Spreads
in sentence
391 examples of Spreads in a sentence
That way, limited interest-rate
spreads
could do the work of its missing exchange-rate mechanism.
Ban the Common BondFRANKFURT – With the deepening of the global financial crisis,
spreads
between the government bonds of different European Monetary Union (EMU) countries for a while widened dramatically.
Relative to German bonds, the
spreads
in February of secondary-market yields of government bonds with maturities of close to ten years were 141 basis points for Italy, 257 for Greece, and 252 for Ireland, compared to just 32, 84, and 25 basis points, respectively, in 2000.
It comes as no surprise, then, that the idea of a common European bond is becoming popular as a way to counter the risk of rising EMU interest-rate
spreads.
To see why, recall that the immediate trigger for rising interest-rate
spreads
was financial markets’ growing concerns about the solidity of some euro-zone countries, owing to dramatic deterioration in their current and expected fiscal positions.
The Union must see to it that this border is not a new wall dividing Europe, and that the zone of stability and prosperity it has created for its members
spreads
to the EU's eastern neighbors as well.
But beneath the surface calm of lower
spreads
and lower tail risks, the eurozone’s fundamental problems remain unresolved.
Short- and long-term interest-rate
spreads
are determined by the economy’s creditworthiness, and whoever wants low interest rates has to provide real collateral.
This model, contemplated by the European Economic Advisory Group at CESifo, would retain the disciplinary effects of interest-rate
spreads
while capping them in order to limit panicked extremes in the capital markets.
Thus, investors’ initial euphoria over the German court’s decision may prove to be short-lived, giving way to rising interest-rate
spreads.
Europe has so far stuck to the mutualization model, in which individual states’ debts are underwritten by a common central bank or fiscal bailout system, ensuring security for investors and largely eliminating interest-rate
spreads
among countries, regardless of their level of indebtedness.
So the speculative attacks were stopped, at least temporarily (though interest-rate
spreads
in Spain and elsewhere have begun to creep up again).
As a study from the Massachusetts Institute of Technology recently found, fake news
spreads
online faster than real news – often significantly so.
As the power of the Internet
spreads
through social and political networking sites, and as virtual democracy grows, this bottom-up influence is likely to grow.
And, though wrong or false information
spreads
just as quickly as true information, corrections are often swift as well.
Once the first two elements of the plan are in place, there should be little need for the third – bond purchases by the ECB in the secondary market in order to narrow interest-rate
spreads
and provide further confidence.
With interest-rate
spreads
having compressed sharply, and with the threat of a meltdown averted, both domestic and foreign investors continue to return to peripheral economies, thereby alleviating severe credit rationing.
As algorithmic decision-making
spreads
to a wider range of policymaking areas, it is shedding a harsh light on the social biases that once lurked in the shadows of the data we collect.
Relative to the recent past, the cost of capital will increase, debt will be more expensive and less ubiquitous, and risk
spreads
will not return to pre-crisis compressed levels.
Weaker growth, lower inflation (owing to a further decline in oil prices), and tighter financial conditions (via a stronger dollar, a corrected stock market, and wider credit spreads) now threaten US growth and inflation expectations.
Fifth, the decline in oil prices is triggering falls in US and global equities and spikes in credit
spreads.
But the fact is that there has been little change in interest rates or risk
spreads
since the bond purchases started.
The current refugee crisis could be the seed from which such a European ethos grows and
spreads.
Mali may be stable for now, but, with the separatist Tuareg rebels in country’s north having just suspended their participation in peace talks, many experts believe that it is only a matter of time before the conflict there reignites and
spreads.
Sovereign interest-rate
spreads
have been well-behaved, the euro has strengthened, and equity markets have risen robustly.
Following the initial increase in risk
spreads
after the US election, financing has become more expensive.
After all, by capping spreads, the buyback facility would limit the downside risk while providing incentives to hold the bonds and wait for the upside – a good reason, perhaps, to make the facility a temporary offer.
By contrast, if the threshold is set low enough to bring
spreads
down from panic levels, purchases will be more substantive, but at the expense of reducing considerably the effective haircut on private holders.
So when the infection
spreads
is critical.
Shorter- and longer-term bond yields in core and periphery countries – and
spreads
in the periphery – may decline further, lowering the cost of capital for the public and private sectors.
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