Equity
in sentence
1327 examples of Equity in a sentence
Such requirements would not prevent useful capital flows: global banking groups could invest
equity
in emerging markets and fund their subsidiaries’ balance sheets with long-term debt.
But doesn’t the banks’ ability to raise new
equity
capital indicate that, regardless of whether the stress tests are reliable, investors believe that their assets’ value does significantly exceed their liabilities?
If in two years the bank’s assets have a 50-50 chance of appreciating to $1.2 billion or declining to $0.8 billion, the bank will be able to raise new
equity
capital: new investors will be willing to pay for the prospect of sharing in the excess of the value of assets over obligations if things turn out well.
The kind of stress tests that the US conducted, and that other countries are being urged to emulate – and the ability of banks to raise additional
equity
capital – cannot provide a basis for such a conclusion.
took the crowdfunding concept further than ever, creating the first truly global crowd-investing marketplace that offers
equity
in funded companies.
It would be far better simply to require banks to raise much more of their resources in
equity
markets instead of through bonds.
Prime borrowers with good credit scores and investment-grade firms are not experiencing a credit crunch at this point, as the former have access to mortgages and consumer credit while the latter have access to bond and
equity
markets.
Credit lines secured by home
equity
provided another new way to finance spending.
Home prices fell 40%, completely wiping out the
equity
of one-third of all homeowners with mortgages.
Policy debates in the US are chiefly preoccupied with ensuring that banks are never “too big to fail”; that private investors rather than taxpayers hold “contingent capital,” which in a crash can be converted into equity; and that “over-the-counter” markets’ functioning be improved through greater reliance on centralized trading, clearing, and settlements.
In other words, they would not wrap themselves up in their institutions’
equity
and the leveraged products they were selling.
Will it lead to a persistent increase in risky assets, especially in US and other global
equity
markets?
Finally, will its effects on GDP growth and
equity
markets be similar or different?
After all, while the previous rounds of US monetary easing have been associated with a persistent increase in
equity
prices, the size and duration of QE3 are more substantial.
Consider, first, that the previous QE rounds came at times of much lower
equity
valuations and earnings.
If, as is likely, economic growth in the US remains anemic in spite of QE3, top-line revenues and bottom-line earnings will turn south, with negative effects on
equity
valuations.
The only other significant channel to transmit QE to the real economy is the wealth effect of an equity-market increase, but there is some circularity in the argument that QE3 will lead to a persistent rise in
equity
prices.
If persistent asset reflation requires a significant GDP growth recovery, it is tautological to say that if
equity
prices rise enough following QE, the resulting increase in GDP from a wealth effect justifies the rise in asset prices.
Senior Fed officials emphasize that big banks fund themselves with more
equity
now than they did in the past.
If anything, in his most recent speech, Fischer seemed to brush aside any such fears – assuring his audience that there is great social value in continuing to have extremely large financial firms that operate with so very little
equity
capital (and therefore a great deal of leverage).
He accused entrepreneurs who outsource production to low-wage countries of showing excessive greed and lack of social responsibility, and he compared the managers of international
equity
funds to a plague of locusts that occupy companies, exploit them, and move on after their destructive work is done.
International
equity
funds stepped in, providing companies with urgently needed liquidity while disentangling the traditional ownership network.
This is what happens when financial executives are compensated for “return on equity” unadjusted for risk.
Because extremely low interest rates during the past decade caused
equity
prices to rise to unprecedentedly high levels, the shift to higher interest rates will slow and depress share prices.
– who agree with the optimists about the scale and scope of innovation but fret about the adverse implications for employment or
equity.
The consequences of any innovation for productivity, employment, and
equity
ultimately depend on how quickly it diffuses through labor and product markets.
The world’s 190-plus states now co-exist with a larger number of powerful non-sovereign and at least partly (and often largely) independent actors, ranging from corporations to non-government organizations (NGO’s), from terrorist groups to drug cartels, from regional and global institutions to banks and private
equity
funds.
This type of single accounting would reduce the central bank’s
equity
capital, unless it realized (sold) valuation reserves on its balance sheet.
Add to that the impact of the depletion of valuation reserves and the risk of negative
equity
–developments that could undermine the credibility of central banks and thus of currencies – and it seems clear that helicopter drops should, at least for now, remain firmly in the realm of academic debate.
Capital flows – in the form of
equity
and bond purchases, foreign direct investment, and lending – fell by over two thirds, from $11.9 trillion to $3.3 trillion, between 2007 and 2015.
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