Sentences with phrase «safe liquid assets»
That's because banks are legally required to have a foundation of very safe liquid assets, known as Tier 1 capital.
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Traditionally «safe» and liquid assets can now better compete for investor capital.
The resulting demand for highly liquid assets deemed safe is likely to keep rates historically low.
Our bottom line: Persistent risk aversion not only suppresses rates across the yield curve but raises the premium on assets seen as the most safe and liquid.
As Morgan Stanley's Global Co-Head of Economics Elga Bartsch explained in a recent Global Macroeconomic Briefing, investors are willing to pay a premium for safe, liquid assets.
Even if part of this decline was driven by a heightened liquidity premium the implication is the same: it indicates an increased demand for highly liquid and safe assets which, in turn, implies less aggregate nominal spending.
The safe liquid collateral was a slack asset to them.
Historically, over long periods of time, money invested in riskier assets such as stocks has generally rewarded investors with higher returns than funds invested in ultra safe and liquid assets.
Risk that the Feds should care about is the toxic mix of illiquid assets funded by liquid liabilities; long liability structures r safe $ $
In terms of how this relates to asset allocation in retirement, if you are comfortable with any given 5 year period being slightly below breakeven on a worst case basis, you could consider having about 5 years» worth of expenses in more liquid and safe assets and have comfort that the rest of your portfolio in stocks will at least hold their value pretty well.
Historically, over long periods of time, money invested in riskier assets such as stocks has generally rewarded investors with higher returns than funds invested in ultra safe and liquid assets.
To offset this, I strongly encourage a minimum of 2 years living expenses be transferred into a safe and liquid asset class (e.g., money market fund) prior to retirement.
My objective is to have a secured credit line with assets that are not as liquid (a home in this example) but where the loan is safe enough that any lender would be comfortable lending at the lowest available rates.
Make sure you have liquid safe assets to complement risky assets.
If you're within 5 years of retirement, start filling Bucket 1 with safe, liquid assets.
Why not replace it with equally safe and liquid assets that offered considerably more yield, like bonds backed by AAA - rated subprime or Alt - A mortgage collateral?
The safe liquid collateral was a slack asset to them.
How safe and liquid are the assets?
He knows how much will be needed and when, and has planned out updates to his asset mix so his investments will be 100 % safe and liquid by the time he needs the cash.
In an ideal world, we could meet our future financial needs by investing in safe, liquid, short - term assets.
The outcome (90 minus your current age) is the percentage of the total assets that can be invested in growth - oriented products (equity and equity related) while the rest should be invested into assets (debt and other fixed instruments) which are safe and liquid.
While much of that money may initially be parked in more liquid assets like US Treasury bonds and safe - haven currencies such as the Swiss franc, there is growing evidence that foreign property sales may receive a boost.