Previously, Fed Vice-Chair Stanley Fischer laid out the framework which the Fed uses to asses financial stability conditions, highlighting four factors: (1) financial sector leverage, (2) non-financial sector borrowing, (3) liquidity and maturity transformation and (4)
asset valuation pressures.
Not exact matches
And recessions are often presaged by certain signals: rising jobless claims; falling home sales; an inverted yield curve; wage
pressures that impact corporate margins; exogenous shocks, including oil spikes; or destabilizing
valuations in key
asset classes.
«At a time when cyclical
pressures are building and
asset valuations are stretched, we should be calling for large banking organizations to safeguard the capital and liquidity buffers
This would alleviate
pressure on emerging market
assets at a time when their
valuations have become more attractive on both a relative and absolute basis.
Our emphasis has been on the risk posed to
asset prices by relatively demanding
valuations in many
asset classes and the risks posed by rising inflation
pressure and the implications of this for medium - term central bank accommodation.
Reciprocally, if the manager's performance in recent years has been disappointing, and the manager now holds
assets with record - low
valuations, this manager is a buy — unless the manager has responded to client or investment committee
pressure and has abandoned the newly cheap
assets, or the manager has been fired and replaced, with a new manager, less likely to stay the course with the newly cheap
assets.
Companies in carbon - heavy industries such as energy and mining face the highest
pressure, as investors fear being stuck holding stranded
assets: companies who fail to plan for the future and whose
valuations will likely plummet as a result.
I have helped couples settle all issues such as identification, characterization,
valuation and division of all
assets and debts, parenting plans and assuring physical needs of children — away from courthouse
pressure.