Securities
in sentence
720 examples of Securities in a sentence
But when house prices fell and mortgage-backed
securities
(and derivatives based on them) became illiquid, Citigroup took the liabilities back onto its balance sheet – and then needed to be rescued through massive, repeated bailouts.
The Wolf of Wall Street was a predator, but so were all those reputable investment banks that shorted the products they were selling, and the retail banks that offered mortgages to unviable borrowers, which they could then repackage and sell as investment-grade
securities.
The same is true of unconventional interventions in markets for corporate bonds and mortgage-backed
securities.
Some will say that the way for central banks to ensure their independence is to abandon macroprudential and microprudential policies and foreswear unconventional interventions in
securities
markets.
In the US, for example, new
securities
laws were passed following the stock market crash of 1929, and the Sarbanes-Oxley Act was adopted in 2002, in the immediate aftermath of the collapse of the Internet bubble and the Enron and WorldCom scandals.
The Bank of Japan already holds government
securities
worth 40% of GDP, and it is committed to annual purchases worth 16% of GDP within the framework of Prime Minister Shinzo Abe’s economic revitalization agenda.
And the market is prone to temporary fits of shared enthusiasm – for emerging-market debt, for Internet stocks, for residential mortgage-backed securities, for Greek government debt.
They fear, for example, that additional
securities
purchases by the European Central Bank, aimed at bringing down Spain’s borrowing costs, would only lead the Spanish government to relax its reform effort.
In financial markets, an unexpected collapse in real-estate
securities
and design defects in the derivatives and repo markets combined to damage core financial institutions’ ability make good on their payment obligations.
Financial firms sell assets, like Treasury bonds or real-estate securities, for cash, and promise to buy those assets back (i.e., to repurchase them or, for short, to do a “repo”), typically the following day.
US government
securities
provided collateral for them.
For example, TISA negotiations in the fields of finance, securities, and legal services have resulted in no restrictions on foreign ownership or the scope of business.
Some officials argue that foreign investors’ appetite for US government debt – the rest of the world holds almost half of all outstanding Treasury securities, worth more than $6 trillion – insulates America from economic harm.
Officials in important emerging-market economies chose to accumulate Treasury securities, because US yields, albeit low, were higher than in other advanced economies.
How can an enterprise being restructured, say, find a way to issue
securities
for financing if it cannot meet conventional standards such as profitability and net asset value, as required by the Company Law and the
Securities
Law?
But if you think that the $2 trillion figure is already huge, the latest estimates by my research consultancy RGE Monitor suggest that total losses on loans made by US financial firms and the fall in the market value of the assets they hold (things like mortgage-backed securities) will peak at about $3.6 trillion.
Falling interest rates help push up the prices of
securities
– both stocks and bonds – which are disproportionately held by the wealthy.
This results in the “securitization” of the traditional financial assets, and forces German banks to shift their focus from the old-fashioned lending business into
securities
underwriting and trading activities.
By buying government securities, the central bank injects cash into the banking system.
This was and is the result of an asset bubble fueled by excessive leverage and by the massive transparency issues associated with complex
securities
and derivatives that were supposed to spread risk, but instead mainly increased the systemic risk already present with excess debt.
The ECB has lowered the threshold of creditworthiness that Greek government
securities
must meet in order to allow continued Greek borrowing.
This is factually incorrect – US government
securities
remain one of the safest investments in the world – but the claim serves the purpose of dramatizing the federal budget and creating a great deal of hysteria around America’s current debt levels.
Nothing else ultimately explains lenders’ immense willingness, in the boom up to 2006, to lower their credit standards on home mortgages, regulators’ willingness to let them do it, rating agencies’ willingness to rate mortgage
securities
highly, and investors’ willingness to gobble them up.
Indeed, whereas the US Federal Reserve terminated its large-scale
securities
purchases, known as “quantitative easing” (QE), last month, the Bank of Japan and the European Central Bank recently announced the expansion of their monetary-stimulus programs.
It winds up borrowing “temporarily” with short-term debt; then, as borrowing accumulates, it is refinanced with longer-term
securities.
Consider, first, the authorities’ concern about the risks implied by its portfolio of foreign
securities.
China’s existing portfolio of some $3 trillion worth of dollar bonds and other foreign
securities
exposes it to two distinct risks: inflation in the United States and Europe, and a rapid devaluation of the dollar relative to the euro and other currencies.
The only way for China to reduce those risks is to reduce the amount of foreign-currency
securities
that it owns.
During the past 12 months, China had a current-account surplus of nearly $300 billion, which must be added to China’s existing holdings of
securities
denominated in dollars, euros, and other foreign currencies.
In rapid succession, advanced-country central banks also launched quantitative easing (QE), purchasing massive volumes of long-term government
securities
to reduce their yields.
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