At present, the positively sloped yield curve is allowing some banks to repair
by borrowing short and lending long.
Depository institutions make money
by borrowing short and lending long; they collect the spread in between.
Furthermore, when the curve is flat or inverted, banks can not make money
by borrowing short and lending long.
Not exact matches
They make money
by selling the more expensive asset
short and buying the cheaper one, sometimes delivering it in place of the
borrowed asset they need to replace.
In a
short time, the Central State has
borrowed sums so staggering that it has no choice but to either inflate the debt away, thereby destroying the savings and income of its remaining productive citizenry, or
by taxing these same productive citizens to the point of penury.
Short - sellers aim to profit
by selling
borrowed shares in the hope of buying them back later at a lower price.
For example, treasuries often use the BAX contract to hedge their
short term
borrowings by selling the contract to effectively lock - in a favourable rate in case rates should increase in the future.
Achievement of these goals was considered
by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration of the on - going flat / inverted yield curve (meaning
short - term interest rates that are virtually equal to or exceed long - term interest rates, thus lowering profit margins for financial services companies that
borrow cash at
short - term rates and lend at long - term rates), potentially higher credit losses, fewer available high - quality, high - yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.
Some analysts said the sharp swings in offshore exchange rates and
borrowing costs appeared to be engineered
by the Chinese leadership, as a way to ease depreciation pressure on the renminbi and to discourage speculation — namely
short - sellers, investors who bet on declines in the currency, often
by using
borrowed funds.
Short - sellers were placing bets on Tuesday that Snap would continue to fall, representing about 2.4 percent of trading volume in the stock
by midday despite it being one of the most expensive to
borrow on Wall Street.
The Fed has a dual mandate to maximize employment and stabilize inflation, which it tries to achieve primarily
by pushing up or down the federal funds rate, the benchmark
short - term financing cost for banks that influences a wide range of
borrowing rates for households and businesses.
Even if their
shorts need to be covered in a
short time frame, they can extend that time frame
by borrowing stock owned
by their clients.
They measure data on
shorting demand and utilization (shares
borrowed divided
by shares available for lending) using data from Markit.
Finally,
by flattening the yield curve, the Fed's purchases have harmed commercial banks, the profits of which come mainly from
borrowing short, lending long, and pocketing the difference.
Over the past couple of years, speculators have also used
short sales of gold to obtain low cost funds to invest in other assets — for example,
by shorting gold (
borrowing it and selling it in the spot market), market participants have been able to obtain US dollars at between 1 and 2 per cent, well below the rate of return available on US assets.
Short sellers profit when the price of a stock (or another asset) falls; they accomplish this
by borrowing shares, selling them, and buying them back later to return to the original owner.
In plain English, the optimal portfolio recommended
by the efficient frontier model recommended
borrowing shares in two funds and buying them back if the price decline, a very risky investment strategy (
short selling).
Selling gold
short has therefore been an alternative to the «yen - carry» trade which saw market participants fund investments in various markets
by borrowing yen (at almost zero cost due to the low interest rates in Japan) and selling it for other currencies, mostly US dollars.
The RRP is used
by the Fed to
borrow reserves and money for
short periods, with securities (bonds, notes or bills) from the Fed's stash being used as collateral for these
borrowings.
With the FED being the dominant borrower (willing to
borrow at higher rates), banks, GSEs and money market funds have less desire to provide
short - term funding for other entities, thus forcing them to
borrow at the rate set
by the FED.
A payday loan is a small
short - term loan used
by people who urgently need to
borrow money until their next payday.
On the Left, Ed Balls and other neo-Keynesians like David Blanchflower argue that
short - term extra
borrowing will stimulate growth, which in turn will help bring down the deficit
by having more tax receipts due to the consequent drop in unemployment (currently above 2.7 million).
As anticipated, the Conservatives began the «
short» campaign with attacks on Miliband's leadership and Labour
borrowing, but Miliband's team were buoyed
by the Tories» failure to gain traction.
The agreement was requested
by the underwriter, Oppenheimer & Co., according to the town's
borrowing prospectus for
short - term notes, which are expected to begin being sold to investors Tuesday.
The mid year financial report released
by Cuomo's budget office says options to close the gap include more cuts to state agencies, delaying payments to local governments and schools, suspension of some construction projects, and even
borrowing money
short term to pay for operating expenses.
Mr. Paterson, meeting publicly in Albany with leaders of the Legislature, also said he would not sign any budget that relied on
borrowed money to close New York's $ 9 billion budget gap, a decision that would essentially kill a proposal crafted
by his own lieutenant governor, Richard Ravitch, to use
short - term
borrowing to offset some cuts to government programs.
The monitoring system created
by state Comptroller Thomas P. DiNapoli uses financial indicators that include year - end fund balance,
short - term
borrowing and patterns of operating deficits.
