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Securities in sentence

720 examples of Securities in a sentence

If, instead of investing in the Standard & Poor index of 500 largest companies quoted on Wall Street, an investor put his savings in small, and often more innovative, companies (the so-called "small caps"), his return would have gone up in the last 50 years by 6% – i.e. by a mere15% over the return on ultra-safe government securities.
But the risks that investor faced would also have doubled, for the volatility of returns on short-term government securities was 3% during the same 50 years, but a whopping 17% for the S&P index, and 30% for small cap stocks.
This 30% figure means that, in any one year, the probability that the return on one's investment was going to be 30% higher than the return on government securities was equal to the probability that it would be 30% lower.
In other words, long-term investments in stocks do yield more than investments in government securities, but the heightened volatility means that decades must pass before we can safely conclude that an average stock investment has indeed brought higher returns.
Yet, during that period, the differential in returns between stocks and treasury securities was on the order of 6%.
And the crisis was quite clearly tied to the explosion in risky mortgage-backed securities in the US; when the market abruptly realized that these securities could not be paid off in full, many systemically important financial firms were seen to be much weaker than they had seemed.
Destabilized by too much short-term debt and too much exposure to risky, overvalued, low-quality mortgage-backed securities, they tripped and fell over it.
But then, in the run-up to the crisis, they miscalculated, taking on too much short-term debt and over-investing in risky securities.
Since then, emerging-market currencies and fixed-income securities (government and corporate bonds) have taken a hit.
On September 13, the United States Federal Reserve announced that in the coming months it would purchase some $85 billion of long-term securities per month, with the aim of putting downward pressure on long-term interest rates and supporting growth.
Then came the “taper tantrum” in the spring of 2013, when US long-term interest rates shot up by 100 basis points after then-Fed Chairman Ben Bernanke hinted at an end to the Fed’s monthly purchases of long-term securities.
The public already is being misused in an effort to mop up junk securities and support feeble banks, with taxpayer-funded institutions such as the ECB and the bailout programs having by now provided €1.2 trillion ($1.6 trillion) in international credit.
For example, we need stronger consumer protection for retail financial products, stricter disclosure requirements for new securities, and better-designed vehicles for hedging risks.
For several years until then, home prices in the United States rose dramatically, fueled by massive borrowing by homebuyers and banks’ investments in mortgages and mortgage-backed securities.
Of the roughly $200 trillion in global financial assets today, almost three-quarters are in some kind of debt instrument, including bank loans, corporate bonds, and government securities.
As more of China’s oil imports come to be priced in its domestic currency, foreign suppliers will have more renminbi-denominated accounts with which they can purchase not only Chinese goods and services, but also Chinese government securities and bonds.
The main problem is that the flow of foreign credit has been impaired because US mortgage-backed securities and the derivatives based on them have become nearly unsellable everywhere.
For the moment, global investors cannot get enough of US treasury bills, as collapsing interest rates for short-term US securities demonstrates.
During the past year, the Fed has further increased the liquidity of the banking system – and of the American economy – by a strategy called Operation Twist, buying $400 billion of long-term securities in exchange for short-term Treasury bills.
The massive substitution of reserves for longer-term securities during the period of “quantitative easing,” and of Treasury bills for long-term securities in Operation Twist, has succeeded in reducing long-term interest rates.
The combination of low interest rates at every maturity and the substitution of short-term securities for longer-term assets has also succeeded in raising share prices.
The financial crisis erupted in 2008 when mortgage-backed securities were revalued at much less than what they had been thought to be worth.
The problem was not that these securities were ferociously traded (most were not, and thus were not the kind of security that a Tobin tax would hit hard), but rather that everyone in financial markets revalued them at the same time.
That left the financial institutions that held mortgage-backed securities in much weaker condition, and several failed.
Part of the reason for Swensen’s success is “absolute return,” a term – now widely quoted in the investment community – that he coined for unusual investment strategies involving such things as merger arbitrage and distressed securities.
In these senses, Swensen is completely different from day traders, who are both investing for the short term and trying to beat the most crowded market – the market for exchange-listed securities.
Moreover, the volume of corporate debt securities almost tripled after the introduction of the Euro eliminated exchange-rate risk.
Were Moody’s to follow S&P in stripping the US of its triple-A rating, the most likely outcome is that the universe of global investors who are both able and willing to increase their holdings of US government securities would shrink over time.
Moreover, most markets for services - securities trading, wholesale and retail distribution, business services, and local utilities - remain sheltered from competition and free circulation rules.
In the US, the penalties have been dominated by fines for sales of misleadingly marketed mortgage-backed securities, often to the two government supported entities Fannie Mae and Freddie Mac.
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