Not exact matches
Boockvar said that if China were to take such a daring step, it could ruin its chances of being accepted
into the International Monetary Fund's basket of special drawing rights currencies — IMF - issued
reserve assets — in October 2016.
Falling prices, in contrast, cause supply to be shut in and turn what were once considered proven
reserves into stranded
assets that remain in the ground.
Consider here what motivated the banks in the first place: a great amount of their
assets turned out to be worthless (the famous «toxic»
assets) when the bust hit in 2008, and they found it difficult to maintain minimum capital ratios; their deposit liabilities of course remained the same, and initially the level of non-borrowed bank
reserves went deeply
into negative territory (this is to say, they were forced to borrow directly from the Fed's discount window during this time).
The past several years have featured little more than a gigantic
asset swap, the short description being that massive volumes of government debt have been swapped by central banks for massive volumes of idle bank
reserves, while massive volumes of low - yielding, covenant - lite debt have been issued
into the hands of yield - seeking investors, in order to retire massive volumes of corporate equities at elevated valuations through buybacks.
New York State Attorney General Eric Schneiderman said his investigation is an inquiry
into whether Exxon is overstating the value of its
assets and oil
reserves and understating the risks of using fossil fuels.
Moreover, people clearly believe that the additional
reserves are flowing wildly
into risk
assets, pushing prices higher as if secondary markets are some sort of balloon to be filled (one second of reflection will establish that every dollar that goes «
into» a secondary market in the hands of a buyer comes back «out» of the secondary market in the hands of a seller).
However, I would note the more recent revival of mercantilism & a new willingness of many countries to diversify
into real
assets (rather than currencies / bonds)-- this could pose a new and more substantial / elevated risk of decline for the dollar as a
reserve currency (vs. the historical example of sterling).
Excess spread may be paid
into a
reserve account and used as a partial credit enhancement or it may be released to the seller or the originator of the
assets.
The Chrysler Building is taken
into account in certain ratios in the CFI but excluded from others since those
assets, which are tied up, wouldn't enable Cooper Union to weather a storm the way an endowment or cash
reserve would.
The analysis finds that expanding fossil fuel
reserves does even more damage than putting the global climate in danger; exploration financing by the World Bank risks locking developing countries
into loan commitments for resources that will likely become stranded
assets if policies are implemented to meet agreed climate goals.
Among them, about $ 3 trillion in global investments — including enormous funds like the California state pension fund — could find themselves busted by «stranded
assets,» as the fuel
reserves that energy companies calculate
into their net worth would need to stay unused to avert the worst of climate change.