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Securities in sentence

720 examples of Securities in a sentence

A year ago, it vowed to stop accepting BBB- rated government securities as collateral for its monetary operations.
The entire credit system in the US – and in much of the rest of the world – is based on the notion that there are “risk-free assets,” namely US government securities.
CAMBRIDGE – Between 1913 (when the United States Federal Reserve was founded) and the latter part of the 1980s, it would be fair to say that the Fed was the only game in town when it came to purchases of US Treasury securities by central banks.
During that era, the Fed owned anywhere between 12% and 30% of US marketable Treasury securities outstanding (see figure), with the post-World War II peak coming as the Fed tried to prop up the sagging US economy following the first spike in oil prices in 1973.
Providing further fiscal stimulus to boost economic growth would carry its own risks, owing to the debt ceiling and another, more ominous factor: America is already overly indebted, and there are signs that major holders of US government securities are finally tired of being repaid in depreciated currency.
The counter-argument – that any sell-off or failure by China to continue to buy US government securities would hurt China as much as America – is not valid.
The Fed’s Surprise and Yellen’s ChallengeNEWPORT BEACH – The US Federal Reserve sparked a global – and now month-long – guessing game with its decision on September 18 not to “taper” its monthly purchases of long-term securities.
Under QE, the Federal Reserve buys – and announces that it will buy – assets; the only difference is that these assets are longer-maturity US government debt instruments and mortgage-backed securities of various kinds, all denominated in US dollars.
On the contrary, by discouraging trading in securities, it would encourage investors to shift their funds into bank accounts and certificates of deposit.
Meanwhile, the US Federal Reserve is now buying more than 90% of newly issued US Treasury securities.
Under these circumstances, and with inflation subdued and interest rates on US Treasury securities far below their historical average in both nominal and real terms, the economic case for temporary fiscal measures to boost demand is compelling.
As a result of the financial crisis, more risk-averse investors at home and abroad have increased their demand for US Treasury securities.
For three years, repeated warnings that such an attack is imminent have flown in the face of the evidence: US Treasury securities remain a safe-haven asset for global investors, including risk-sensitive foreign central banks.
It seems clear that tapering the Fed’s monthly purchases of long-term securities later this year would cause a realignment of asset values in financial markets.
Finally, Asian and Middle Eastern central banks or sovereign wealth funds could take advantage of the ECB's bond-purchase program to sell increasing proportions of their German, French, or Italian debt and reinvest the proceeds in higher-yielding US Treasury securities.
In order to ensure that mortgage securitizers have some “skin in the game,” they are required to retain an interest in 5% of the mortgage securities that they create (unless they qualify for an exemption).
This was accompanied by credit easing (CE), which took the form of central-bank purchases of private or semi-private assets – such as mortgage- and other asset-backed securities, covered bonds, corporate bonds, real-estate trust funds, and even equities via exchange-traded funds.
For example, committing to maintain zero policy rates for, say, three years implies that interest rates on securities with up to a three-year maturity should also fall to zero, given that medium-term interest rates are based on expectations concerning short-term rates over the next three years.
These policies did indeed reduce long- and medium-term interest rates on government securities and mortgage bonds.
When Interest Rates RiseCAMBRIDGE – Long-term interest rates are now unsustainably low, implying bubbles in the prices of bonds and other securities.
When interest rates rise, as they surely will, the bubbles will burst, the prices of those securities will fall, and anyone holding them will be hurt.
The Fed is buying Treasury bonds and long-term mortgage-backed securities at a rate of $85 billion a month, equivalent to an annual rate of $1,020 billion.
My latest estimates are $3.6 trillion in losses for loans and securities issued by US institutions, and $1 trillion for the rest of the world.
Credit Default Swaps on TrialCHICAGO – The lawsuit filed by the US Securities and Exchange Commission against Goldman Sachs for securities fraud, charging the bank with misrepresenting the way a collateralized debt obligations (CDO) had been formed, has revived public disgust at credit default swaps (CDS), the instrument used to bet against these CDOs.
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.
As yields on Treasury securities fall, other spreads widen relative to them.
In practice, helicopter money can look a lot like quantitative easing – purchases by central banks of government securities on secondary markets to inject liquidity into the banking system.
Rather, they were the gross flows of finance from the US to Europe that allowed European banks to leverage their balance sheets, and the large, matching flows of money from European banks into toxic US subprime-linked securities.
Mortgage-backed securities were urged onto investors for whom they were too risky.
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