Overhang
in sentence
143 examples of Overhang in a sentence
There's an
overhang
of capital in the U.S., and the key is yield pickup.
As a result, there is an
overhang
of illiquid financial institutions, whose holdings could be unloaded if they run into difficulties.
Here are some ways to reduce the
overhang.
Moreover, once a sufficient number of distressed entities sell their assets, prices will rise simply because there is no longer a potential
overhang
of future fire sales.
This differs substantially from the current approach (in which well-capitalized entities are given even more capital), which does not deal with the
overhang
of illiquid assets that more distressed entities hold.
Unless the regulated financial system is systematically audited, with weak entities stabilized through capital injections, asset purchases, or mergers, or liquidated quickly, the
overhang
of distressed institutions will persist, constraining lending.
Austerity and Debt RealismCAMBRIDGE – Many, if not all, of the world’s most pressing macroeconomic problems relate to the massive
overhang
of all forms of debt.
Moreover, the debt
overhang
remains massive.
It is also increasingly plausible that the debt
overhang
is itself becoming the cause of slow growth.
The concept of a debt
overhang
has been around forever, but it became prominent during the Latin American debt crisis of the 1980’s.
A debt
overhang
exists when a country’s debt is large enough that the benefits of adjustment and growth go entirely to the creditors.
And, because the proceeds of any new investment will be taxed away to service existing obligations, the debt
overhang
discourages private investment and growth.
When those bubbles burst, consumers were left with a massive
overhang
of excess debt and subpar saving.
Economic growth can indeed continue to be severely depressed by a debt
overhang
even when credit supply is unrestricted and cheap.
By contrast, a large debt
overhang
may be intractable unless policy orthodoxies are challenged.
Any country that enters a period of heightened risk aversion with a large debt
overhang
faces only bad choices.
As in the past, during and after financial crises and wars, central banks increasingly resort to a form of “taxation” that helps liquidate the huge public- and private-debt
overhang
and eases the burden of servicing that debt.
In fact, near-zero interest rates undermine the very notion of a “debt overhang” in countries like Greece, Ireland, Portugal, and Spain.
The bigger issue is the “debt overhang” that has forced European governments to pursue this course.
There is a simple way to deal with a debt overhang: reduce payments by restructuring the debt.
In both cases, the main argument for not removing the debt
overhang
came from bankers, who claimed that it would create havoc in financial markets for two reasons.
Fifth, the combination of unfavorable demographics and
overhang
of empty homes will prevent a strong recovery in the housing market.
The theory of “debt overhang” – the intellectual origin of the proposal – explains why troubled banks are reluctant to issue new equity: the benefits accrue mostly to the bank’s bondholders and dilute existing shareholders.
Wasn’t the same problem of debt
overhang
prominent in the banking crises of the Great Depression, for example?
Although there are many explanations for the eurozone’s lagging recovery, it is clear that the
overhang
of both public and private debt looms large.
Debt
overhang
traps countries in a vicious circle.
Moreover, they know from experience that there are no easy and immediate solutions to the West’s debt
overhang
and structural impediments to growth.
And, with Americans facing a debt overhang, rapidly increasing unemployment (and the worst unemployment compensation system among major industrial countries), and falling asset prices, they are likely to save much of the tax cut.
Yet, despite the tremendous social pain, this approach will make no dent in their large and rising debt
overhang.
The collapse of asset bubbles in the 1990’s left Japan’s financial system and private sector saddled with a huge debt
overhang.
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