Equity
in sentence
1327 examples of Equity in a sentence
In the same report, the IMF rang alarm bells over potential
equity
bubbles, pointing out that “stock prices are currently above trend levels in most countries, with signs of stretched valuations in a few countries (Chile, Colombia, and Peru).”
Asia’s economies were built on debt finance more than
equity
finance.
The banks made large loans to undercapitalized enterprises, which were thereby able to expand rapidly despite a shortage of
equity
capital.
One key step, therefore, is a large-scale conversion of enterprise debt to
equity.
The banks would no longer hold unpayable debt, but rather marketable
equity.
This
equity
could then be sold to foreign and domestic investors.
When the euro was introduced, regulators allowed banks to buy unlimited amounts of government bonds without setting aside any
equity
capital, and the ECB discounted all eurozone government bonds on equal terms.
The growing involvement of private
equity
groups in M&A activity implies additional controversy, as such transactions are typically regarded as being purely speculative.
What matters is a sense of
equity
and fair play.
But existing asset classes all too often fail to provide the structure needed for these projects to compete with traditional
equity
or debt.
In order to overcome the obstacles to investment, we propose the creation of an asset class that we call “buy-and-hold
equity"
(BHE).
This asset class would sit between traditional
equity
and debt, with investors able to hold it for 15 years or longer.
It would offer returns close to those yielded by
equity
investments, but with some of the risk offset by its long-term nature.
Finally, the regulated nature of cash flows would allow for better pre-defined return structures than traditional private or public
equity
can offer.
In today’s uncertain world, social turmoil, gender deprivation, and rising conflict have tested countries’ abilities to create jobs, promote gender equity, equip young people with skills, and design effective social protection programs.
GDP growth has slowed sharply; corporate-debt ratios are unprecedentedly high; the currency is sliding;
equity
markets are exceptionally volatile; and capital is flowing out of the country at an alarming pace.
This was certainly true in the 1980’s and early 1990’s, when right-wing ideology dominated, producing a one-size-fits-all prescription entailing privatization, liberalization, and macroeconomic stability (meaning price stability), with little attention to employment, equity, or the environment.
Of the 14 indicators of progress associated with the primary gender
equity
goal, SDG 5, most countries are measuring just three.
The benefits of gender
equity
are also apparent when women have access to basic financial services, like credit and savings accounts, which enable them to start businesses and save money for family essentials.
As a result, while sliding
equity
markets and a further decline in oil (and other commodity) prices have sparked much talk of another global recession, dire predictions are likely to prove overly gloomy and misdirected.
But the really big bucks come from the fact that places like the People’s Bank of China and the Bank of Japan passively hold enormous volumes of low-interest US debt, while Americans romp around the world with venture capital, private equity, and investment banks, reaping huge gains.
Admati and her colleagues recommend requirements that force financial firms to generate
equity
funding either through retained earnings or, in the case of publicly traded firms, through stock issuance.
The status quo allows banks instead to leverage taxpayer assistance by holding razor-thin
equity
margins, relying on debt to a far greater extent than typical large non-financial firms do.
Greater reliance on
equity
would give banks a much larger cushion to absorb losses.
The financial industry complains that efforts to force greater
equity
funding would curtail lending, but this is just nonsense in a general equilibrium setting.
The fashionable idea of allowing banks to issue “contingent capital” (debt that becomes
equity
in a systemic crisis) is no more credible than the idea of committing to punish banks severely in the event of a crisis.
Its activities should include raising capital
(equity
and debt) for global education; providing investment-banking services to governments, businesses, and multilateral agencies in cooperation with local banks; and offering consulting and advisory services for public-private partnerships, privatization, decentralization, loans, and concessionary finance negotiations.
Indeed, the massive
equity
and housing price increases of the past dozen or so years probably owe as much to greater macroeconomic stability as to any other factor.
But if a major flare-up causes investors to lose confidence in low volatility, the bottom could fall out from under
equity
and housing prices.
New “green banks” can help to bring in funding from debt and
equity
markets.
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