’s Bank of China (PBOC) – all of which have serious downsides.
The Bush administration’s Troubled Asset Relief Program and the Obama administration’s financial rescue plan cost nearly $2.2 trillion, with the Federal Reserve purchasing a massive amount of banks’ assets.
In supporting financial-sector deleveraging, the Fed itself became highly leveraged, and troubled assets still plague its balance sheet.
The PBOC already has called for banks to securitize their high-quality assets and sell the securities to interbank-market investors; that could be a prelude to troubled-asset securitization.
By selling troubled assets in the secondary market, commercial banks could strengthen their balance sheets while avoiding liability increases and enhancing asset liquidity.
But securitization creates its own challenges, such as how to price the assets.
Such measures could offer the security and credibility needed to enable the successful securitization of troubled assets, paving the way for China’s leaders to deepen financial reform.
Many readers know how money-market funds work: An investor buys a $1.00 share from the XYZ fund, which keeps each share’s value at a constant $1.00, allowing the investor to believe that the money – invested in a pool of safe, secure, but not always government-guaranteed assets – is on deposit.
Since much of the money-market funds’ assets are IOUs from the world’s biggest banks, the withdrawals weakened the already-shaky global banking system.
With the world’s richest 1% now owning 40% of its assets, the benefits of growth are not being shared in a way that is either economically efficient or politically sustainable.
It rose briefly during the peak crisis year of 2008, as global investors sought the safe haven of dollar-denominated assets, but retreated during 2009 to its previous level.
Moreover, they fuel productivity gains by investing in assets, research and development, and job training at a higher rate than small and medium-size firms, though the latter are also essential elements of successful countries’ business ecosystems.
After all, higher private consumption implies an end to China’s surplus saving – and thus to the seemingly open-ended recycling of that surplus into dollar-based assets such as US Treasury bills.
Interest-rate spreads between safe and risky assets are natural to functioning credit markets.
Public investment serves to accumulate assets, rather than consume them.
So long as the return on those assets exceeds the cost of funds, public investment in fact strengthens the government’s balance sheet.
In light of these new realities, the sell-off of emerging-market assets this year actually means that value and risks are better aligned.
Third, while the relative illiquidity of emerging markets has always demanded extra care, the liquidity risk premium for emerging-market assets may be more pro-cyclical than in the past.
Today, the hierarchy of emerging-market assets has been flipped on its head.
Economic liberalization, deregulation of capital movements, suppression of subsidies, privatization of valuable public assets (liquidation would be a more appropriate word), fiscal austerity, high interest rates, and repressed demand became the order of the day.
Third, unlike other assets, gold does not provide any income.
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