Collateral
in sentence
330 examples of Collateral in a sentence
They are not getting enough out of monetary expansion at this point; the risk of
collateral
damage and unintended consequences is rising; and pro-growth structural reforms are overdue.
What this means is simpler than it sounds: the rising value of
collateral
tends to be seen as offering higher repayment probabilities.
If asset-price bubbles develop, balance sheets may look sound individually, but the entire network of interlinked asset-liability structures will become increasingly dependent on overvalued collateral, and thus vulnerable to financial contagion.
In the advanced economies at the core of the recent financial crisis, the rules, implicit or explicit, of strict inflation-targeting regimes led monetary authorities to stay put while a massive pyramid of debt was built on a base of overvalued
collateral.
They could buy bad loans from lenders and forgive part of the principal payable by borrowers, simultaneously reducing lenders’
collateral
requirements and borrowers’ debt overhang.
Ideally, such a plan would include European resources as well as local reforms, and it would address insolvency-regime inefficiencies, so that banks are not burdened with non-performing loans while they wait for a court’s approval to convert
collateral.
Success in rebooting the economy will depend on ensuring that the extra cash goes into the hands of those who are constrained in their spending by low incomes and a lack of
collateral
assets.
In other words, investors have agreed to finance corporate debt by using monopoly wealth as collateral, and most trading in the stock market can therefore be thought of as traded ownership of monopoly wealth.
The wars’
collateral
damage has been massive: by some accounts, more than a million Iraqis have died, directly or indirectly, because of the war.
But some of the largest funds – in fact, most of the brand names in the industry – use the clever trick of securing the debt they issue with
collateral
owned by the company they buy.
A bank or mortgage originator lends you a large amount of money, which is secured by the house as
collateral.
However, before graduates flock to private equity, they should know that only the very big funds can use debt to skew returns for insiders in this way, primarily because only they can raise the capital needed to buy well-established companies that are rich in fixed assets, and thus in potential
collateral.
But its continued success depends ultimately on the credibility of the WTO itself; it will inevitably suffer
collateral
damage from a failure of multilateral negotiations.
Short- and long-term interest-rate spreads are determined by the economy’s creditworthiness, and whoever wants low interest rates has to provide real
collateral.
Moreover, the goods that are easiest to buy are those that are easy to post as
collateral
– houses and cars, rather than perishables.
The
collateral
effect, however, is that even honest officials are now too frightened to help corporations to navigate India’s maze of bureaucracy.
Although the stronger real will help US exporters (other things being equal) and hurt those in Brazil, such “casualties of war” are not even
collateral
damage; rather, they are precisely the point.
While Nigerian President Goodluck Jonathan and United Nations Secretary-General Ban Ki-moon have condemned the army’s heavy-handed approach, this is not the first time that clashes with extremists have caused significant
collateral
damage – and it almost certainly will not be the last.
Moreover, not forbidding indirect purchases should be seen primarily as a means of permitting banks that buy government bonds to pledge them as
collateral
for refinancing operations, while bearing the full investment risk.
To some banks, this is just
collateral
damage: millions of Americans – in addition to the estimated four million in 2008 and 2009 – still have to be thrown out of their homes.
Likewise, while the European Central Bank’s
collateral
policy imposes different “haircuts” on bondholders depending on a country’s credit rating, it discriminates little between countries.
A European debt agency would purchase eurozone countries’ sovereign bonds, weighted according to each country’s contribution to the eurozone’s GDP, and use them as
collateral
to issue two securities.
It was only after a massive balance-of-payments crisis in 1991, when India’s government literally had to ship its gold reserves to London to serve as
collateral
for an International Monetary Fund loan, that India liberalized its economy under then-Finance Minister (now Prime Minister) Manmohan Singh.
Investors worldwide are willing to pay extraordinarily high prices for, and accept extraordinarily low interest rates on, core-economy debt, for they value as an extraordinary benefit having a safe asset that they can use as
collateral.
The exemption for secured debt undoubtedly concerns mainly the refinancing loans that the ECB has extended to commercial banks against increasingly weak
collateral.
His huge wealth was the
collateral
for his honesty.
The EFSF could then conduct very large purchases of government debt by levering up its limited capital through ECB refinancing, using the government bonds it is buying as
collateral.
After all, property
collateral
is the bedrock of the Chinese financial system, with estimates of banks’ direct and indirect exposure to real estate ranging from 66% to 89% of GDP.
What would the United States and Israel do if Iran carried its threat to the point of evacuating its cities, or placing missiles in its own cities to ensure that any attack on them would cause massive
collateral
damage?
Indeed, the combination of declining
collateral
and rising bad debt squeezed Japanese banks, which were too weakly capitalized to bear large losses.
Back
Next
Related words
Damage
Banks
Their
Would
Financial
Loans
Which
Could
Government
Assets
Credit
System
Crisis
Value
Other
Markets
Against
Unintended
Bonds
About