Investors
in sentence
4087 examples of Investors in a sentence
This tranquil land of timeless faith, over which Buddha’s benign statues preside – a land of rivers, deep forests, and blood-red rubies – is now in play for international
investors.
For most countries, what we are seeing is a recalibration as
investors
incorporate the risk that China’s GDP might rise more slowly, the US Federal Reserve might start tightening monetary conditions more quickly, and policy backsliding in many countries might undermine potential growth.
Investors
are talking of “green shoots” of recovery and of positive “second derivatives of economic activity” (continuing economic contraction is the first, negative, derivative, but the slower rate suggests that the bottom is near).
At some point,
investors
will realize that bank losses are massive, and that some banks are insolvent.
That seems to be what many
investors
are expecting.
So it is worth asking if
investors
are underestimating the potential for one or more of these conflicts to trigger a more serious crisis, and what it would take to shock them out of their complacency if they are.
A second explanation is that
investors
are extrapolating from previous shocks, such as the attacks of September 11, 2001, when policymakers saved the day by backstopping the economy and financial markets with strong monetary and fiscal policy easing.
And even if
investors
think that another major terrorist attack will come, they cannot know when.
Investors
may be assuming that even if a limited military exchange occurred, it would not escalate into a full-fledged war, and policy loosening could soften the blow on the economy and financial markets.
So, while
investors
may be right to discount the risk of a conventional military conflict between the US and North Korea, they also may be underestimating the threat of a true black swan event, such as a disruptive cyberwar between the two countries or a dirty bomb attack against the US.
Before the 2008 financial crisis, CDSs were an esoteric product, known only to a restricted number of sophisticated
investors
and specialized academics.
An increase in the stock price of steel manufacturers suggests an increase in the demand for steel, which induces entrepreneurs to start more steel plants and
investors
to provide them with the money.
Conversely, a decrease in the stock price of steel manufacturers leads entrepreneurs to liquidate existing plants and dissuades
investors
from committing more resources to the sector.
Given the large misallocation of resources in such cases, it is vital to understand why prices failed to provide an accurate signal to
investors.
In other words, the traditional securities available to
investors
make it easier to bet in favor of a company than against it, causing prices to be affected more by irrational exuberance than by panics.
To express a negative view via the CDS market,
investors
do not need to locate securities to borrow (a prerequisite to shorting), and they risk only a limited premium, while they have the opportunity to gain many times that.
In fact,
investors
have long accepted real (inflation-adjusted) negative returns.
Investors
accept negative returns for the convenience of holding cash balances, so, in a sense, there is nothing new about negative nominal interest rates.
But why would
investors
accept a negative nominal return for three, five, or even ten years?
In Switzerland and Denmark,
investors
want exposure to a currency that is expected to appreciate in nominal terms.
So, why are
investors
holding such assets?
Many long-term investors, like insurance companies and pension funds, have no alternative, as they are required to hold safer bonds.
But, given such
investors'
long-term liabilities (claims and benefits), their mandate is to invest mostly in bonds, which are less risky than stocks or other volatile assets.
Moreover, in a “risk-off" environment, when
investors
are risk-averse or when equities and other risky assets are subject to market and/or credit uncertainty, it may be better to hold negative-yielding bonds than riskier and more volatile assets.
Foreign
investors
are already reshuffling their portfolios, moving into euros, pounds, and even emerging-market currencies like the Brazilian real and the South African rand.
This year alone, the dollar’s value has fallen by another 10% in purchasing power terms against America’s major trading partners, and it could fall at the same rate in 2008 – or faster if global
investors
decide to cut and run.
A Yukos AutopsyYukos, once Russia’s leading oil company and a favorite of international investors, is in its death throes.
Even the nationalization of Yukos’s assets may reflect little more than the absence of alternative buyers, given the obvious political obstacle passing those assets on to other domestic private-sector players (i.e., oligarchs), and the legal and reputational barriers to foreign
investors.
Governments are cutting back public investment in the name of budget balance, and private
investors
cannot invest robustly and securely in alternative energy when publicly regulated power grids, liability rules, pricing formulas, and national energy policies are uncertain and heavily disputed.
In such circumstances, risk-averse investors, especially those more directly in harm’s way along Asia’s Pacific Rim, will want to insure against an adverse event by taking advantage of the expected financial-market effects now.
Back
Next
Related words
Their
Foreign
Would
Financial
Markets
Which
Market
Companies
Private
Assets
Capital
Rates
Other
About
Interest
Government
Institutional
Countries
Global
Economic