Sentences with phrase «by borrowing short»

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.
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