Sentences with phrase «excess liquidity»

Because banks usually lever at least 10 - 1, these $ 2.2 trillion in reserves represent a potentially massive amount of excess liquidity.

This helps to support excess liquidity and equity valuations.

However, as excess liquidity dries up and global economic concerns weigh on the minds of investors, the reconciliation between cash flows and valuations has arrived.

In both instances when the change in excess liquidity fell to a low, so did stocks.

So this is an advantage, and the charity enjoys excess liquidity.

Since we've got excess liquidity, the first move we made was to payoff our retirement home's mortgage with the equity we've freed up from our home sale.

FRANKFURT, Oct 9 - Key Euribor bank - to - bank lending rate hit fresh record lows on Tuesday, pushed down by large amounts of excess liquidity sloshing around in money markets.

The exit would be preceded by a gradual decrease in the size of asset purchases (i.e., a slowing in the amount of extra easing), followed by the end of asset purchases, a gradual withdrawal of excess liquidity from the system, measured increases in the federal funds rate and, eventually, a normalization of the Fed's balance sheet.

It seems to me that excess liquidity created by the Fed is going the same way now, because consumers and businesses don't want to borrow to the same degree as they did during the boom phase.

However, if you have maxed out your pre retirement accounts, have a healthy after tax financial nut in investments, and have lots of excess liquidity with a family to protect, whole life is a decent financial diversification.

Particularly telling is Bernanke on page 135 saying the Fed can mop up excess liquidity at the right time, and he is 100 % confident of that.

Invest for the long haul, realizing there will be bumps along the way, and keep enough excess liquidity on hand.

«EM Asian currencies will benefit from global excess liquidity chasing higher returns,» he said.

According to the IMF, «equity prices in Asia and Latin America generally rise when excess liquidity is transferred from the G4 to the emerging economies.»

Plentiful excess liquidity would strengthen risk assets and further depress interest rates (bullish risk - parity)

As the demonetization led excess liquidity situation evaporates and liquidity moves into neutral situation, we expect short term rates of upto 1 year maturity to increase during the year.

Here's my concern — having carry traders absorb excess liquidity that the Fed has put out is a waste of Fed resources, and indicates that Fed policy is too loose.

The result has been that the «resolution» of each of these financial crises created massive amounts of high - grade excess liquidity that was not withdrawn when market order was restored and provided the fuel that would produce the next credit boom and bust.

As a result, Bear Stearns» excess liquidity rapidly eroded,» the statement says....

The company may be in a position to boost shareholder value by using excess liquidity to repurchase shares or pay a one - time cash dividend.

Insufficient liquidity: If the borrower doesn't have a heavy down payment (20 % -30 % for most banks) and strong excess liquidity, banks don't want to take the risk on funding their loan.

FRANKFURT, Oct 8 - Key Euribor bank - to - bank lending rate hit fresh record lows on Monday, pushed down by large amounts of excess liquidity sloshing around in the money markets.

We don't need grotesque yield curve shapes to guide the economy; we do need to limit the amount of excess liquidity in loosening, lest we get asset bubbles.

Second, 0 % interest rates and excess liquidity from Quantitative Easing made it attractive for companies to grow their earnings per share via share buybacks and acquisitions rather than the riskier investment approach.

FRANKFURT, Oct 10 - Key Euribor bank - to - bank lending rates hit fresh record lows on Wednesday, pushed down by large amounts of excess liquidity sloshing around in money markets.

FRANKFURT, Oct 10 (Reuters)- Key Euribor bank - to - bank lending rates hit fresh record lows on Wednesday, pushed down by large amounts of excess liquidity sloshing around in money markets.

FRANKFURT, Oct 9 - Key Euribor bank - to - bank lending rates hit fresh record lows on Tuesday, pushed down by large amounts of excess liquidity sloshing around in money markets.