In Long Beach, the chief operating officer, Michael DeVito, said his district's financial ratings have been adversely affected
by the need to do
short - term
borrowing to repair damage from superstorm Sandy, and that such
borrowing has now ended.
Equipment was in
short supply, and whenever a person went on vacation, their drawers and cabinets had to be padlocked in order to keep the equipment from being «
borrowed»
by others in the lab.
Johnson's team
borrowed a technique from cancer biology, called the systematic evolution of ligands
by exponential enrichment (SELEX), which creates a huge library of random,
short chains of nucleotides, called aptamers, and then incubates them with a target of choice, such a specific breast cancer cell.
-LCB- my dress is
by wayf from anthropologie and Stef let me
borrow it for the shoot — it's last years, so it's not currently out, but I linked some at the bottom of this page of a couple lookalikes / / my shoes are old navy / / wes is wearing TBBC polo,
shorts, shoes are $ 13 from an amazon brand called CIOR and the only ones he wants to wear these days — they come in other colors too / / Tucks shoes are footmates, TBBC shirt, pants, bowtie & his belt I scooped up on shop bagsy (you can still use SARAHTUCKER for 15 % off)-RCB-
On me: J.Crew merino wool sweater
borrowed from Gray Monster, J.Crew Ruffle Chino
Shorts from J.Crew Factory, Long Cuffable, Scrunchable Socks from Sock Dreams, Booties
by Clarks, Makr Backpack, Ergo baby carrier
I look for sales, I
borrow shamelessly from friends who are willing to lend, and I make the most of basic pieces, like a pair of linen
shorts or dark skinny jeans,
by wearing them a lot.
/ Vince White Silk Tee / Jade Earrings
by Devta Doolan (
borrowed - call Szor Collections at 214-691-5400) / Seven for All Mankind Denim
Shorts (old / similar here) / Louis Vuitton Bag / Zara Heels (similar here) / Catbird Rings / Bony Levy Initial «A» Necklace / Cosabella Bralette
That phrase isn't mine — it's the title of an exceptional
short story collection
by Maile Meloy and a line from an A.R. Ammons poem — but I've
borrowed it because it expresses exactly...
In
short, The Three Musketeers is a patchwork of
borrowed elements (I caught myself smiling at a reference to 1939's beloved Mickey / Pluto starrer The Pointer); as a result, it never transcends pastiche, never threatens to supplant oral tradition as the classic «Mickey and the Beanstalk» segment from Disney's lopsided 1947 portmanteau Fun and Fancy Free (to which The Three Musketeers pays homage
by introducing our heroic trio in a state of destitution) and 1983's sensational Mickey's Christmas Carol have more or less succeeded in doing.
«My husband and I
borrowed your book from the library and were so impressed
by the content we decided to self - publish his collection of
short stories.»
In
short, an author was paid
by the qualified
borrow.
I just posted a
short comment with similar numbers (including some extrapolations on pages /
borrow read) on the thread at Kboards, which will probably get shredded
by all the Chicken Littles over there
A
short sale is the sale of a stock that an investor does not own or a sale which is consummated
by the delivery of a stock
borrowed by, or for the account of, the investor.
Short sales are normally settled
by the delivery of a security
borrowed by or on behalf of the investor.
It's definitely not advisable to take an unhedged
short position, either
by borrowing someone else's share (s) to sell or selling an option (when you sell the option you take the risk), because of the unlimited loss potential described above.
The
short seller achieves this
by borrowing the stock from a broker, and immediately selling the stock at its current market price, with the sale proceeds credited to the
short seller's margin account.
In February, the G20 called for a coordinated stimulus program to be implemented
by the world's major economies — or at least the ones that can afford it — that would see countries
borrow to spend on infrastructure like subway lines and power - generating stations, assets that will provide a
short - term economic boost while laying the foundation for longer - term growth.
Secondly, if the collateral drops in value
by too much, the investor
borrowing the shares may be forced to add additional collateral or cover the
short early.
While equity REITs are backed
by real property and thus have built - in inflation protection (not to mention growth potential), mortgage REITs are essentially single - strategy «hedge funds» that
borrow short - term funds cheaply and invest the proceeds in longer - duration mortgages.
This means the government is financing itself at close to zero cost for its
short term
borrowing and, further out on the curve, the cost of financing does not go up
by much; as the yield - to - worst on the S&P / BGCantor 7 - 10 Year U.S. Treasury Bond Index is now at 1.48 %.
Typically you're expecting the stock to decline in value so you can make a profit
by using shares bought later at a lower price to meet your obligation to restore the shares you
borrowed when you made the
short sale.
Buy that same home with a 15 - year loan at today's 2.86 % (the
shorter time you
borrow the money, the lower the rate), and your monthly payments balloon to $ 1,710 — but you'll pay only $ 43,306 in interest
by the time you're done.
But you might forgo long - term gains in your retirement account
by borrowing the money for a
short - term problem.