Sentences with phrase «creates arbitrage»

We expect that materially negative yields will be extremely difficult to sustain, not only for political and economic reasons, but also because the cheap alternative of placing physical currency in a safe creates an arbitrage constraint.
«I made a lot in finance and what I recognized was how incredible inefficiencies create arbitrage opportunities.
Brian Kelly, BK Capital Management, discusses volatility in the crypto markets as multiple exchanges create an arbitrage opportunity for some investors.
Liquidity, exchange diversification (to either create arbitrage or to enhance liquidity), roadmap development, legacy market support, buy - out strength, TA, underlying tech (POS, PoW)... to name a few things that correlate to a metric.
These strategies challenge the current dogma and offer guaranteed cash accumulation in an environment that offers ongoing liquidity and the potential to accomplish velocity and create an arbitrage through becoming a private hard money lender.
«Bankers create collateral out of paper, borrow against it, and create an arbitrage opportunity immediately.»
It is a flexible, deep, and liquid market, permitting traders to construct interest rate positions for specific time periods in the future, and to create arbitrage positions against other credit instruments.
The volatile markets can create arbitrage opportunities.
When a policy loan interest rate is less than the cash value crediting rate, the policy owner can create arbitrage.
When the policy owner can create arbitrage in addition to banking for profit with the policy, they have managed to maximize their policy potential.
When a policy loan interest rate is less than the cash value crediting rate, the policy owner can create arbitrage.

Not exact matches

Only when you've done enough testing to figure out how to create a positive arbitrage between how much you pay to acquire the customer and how much revenue the customer is likely to generate should you throw big money at a roll - out.
The absence of proper consumer protection was a major contributing factor to the present financial meltdown, for «it has now become clear that abrogating sound state laws, particularly regarding consumer protection, created opportunity for regulatory arbitrage that resulted in a regulatory «race - to - the - bottom.
What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?
-- Goethe What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?
«The inability of so many investors and managers to invest with a long term horizon creates the opportunity for time arbitrage - an edge in an investing approach that requires the commitment to long - term holding periods» Joel Greenblatt
Remain Patient: As an even larger market contingency focuses on timing investments exactly right to the next quarter, month or even minute, the ability to think long - term creates significant «time - arbitrage» opportunities.
Merger Arbitrage is a hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless profit.
It was about using that extra capacity, and trying to create more than the real estate arbitrage that existed with the serviced offices.
The circumstance actually has created a bit of arbitrage for us and we have been hammering it the last 5 years.
That actually created an interesting arbitrage opportunity, albeit with very low limits.
But large banks, corporations and wealthy individuals use properly structured life insurance contracts to obtain tax benefits, increase yields on cash, reduce borrowing costs and create positive arbitrage on equity loans.
Earning your full interest and dividend, while a loan is outstanding, is an important part of creating a financial arbitrage and capitalizing on the velocity of money, both which are key aspects of the infinite banking concept ®.
This an important advantage when considering permanent life insurance strategies such as the infinite banking concept ®, which is based upon a number of concepts such as the velocity of money and creating financial arbitrage to facilitate other activities such as real estate investing through cash value life insurance.
For example, if you borrow against the equity in your real property at 5 % and re-loan the funds at 10 %, you've just created a 5 % arbitrage.
This creates the opportunity for arbitrage.
However, as mentioned above, your money is still at work in the policy and also in any asset you choose to invest in, creating the potential for positive arbitrage.
Arbitrage creates a natural buying or selling pressure that tends to keep an ETF's share price and NAV from drifting too far from each other.
This creates an opportunity for positive arbitrage on your policy loans.
Adding buybacks to a cheap portfolio creates a form of value arbitrage where you are buying stocks below intrinsic value, something Charlie Munger refers to as «looking for the cannibals».
I assume that volume of all ITT «children» stocks has been temporarily bloated due to arbitrage trading (for example, long pre-spin ITT shares while shorting XLS and XYL to create an equivalent of the post-spin ITT shares, or shorting XLS and ITT - wi to create a pure play XYL share price) but I still think the higher volume of XLS is indicative of share dumping for the reasons outline above.
Dear Roy, Saving avenues for creating an emergency fund can be: FD / RD, Liquid debt fund and / or Arbitrage fund.
The relationship is not always linear but there won't be big differences because that will create an opportunity for price arbitrage.
Arbitrage arguments («rational pricing») apply when the deliverable asset exists in plentiful supply, or may be freely created.
The banker was on the «Receiving» side, and so was the producer, creating an «arbitrage» situation — borrowing money from the banker and passing the interest cost on to Jack the consumer and then keeping the profit.
One of the keys to obtaining financial leverage to pursuing other investments is to create financial arbitrage with your money.
Rationality comes to bond ETFs when sophisticated investors do the arbitrage, and create new ETF units when there is a premium to the NAV, or melt ETF units into their constituent parts when there is a discount to NAV.
If a less specific group of bonds can be delivered to create a new unit, i.e., the bonds must satisfy certain constraints on issuer percentages, issue sizes, duration [interest rate sensitivity], convexity [sensitivity to interest rate sensitivity], sector percentages, option - adjusted spread / yield, etc., then arbitrage can proceed more rapidly, and premiums over NAV should be smaller.
Now that Marriott's acquisition has closed, and they're already letting you link accounts, match elite status, and move points between programs, there are fantastic arbitrage opportunities created.
The conventional wisdom is that ALSPs have cracked the code of the legal market: they've seen how the traditional law firm's archaic approach to producing and delivering legal work creates gaping market inefficiencies begging to be exploited, and they've figured out how process improvement, technological investment, labour arbitrage, and system overhauls can enable that exploitation.
Non-direct recognition loans allow you to maintain financial leverage AND create a financial arbitrage with your cash because the loan rates for policies are historically low variable rates (or fixed in some cases).
However, as mentioned above, your money is still at work in the policy and also in any asset you choose to invest in, creating the potential for positive arbitrage.
A positive arbitrage will create a hedge against interest rate volatility.
This an important advantage when considering permanent life insurance strategies such as the infinite banking concept ®, which is based upon a number of concepts such as the velocity of money and creating financial arbitrage to facilitate other activities such as real estate investing through cash value life insurance.
The Budget has created a tax arbitrage between unit linked insurance policies (ULIP) and mutual funds as mutual fund investors have to pay 10 per cent tax on long - term capital gains, whereas ULIP investors do not.
It was trading at $ 100 premium on Indian exchanges creating huge arbitrage opportunities.
The team will also create the automated arbitrage and automated lending bots and a mobile app in 2018.
«Now I've got 200 basis points of arbitrage, to create a much higher yield for myself and my investors,» Board says.
Personally, I would put it into a high cash value life insurance policy and enjoy the simple arbitrage spread I've created.
Create a nice simple interest rate arbitrage and watch the equity in your home actually start contributing to your retirement.
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