FRANKFURT, Oct 8 (Reuters)- Key Euribor bank - to - bank lending rate hit fresh record lows on Monday, pushed down by large amounts of excess liquidity sloshing around in the money markets.

so now the issue is whether the bond market (or macro hedge funds) eased too much thinking the Fed would choke off liquidity and now is staring at still a weaker dollar and high commodity prices indicating an elevated level of excess liquidity.

if you track marshallian k, a measure of excess liquidity, it exploded from mid-2000 (when 2s / 10s was inverted) into mid-2003 as the Fed was desperately flooding the sytem with liquidity and devaluing the dollar, trying to stop the japanese style carnage.

During periods of excess liquidity or excess global savings (or, to put it differently, of deficient demand), especially when central banks are accumulating vast hoards of reserves, the excess savings have to end up somewhere, and this ultimately means that excess savings flow into the U.S. financial markets, leaving the United States with a capital account surplus and its obverse, a current account deficit.

Last week I had drinks with one of my former Peking University students and we discussed some of the ways the global economy might react to a world adjusting from a global crisis with weak demand and excess liquidity.

The intention of this letter is to communicate two things to you: (1) given the earnings growth we forecast for Apple, we continue to think that the market misunderstands and dramatically undervalues Apple and (2) the excess liquidity the company continues to hold on its balance sheet affords the company an amazing opportunity to take further advantage of this valuation disconnect by accelerating share repurchases.

The combination of excess liquidity in the banking system, financial deregulation and the country's export «miracle» eventually led to overconfidence and overexuberance in Japan's economy, which became the second largest economy in the world after the USA in just a few decades.

Macroeconomic theory states that when a country's money supply exceeds economic growth, the excess liquidity tends to drive up asset prices, including stocks.

Today, it appears that the change in excess liquidity is just beginning to bounce off another low, as are stocks, indicating another potential inflection point.

Still, until debt defaults force a crisis in the world debt markets, Chapman agrees with the Carlyle Group that excess liquidity will continue to buoy the world stock markets, including the New York Stock Exchange, to new highs.

Excess liquidity, as reflected in the rise of highly leveraged hedge fund accounts, has been widely seen as a major factor in the rise of the stock market in the recovery since 9/11.

WND previously reported concern that the decision of the Federal Reserve to quit publishing a traditional index, «M3,» a broad measure of the money supply, signaled a decision to pump the economy with excess liquidity.

With an unexpected economic stallout in Q1 / 14, and the ongoing forces of excess liquidity, tight margins and heavy competition continuing to labor the market, new money opportunities can be challenging.

Bubbles aren't just about the madness of crowds, nor are they simply manifestations of excess liquidity and leverage — even though both of these factors are present in the extraordinary rise of bitcoin over recent months.

Under our assumptions for TLTRO take - up and ECB's asset purchases running at a EUR80bn monthly rate starting next month, excess liquidity will rise to around EUR1.5 tn by 2017 (from EUR650bn currently), the direct cost of negative rates will rise from EUR2bn to around EUR6bn, but TLTRO II will reduce the negative rate bill by around EUR2bn, to EUR4bn on an annual basis, as shown in Chart 6.

[1] Also, any net demand for TLTRO II that is not rolled over from TLTRO I will increase the level of excess liquidity and thus the aggregate cost of negative rates for depositors, while potentially reducing the amount of other refinancing operations, including ECB's MRO currently standing at EUR63bn.

With booming sukuk issuance and excess liquidity, the region is keeping many investment banks active and profitable, helping Middle Eastern economies to develop and become more integrated.

We believe that excess liquidity and excess cash flow will lead to more dividend increases, more share repurchases and more acquisitions.

A now well - founded principle of economics is that excess liquidity in the money supply can lead to price inflation; monetary policy was expansive during the 1970s, which could explain the rampant inflation at the time.

Because of the excess liquidity, M3 rises, and in response, the foreign central bank tightens monetary policy, but then they undo a large part of it by buying US bonds as a part of their monetary base.