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Equity in sentence

1327 examples of Equity in a sentence

So a final element of the package ought to be a monitored pledge by eurozone banks that they will not unload bonds as the official sector steps in; that they will raise capital over time instead of continuing to deleverage (if this hurts bank equity holders, they should think of this as burden sharing); and that they will be circumspect about banker bonuses until economies start growing strongly again.
Moreover, their stock-market dominance has hindered the healthy development of China’s capital market; they not only crowd out scarce resources for equity capital, but also complicate the normal operation of the market for mergers and acquisitions.
Globally, the unprecedented monetary and fiscal stimulus following the 2008 financial crisis has caused debt, equity, and property prices to peak, even as trade and investment decline; all of this has depressed demand, economic growth, and inflation.
China’s government then stepped in with measures to stabilize equity prices.
Second, Chinese balance sheets carry too much debt relative to equity.
Unlike equity, a debt security is a nominal claim whose value does not vary depending on the inflation rate.
The bank-market ratio – the size of the banking sector relative to the size of equity and bond markets – roughly doubled in the UK and Germany in little more than a decade, while the ratio remained stable in the US, and at a much lower level.
The comparable figure is nearer 20% in the US, where, as in the UK, equity and debt capital markets play a much more important role in financing business investment.
Alternatively, an executive wishing to unload equity could be permitted to sell the shares in the market, but only gradually, according to a pre-specified, automatic plan that would be self-executing (say, one-sixth of the number of shares the executive seeks to sell on the first trading day of each of the subsequent six months).
The company’s board should set the schedule in a way that ensures that executives always retain the desired level of equity ownership.
That supposition liberated the Fed from fear of the dreaded “zero bound” that it was approaching in 2003-2004, when, in response to the collapse of the equity bubble, it lowered its benchmark policy rate to 1%.
Having more than doubled since its crisis-induced trough, the US equity market – not to mention its amply rewarded upper-income shareholders – has been the principal beneficiary of the Fed’s unconventional policy gambit.
Banks also provide critical services to governments and business, by providing direct access to global buyers of debt and equity, and by establishing large, consistent markets of buyers and sellers.
Within the Muslim Middle East, the oil-rich states score much lower on indices of gender equity than oil-poor states such as Morocco, Tunisia, Lebanon, and Syria.
That included proposals to publish a report on gender pay equity, and one on the public-policy issues associated with managing fake news and hate speech, including the impact on the democratic process, free speech, and a cohesive society.
America has a special procedure for corporate bankruptcy, called Chapter 11, which allows a speedy restructuring by writing down debt, and converting some of it to equity.
It is better to inject equity into the banks now rather than later, and it is better to do it on a Europe-wide basis than leave each country to act on its own.
Financial market deregulation in an un-named country sets off a credit boom and an explosion in equity and real estate prices.
The crash in equity prices since 2000 in most countries has made financial assets look less secure, spurring a "flight to quality" - in this case, housing.
The new rules require that no more than 30% of bankers’ bonuses be paid in cash, that between 40% and 60% be deferred for at least three years, and that at least 50% be invested in “contingent capital,” a new form of debt that converts to equity when a financial company is in distress.
If the problem is the moral hazard implied by being too big to fail, the solution is not to restrict pay, but to eliminate the hazard by forcing shareholders to issue more equity or lose their stock when banks’ debt starts to become risky.
The need for banks to finance themselves with more equity and relatively less debt will be the focus of one of the main publishing events in economics in 2013.
Do we need financial institutions to be so highly leveraged (that is, carrying so much debt relative to equity)?
If banks of all kinds were financed with more equity, they would have stronger buffers to absorb losses.
Both the equity and the debt issued by well-capitalized banks would be safer – and therefore cheaper.
Indeed, unconventional monetary policies in the US and other advanced economies have already led to massive asset-price reflation, which in due course could cause bubbles in real estate, credit, and equity markets.
Moreover, they argue that the cost of any increase in required equity capital would simply be passed on to borrowers in the form of higher interest rates, bringing economic growth to a grinding halt.
Before, during, and just after the 2007-2008 financial crisis, this provided an advantage equivalent to more than one-third of the largest US banks’ equity value.
Back in September 2008, when then-US Secretary of the Treasury Hank Paulson introduced the $700 billion Troubled Asset Relief Program (TARP), he proposed using the funds to bail out the banks, but without acquiring any equity ownership in them.
Because equity could support a balance sheet that would have been 20 times larger, $700 billion could have gone a long way toward restoring a healthy financial system.
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