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Equity in sentence

1327 examples of Equity in a sentence

Second, with banks losing substantial amounts of equity capital – estimates now reach $300 billion and more – the need to maintain minimum equity-debt ratios will force them to curtail business lending, hindering investment demand.
But the Fed cannot endow the banks with new equity capital and prevent a credit crunch.
Under an international agreement known as Basel III, banks are to be required to hold a higher ratio of equity capital against “risk-weighted assets,” and leverage is to be limited to a smaller percentage of such assets.
But, when it comes to upping equity requirements against “risk-weighted assets,” who is to do the weighting, and according to what methodology?
But risk-sharing is also about deepening capital markets, especially for equity, which is why we also need to advance quickly with a capital markets union.
But a new book, Private Equity at Work, by Eileen Appelbaum and Rosemary Batt, explains exactly how a few people have become immensely rich through the shrewd strategic use of debt.
The authors present a broad, detailed, and fair assessment of private equity – the business of investing in established companies through debt-financed purchases of controlling stakes.
(By contrast, venture capitalists support start-ups almost entirely through equity.)
And yet there is a major difference between how private equity operates and how a family buys a home.
Only a small part of the equity ownership acquired by any private equity fund comes from money provided by the partners who found and operate the fund.
The US tax code allows interest payments to be deducted as a business expense; there is no equivalent allowance for payments to equity investors.
Interestingly, when returns are measured properly, the outside “limited” partners in private equity – including pension funds, insurance companies, and university endowments – also do not necessarily do so well.
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 China has not avoided the third mismatch, between debt and equity: The credit-to-GDP ratio doubled over the last decade, from about 110% in 2008 to 220% in 2017, highlighting China’s under-developed long-term capital and equity markets.
Nor can policymakers afford to ignore the fourth mismatch – between ultra-low nominal interest rates and the relatively higher risk-adjusted return on equity (ROE) for investors – which has contributed to speculative investment and widening wealth and income inequality.
China could create a system in which broad equity stakes – held by pension, social security, or sovereign wealth funds – are professionally managed, thereby guaranteeing not only that the long-term risk-adjusted ROE is higher than the real (inflation-adjusted) GDP growth rate and the nominal interest rate, but also that the gains are shared widely among the population.
And we have done all of this with nearly a 300% return over ten years and a 19% return on equity, demonstrating that it is possible to employ a development-focused agenda that delivers for shareholders and stakeholders.
First, whereas in equity markets, few advocate investing in just one company’s shares rather than a diversified portfolio, that is essentially what happened in FX markets, where the traditional way of investing in the carry trade was to use a single exchange rate.
More specifically, exchange rates such as the Australian dollar/yen became strongly correlated with global equity markets.
This meant that an investor who was pessimistic about equities, but who might face constraints in hedging that risk by using derivatives or selling equities short, could reduce his exposure to equity markets by reversing the carry trade – borrowing in Australian dollars and investing in Japanese yen, for example.
No one now denies that the past year’s sharp downswings in housing and equity prices, which followed long upswings – far above historical benchmark levels – helped to trigger and fuel the crisis.
If institutions that were heavily exposed had understood this, they would have raised their capital buffers during the run-up in housing and equity prices in order to protect themselves against the inevitable reversals.
Germany is resisting the risk-sharing elements of such a union: common deposit insurance, a common fund to wind up insolvent banks, and direct equity recapitalization of banks by the ESM.
We have the resources and knowledge to achieve far greater prosperity, equity, and sustainability.
With Lebanese politics persistently in a quagmire, the new leadership must establish a sound fiscal regime and a robust governance framework to ensure transparency in energy exploitation and production, fiscal sustainability, and intergenerational equity.
Rather, the fear is that plunging equity prices mean that China’s economy is going down the tubes.
As the recession deepens, however, bank balance sheets will be hammered further by a wave of defaults in commercial real estate, credit cards, private equity, and hedge funds.
Using bank credits to speculate in equity and housing markets is still mostly forbidden.
The council wants Port Phillip to be a sustainable community, not merely in an environmental sense, but also in terms of social equity, economic viability, and cultural vitality.
This is the exact opposite of short-selling in equity markets, where being wrong means that the risk automatically increases.
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