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Risky in sentence

770 examples of Risky in a sentence

As a result, fear could become a self-fulfilling prophecy: following a run by investors on all other sovereign debtors in the union, fiscal transfers would become inevitable in order to rescue overextended – for example, German – banks that have highly risky loan portfolios.
De-Risking RevisitedNEW YORK – Until the recent bout of financial-market turbulence, a variety of risky assets (including equities, government bonds, and commodities) had been rallying since last summer.
The consequences – sharp capital-flow reversals that are now hitting all risky emerging-market assets – have not been pretty.
Whether the correction in risky assets is temporary or the start of a bear market will depend on several factors.
First, they nudge pioneers to invest in uncertain, risky ventures, with the resulting research-and-development efforts generating highly valuable social benefits.
But that decision, though risky, is not altogether surprising: The US, after all, lacks an effective policy toward Russia’s presence in the Middle East, making it difficult for countries like Israel to stand up to the Kremlin.
Banks’ balance sheets were by then filled with vast amounts of risky mortgages, packaged in complicated forms that made the risks hard to evaluate.
The Fed should take care to prevent any breakdown of liquidity while keeping inflation under control and avoiding an unjustified taxpayer-financed bailout of risky bank loans.
Political decisions taken then were far more risky than those at hand in the Balkans, and the Greek and Iberian success stories demonstrate the wisdom of the courageous decisions taken at that time.
The second major challenge that Xi faces in 2014 is sustaining his highly popular – and hugely risky – anti-corruption campaign.
In 23 years of leadership, he has avoided risky domestic and foreign policies.
But, instead of working incrementally to create strong, targeted regulations, they performed an abrupt about-face, warning investors about risky bubbles and declaring war on margin finance.
But, as America’s partners and allies have noted, this is a highly risky gambit – one that contradicts the underlying logic of the deal.
The issuance of risky junk bonds under loose covenants and with excessively low interest rates is increasing; the stock market is reaching new highs, despite the growth slowdown; and money is flowing to high-yielding emerging markets.
It may be too soon to say that many risky assets have reached bubble levels, and that leverage and risk-taking in financial markets is becoming excessive.
Likewise, less risky treatments are crucial.
In the United States, the National Institutes of Health (NIH) spends more than $37 billion on biomedical research every year, particularly in areas that are too risky for the private sector.
These entities take money from investors and buy various kinds of assets, some of which may be risky – like short-maturity corporate debt.
The deals that banks arrange between borrowers and lenders are the lifeblood of modern economies – and risky work for which bankers deserve to be well rewarded.
Maybe the collapse stems from lousy internal controls in financial firms that, swaddled by implicit government guarantees, lavish their employees with enormous rewards for risky behavior.
Whatever the cause, when the risk tolerance of the market crashes, so do prices of risky financial assets.
To buy – or even to hold – risky assets in such a situation is a recipe for financial disaster.
So is buying or holding equity in firms that may be holding risky assets, regardless of how “safe” a firm’s stock was previously thought to be.
This crash in prices of risky financial assets would not overly concern the rest of us were it not for the havoc that it has wrought on the price system, which is sending a peculiar message to the real economy.
The price system is saying: shut down risky production activities and don’t undertake any new activities that might be risky.
But there aren’t enough safe, secure, and sound enterprises to absorb all the workers laid off from risky enterprises.
General deflation eliminates the capital of yet more financial intermediaries, and makes risky an even larger share of assets that had previously been regarded as safe.
Ever since 1825, central banks’ standard response in such situations – except during the Great Depression of the 1930’s – has been the same: raise and support the prices of risky financial assets, and prevent financial markets from sending a signal to the real economy to shut down risky enterprises and eschew risky investments.
This response is understandably controversial, because it rewards those who bet on risky assets, many of whom accepted risk with open eyes and bear some responsibility for causing the crisis.
A policy that leaves owners of risky financial assets impoverished is a policy that shuts down dynamism in the real economy.
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