Sentences with phrase «liability structure»

If there was a decrease in the buying power of institutions with long liability structures, we would see less long term investing in fixed income and equity investments.
It typically happens to all of the firms with weak liability structures at the same time.
The good fund manager takes account of his implicit liability structure.
Early adopters of new asset classes and liability structures typically do well, but when they become mainstream, the dynamics can be ugly, as we learned in 2007 - present.
Life insurance companies have much longer liability structures than banks.
Weak Hands — no balance sheet or short liability structures, have to make a certain return each year, less experience, leveraged; they can't live with short - term losses.
For borrowers with short - term or floating - rate debt, we believe that now is the time to analyze your balance sheet and determine whether your current liability structure is appropriate for your situation.
That may seem small, but given all the errors that have occurred there, particularly from those that took on too much debt, it would have been valuable to spend more time guarding against aggressive liability structures.
What I am talking about are non-microcap companies with stable P&C liability structures and conservative reserving.
It has an horrific liability structure, atrocious reporting & governance since its IPO, and now it has negative consolidated equity!
Insurance companies typically have more ways to lose money than banks, and potential cash flow mismatches in the longer liability structure require more capital to fund potential losses.
Rationality will return when unlevered and lightly levered buyers, or buyers with long liability structures (looks at the actuary) hold their nose, and step up and buy with real money, not short term debt.»
Hedge funds have short liability structures, and often go out of business because they lose money, and investors leave them.
Repo funding is not a safe funding source during crises, and this is something that is not fixed from the last crisis, along with portfolio margining, and a few other weak liability structures.
Updated daily, it takes into account day - to - day movements in market value compared to a company's liability structure.
When I said that the cult of equity was dying, what I meant was that those investors and those liabilities structures such as pension funds and insurance companies that have depended on a 6.5 % constant real return from stocks such as we've have had over the past century are bound to be disappointed.
Strong Hands — long liability structures, excess capital, experienced, patient, never compelled to do anything; they can live with short - term losses.
It was also fascinating to consider why investors for a life insurance company, which has a liability structure that would allow them to buy and hold temporarily distressed assets, does not do so.
Risk that the Feds should care about is the toxic mix of illiquid assets funded by liquid liabilities; long liability structures r safe $ $
Because of the relative riskiness of the asset and liability structures, including the greater length of guarantees made, insurance companies generally run at a higher ratio of book equity to assets.
But what if you were clever as a financial institution, and had liability structures that were long, or distributed the risk of what you were doing back to clients.
Even if the majority of the liability structure is long, if a significant part of it was short, or could move from long to short, that's enough to set the company up for a liquidity crisis of its own design.
With the longer liability structures, and a highly competitive environment, the investment policy of most insurance companies is more aggressive than that of most banks.
When I think about REITs, I think about their asset - liability structure.
My client was growing rapidly, and 30 % of its liability structure was long because they wrote a lot of structured settlements.
Insurance companies have longer liability structures, and they survive many situations that would otherwise kill a hedge fund.
I think the sentiment among many who have answered here (that there is not much incentive given the liability structure in the US) is certainly correct, and it explains why chip and signature has gained some traction while chip and pin has not, but I think there is an additional element at play here.
With many investments, there is a liability structure.
The liability structure being invested against is short (We could need this cash at any moment for business use!)
The liability structure is long, but well - defined, such as a bank or insurer that wants predictable income versus their liabilities, and so the game becomes maximize spread net of default costs, subject to matching asset and liability durations (and maybe partial durations if the liability stream is long).
No assets should be bought that the liability structure of the bank can not hold until maturity.
The answer depends on your liability structure.
I view Berkshire Hathaway as an insurance company that uses its liability structure to fund its operating businesses.
Worse, their liability structures are weak, and their leverage is high.
Can the liability structure dramatically shorten?
Is the liability structure long enough to support them?
We are experiencing goods and services price inflation, asset deflation, and a monetary system where the Fed is not increasing the monetary base, but the banks are expanding their liability structures over the last year, but that may have finally peaked.
They wrote so much of them, that they comprised 25 % of their liability structure.
But in theory it would make sense to do so; we have a long liability structure.
There is some level of constraint from the spending rules employed by the endowments, particularly since 2008 - 9, when a number of famous endowments came to realize that there was a liability structure behind them when they ran low on liquidity amid the crisis.
Finally, the liability structure is longer for most insurers, making «runs» less likely.
Is the demand for investments that are optimal for entities with your liability structure greater than the available investments to be had?
The other way to view it is how sticky the liability structure is for the banks.
(Entities with longer liability structures, like pension plans, endowments, and life insurers would become the new source of lending.
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