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Securities in sentence

720 examples of Securities in a sentence

The Chinese acknowledge that they enabled Americans to borrow and spend beyond their means by parking China’s massive foreign reserves in US government securities.
But if Obama presses Hu to revalue the Chinese currency as the best way to achieve recalibration, Hu is likely to push back, asking Obama what he intends to do to stem the massive US deficits that will cause inflation and reduce the value of investments by Chinese and others in American securities.
The money came largely from selling mortgage-backed securities and collateralized debt obligations, claims against claims against American homeowners (or to be precise, only against the homes themselves, as the owners were protected by the non-recourse nature of loans).
The market for such securities has now vanished.
The US is considering the possibility of imposing a bequest tax on foreign holdings of US securities, and many people believe that it will try to play “the Italian card”: inflating away its public debt and devaluing the currency in order to maintain international competitiveness.
Against this background, major changes in Fed policy – such as the decision to purchase trillions of dollars’ worth of securities or push interest rates to zero – could easily be subjected to legislative approval (except in times of emergency).
Moreover, “innovation” in financial markets has made it possible for securities owners to be insured, meaning that they have a seat at the table, but no “skin in the game.”
When Inflation Doves CryPITTSBURGH – The Wall Street Journal recently ran a front-page article reporting that the monetary-policy “doves,” who had forecast low inflation in the United States, have gotten the better of the “hawks,” who argued that the Fed’s monthly purchases of long-term securities, or so-called quantitative easing (QE), would unleash faster price growth.
Modern economies have free markets, along with business analysts with their recommendations, ratings agencies with their classifications of securities, and accountants with their balance sheets and income statements.
Again, such concerns would have been better addressed in different ways – in particular, by providing institutions that needed capital with funds directly, and in return for securities.
To address a potential capital shortage at Goldman Sachs, say, taxpayers would have been better off providing $13 billon to Goldman in exchange for Goldman securities with adequate value, rather than footing the bill for the $13 billion that AIG gave to Goldman.
These policies, by design, lowered the return on sovereign bonds, forcing investors to seek yield in markets for higher-risk assets like equities, lower-rated bonds, and foreign securities.
Thus, the emerging emphasis on recapitalizing the banking system and more recently, on unorthodox policies, including the purchase of private sector credit securities is correct.
The yields and volatility of longer-term bonds should then fall relative to short-term securities, allowing peripheral governments to finance themselves reliably and at reasonable cost.
To avert a repetition, securities held by banks must carry a much higher risk rating than they currently do.
Securities based on those contracts ended up, in part, in the hands of financial institutions.
But the adequate servicing of the debt and, therefore, the performance of the securities, were based on expectations of continued rises in housing prices that proved to be unrealistic.
When housing prices fell, so did the value of the mortgages and the securities based upon them.
Because financial institutions held much of these securities, their market values declined as well, leaving balance sheets in need of restructuring, particularly given their highly leveraged capital structures.
During the political horse-trading that preceded the creation of the EBA (together with two equivalent bodies for securities and insurance), it was agreed that the new authority would be based in London.
Fully two-thirds of that total – around $2 trillion – is invested in dollar-based assets, largely US Treasuries and agency securities (i.e., Fannie Mae and Freddie Mac).
Less than four years later, US President Franklin D. Roosevelt’s newly elected government passed the Glass-Steagall Act, which prohibited commercial banks from trading securities with clients’ deposits.
The financial sector has since made every effort to design instruments that protect against price fluctuations, to transform private debt into tradable financial securities, and to gain access to speculative markets.
The Fed has explained that it will sell the large volume of mortgage securities that it now holds on its balance sheet, absorbing liquidity in the process.
America absorbs Chinese imports, pays China in dollars, and China holds dollars, amassing $2.5 trillion in foreign-exchange reserves, much of it held in US Treasury securities.
What US authorities should do is strengthen protections for the overnight money market for US Treasuries, which aren’t subject to panics and bubbles, while rolling back most of the legal advantages enjoyed by short-term, overnight financing of mortgage-backed securities.
According to a directive issued in 1989, “An insider is one who, due to his relationship to the company as manager, director, employee, or major shareholder, possesses inside information (material non-public facts) and knowingly uses such inside information to acquire or dispose of securities to which the information relates for his own account or another.”
In modern capital markets – where trading is carried out anonymously over great distances – personal trust has been replaced by surrogates: best practices, securities laws, and regulations.
In its simplest form, the securities could be shares in GDP.
If fiscal laxity tarnishes the safe-haven status of Treasury securities, and the monetary authority is perceived to be slow in removing policy accommodation, Fed Chair Jerome Powell and his colleagues may get more of the inflation they are hoping for.
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