Funds
in sentence
2629 examples of Funds in a sentence
The International Monetary Fund, for example, has just warned Ukraine that its $40 billion financial bailout could be cut off, owing to fears that corrupt officials will steal or squander the
funds.
Because households can resort to safe-deposit boxes, it’s hard for banks to charge depositors for safekeeping their
funds.
Most of these
funds
are now invested in dollar securities.
While some of the
funds
serve that purpose and must be held in the most liquid form, most of these large holdings are investment
funds
that will be managed to balance risk and return.
Despite efforts to promote fiscal-policy coordination, eurozone members’ budgets still fall under the purview of separate national authorities, and northern Europeans continue to oppose transfers from more to less prosperous countries beyond the very limited allowance of the European Union’s regional
funds.
Indeed, in recent years, eurozone authorities have introduced several policies for fighting financial crises – including government-backed rescue funds, a partial banking union, tougher fiscal controls, and a role for the European Central Bank as lender of last resort.
In the United States alone, the $3.8 billion in public
funds
invested in the Human Genome Project has already generated close to $1 trillion in economic returns and more than 300,000 jobs.
The Hedge Fund HegemonThe recent volatility in global capital markets should give pause to those who say German leaders, who have been arguing for greater transparency in global hedge funds, are just sore losers US and UK policymakers, in particular, say the German whining is nonsense, and that hedge funds, along with other new age financial entities such as private equity firms are key innovators in today’s, global economy.
Of course, roughly 1,000 of the world’s 9,000 hedge
funds
went out of business last year.
If they lose, a long string of bankruptcies can cut deeply into banking systems that had generated huge profits by lending to these same hedge
funds.
Hedge
funds
have borrowed hundreds of billions of dollars at ultra-low interest rate in Japan, and invested the proceeds in countries like Brazil and Turkey, where interest rates are high.
But if the yen appreciates sharply, as it easily could given Japan’s huge current account surplus, some hedge
funds
will suffer huge capital losses and the yen carry trade will implode.
The Germans, for example, want to reduce risk by forcing hedge
funds
to adhere to stricter reporting requirements.
The
funds
respond to such proposals by arguing that if they are required to reveal their investment strategies, they will lose their incentive to innovate, and a recent US government report – a multi-agency effort headed by Treasury Secretary Hank Paulson (formerly of Goldman Sachs) – supports that position.
Greater regulation would be a mistake, the report argues, because the global economy’s best defense against systemic risk is the exercise of common sense and “due diligence” by each and every person who invests or interacts with hedge
funds.
Major hedge
funds
are presumably looking for ways to become bigger and take on “systemic importance.”
If all goes well, these hedge
funds
– and of course the banks that are already undoubtedly Too Big to Fail (TBTF) – get a great deal of upside.
The US Federal Reserve will thus continue to raise the federal
funds
rate from its current 2% to at least 3.5% by 2020, and that will likely push up short- and long-term interest rates as well as the US dollar.
And fixed-income instruments have become more concentrated in open-ended exchange-traded and dedicated credit
funds.
The private sector can shift investment toward renewables through new financial instruments like credit guarantees and currency swaps, co-investment funds, and green bond markets.
For example, the plan would raise
funds
via the IPO of a small part (up to 5%) of Saudi-Aramco, the giant oil conglomerate, and invest the proceeds in a broader range of assets around the world.
The US Federal Reserve has, in my judgment, responded appropriately by reducing the federal
funds
interest rate sharply and creating a variety of new credit facilities.
It is equally important to address bank secrecy, which facilitates corruption by providing corrupt dictators with a safe haven for their
funds.
In the strongest of the three economies, the Fed is willingly risking inflation by pre-announcing its intention to keep the federal
funds
rate at exceptionally low levels “at least through mid-2015.”
Third, not only is fixed income more illiquid, but now most of these instruments – which have grown enormously in number, owing to the mushrooming issuance of private and public debts before and after the financial crisis – are held in open-ended
funds
that allow investors to exit overnight.
Imagine a bank that invests in illiquid assets but allows depositors to redeem their cash overnight: if a run on these
funds
occurs, the need to sell the illiquid assets can push their price very low very fast, in what is effectively a fire sale.
In short, though central banks’ creation of macro liquidity may keep bond yields low and reduce volatility, it has also led to crowded trades (herding on market trends, exacerbated by HFTs) and more investment in illiquid bond funds, while tighter regulation means that market makers are missing in action.
Herding in the opposite direction occurs, but, because many investments are in illiquid
funds
and the traditional market makers who smoothed volatility are nowhere to be found, the sellers are forced into fire sales.
Substantial public rescue
funds
have reportedly been siphoned off to foreign banks, Goldman Sachs, and staff bonuses for purposes unrelated to protecting public interests.
Up to this point, global humanitarian aid targeting education has accounted for less than 2% of
funds
pledged.
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