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Securities in sentence

720 examples of Securities in a sentence

When home prices stop rising, recent homebuyers may lose the enthusiasm to continue paying their mortgages – and investors lose faith in mortgage-backed securities.
By offering to lend freely against collateral, they “liquify” assets and prevent banks from being forced to unload loans or securities at fire-sale prices.
For example, the US Federal Reserve’s first round of so-called quantitative easing (QE1), implemented in the midst of the crisis, was doubly effective: By purchasing mortgage-backed securities, the Fed brought down interest rates in that important market (in part, probably, by signaling its confidence in those securities), and restored it to vitality.
Indeed, with its recent decision to pursue QE3, the Fed is focusing once again on the mortgage-backed securities market; but, given that the market is much healthier now, it is unclear how much good this will do.
In theory, as the economy picks up and interest rates begin to climb, central banks will simply pay higher interest rates on their reserves, so that they can finance their holdings of long-term securities and shrink them slowly.
In fact, developments or fashions in other academic disciplines and also in the general culture contributed at least as much to a willingness to engage in absurd risks and to provide and accept valuations of complex and inherently unfathomable securities.
Given massive global corporate debt and a soaring US stock market – the cyclically adjusted price-to-earnings ratio is high by historical standards – one possible trigger for a downturn in the coming years is a negative shock that could send securities tumbling.
In contrast to today’s situation, the bad assets were usually entire companies, not complex securities.
This thesis is now gaining much broader traction – major newspapers now report a broadening criminal probe by the federal government – and by New York’s state attorney general – into the US financial sector’s residential lending and related securities practices.
The US Federal Reserve, which pioneered the post-crisis experiments with zero interest rates and QE, began to reduce its purchases of long-term securities at the beginning of 2014, stopped QE completely later that year, and started raising interest rates in 2015 – all without producing the “cold turkey” effects predicted by skeptics.
Fed purchases of government securities have tempered market-based discipline of federal spending.
The more substantial argument against quantitative easing is that purchases of securities would be ineffectual, given Europe’s bank-based financial system.
Evidence from the recent crisis suggests that ultra-low rates prompted a wide range of portfolio adjustments, whereby Asian and Middle East central banks and funds ended up holding the safest low-interest securities, while the US and European financial sectors went on a risk-taking binge.
And then there are the numbers that sound very large and are hard to interpret: $300 trillion in “derivative” securities; $3 trillion managed by 12,000 global “hedge funds”; $1.2 trillion a year in “private equity.”
They are major holders of fixed-interest securities, and their investment income has fallen sharply.
Indeed, the surprising actions taken by Singapore and Switzerland were a direct response to this divergence, as was Denmark's decision to halt all sales of government securities, in order to push interest rates lower and counter upward pressure on the krone.
The three new EU supervisory authorities for banks, insurance and securities markets will coordinate the existing system of national supervisors.
The VIX has now adjusted to more normal levels, but securities prices probably still have a substantial distance to fall.
The term “shadow banking” gained prominence during the subprime mortgage crisis in the United States to account for non-bank assets in the capital market, such as money-market funds, asset-backed securities, and leveraged derivative products, usually funded by investment banks and large institutional investors.
Moreover, it pointed out, it was merely following the example of other major central banks, including the Bank of England, the Bank of Japan, and especially the US Federal Reserve, whose program of quantitative easing (QE) entailed the purchase of more than $2 trillion worth of long-term securities from 2008 to 2012.
But securities regulators also need to start thinking along the same lines – and this is where Kara Stein wants them to go.
For example, short-term funding markets involve the supposedly safe business of borrowing against the collateral of tradable securities, which is a mainstay of how broker-dealers finance themselves.
Moreover, the mechanisms by which the US Federal Reserve’s purchases of asset-backed securities stimulate consumer spending – low mortgage rates, widely available home refinancing, high housing prices, and home-equity withdrawal – function differently in the eurozone.
Rather, bonds should be at least partly converted into equity capital, and any infusion of new capital by the government should be in exchange for securities that are senior to those of existing bondholders.
But, because the Kremlin does not trust its own stocks and bonds, the Stabilization Fund invests in Western securities.
But leading banks are also accused of illegal behavior – inducing people to borrow, for example, by deceiving them about the interest rate that would actually be paid, while misrepresenting the resulting mortgage-backed securities to investors.
Realistically assessed, the full downside legal risks to financial institutions are in excess of $1 trillion – particularly if it can be demonstrated that the “mortgage-backed securities” sold to investors were not backed by mortgages at all, because the proper legal paperwork was never done.
Globally, debt securities issued by non-financial corporations – which are supposed to undertake fixed investments – increased significantly during the same period.
During Japan’s “lost decade,” the Bank of Japan mostly bought Japanese government bonds, whereas the Fed is trying to reopen secondary markets for securitized private lending (which in the US is as important as bank lending), buying mortgage-backed securities and consumer and business loans, as well as U.S. Treasury bonds.
It would not be a surprise if the US Securities and Exchange Commission determined that a great deal of recent money-raising activity (known as Initial Coin Offerings) in this industry actually amounts to the issuance of securities, which would trigger the application of various rules and requirements.
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