Sentences with phrase «take asset risks»

They take asset risks everywhere.

Sadly, the idea that a central bank should not take asset risks is out the window.

Not exact matches

Soon after, concerns about liquidity and asset quality put many other institutions at risk, including Bank of America and Citigroup, which took billions in loans from the government to weather the chaos.

As the traders battle for the best portfolio of the year, FMHR trader Jim Lebenthal takes risk off the table, and Stephanie Link, TIAA Global Asset Management, is focusing on quality.

«In securities trading,» he said, «it currently takes several days to transfer assets, thereby increasing counterparty risk.

In a separate hearing on ICOs in Congress last week, Mike Lempres, chief legal and risk officer for cryptocurrency exchange Coinbase, said the company does not trade ICO tokens because it «can not take the risk of inadvertently trading an asset that is later found to be a security.»

Garnering less enthusiasm were considerations such as asset allocation strategy (balancing an investment portfolio to take into account goals, risk tolerance and length of time), with a mean of 4.7, and understanding price - earning ratios for traded stock, which saw a mean of 4.3.

«In a strong market, people tend to take more risks and move into some riskier assets.»

As a result, pension funds have had to go out on the risk curve, taking more risk to glean more return by investing, in part, in assets that are not as liquid as stocks or bonds.

«With the US labor market recovery gaining momentum, the hope for stronger global growth in 2014 is motivating investors to take on risk,» said Kathy Lien, managing director of FX Strategy at BK Asset Management.

«Robo adviser is just an asset allocation program which takes your risks preferences into account,» Sharma said.

«For many people, the only way to keep assets growing enough to not only beat inflation but hopefully grow in real terms is to take on some equity risk.»

If dealer inventories take the hit, risk assets get crushed and people move into Treasuries.

After all, when a central bank influences the cost of financing through changes in the policy interest rate, its actions affect the economy by changing asset prices, encouraging or discouraging risk taking, and influencing credit flows.

The notion is that by pursuing a slightly tighter monetary policy, the central bank would take out insurance against the risk that the rise in asset prices is a bubble and that its busting would be disruptive.

Taking on such risk may be understandable when markets are only moving up, but in a volatile environment like the one we're in today, having a portfolio of assets that tend to move together can leave investments especially vulnerable.

Taking on that kind of debt would be a risk the company can ill afford amid headwinds in Canada as consumers carry record debt, said Stephen Groff, who helps run $ 6 billion as a portfolio manager at Cambridge Global Asset Management, a unit of CI Investments Inc..

Part of this underperformance was due to selling during crashes and buying during booms, part of it had to do with frictional expenses such as brokerage commissions, capital gains taxes, and spreads, and part of it was the result of taking on too much risk by investing in assets that weren't understood.

But Mnuchin extends that argument about transparency into something more like a rap sheet: take Beijing's money, he warns, and risk being trapped in a debilitating cycle of debt — something that has led to asset - stripping by Chinese practitioners of what the National Defense Strategy calls «predatory economics.»

But more firms are reporting that economic conditions have improved and more are now prepared to take a risk and invest in new assets.

If you haven't taken the time to draft a living will or outline exactly how you want your retirement funds — and any other financial assets you own — distributed upon your death, there is a risk that your significant other may not see your hard - earned dollars.

Jensen's alpha takes into consideration capital asset pricing model (CAPM) market theory and includes a risk - adjusted component in its calculation.

[A] mong the elements to be taken into account for purposes of determining what constitutes an «extraordinary» action, which would normally be outside the apparent authority of senior executives, are the economic magnitude of the action in relation to corporate assets and earnings, the extent of risk involved, the time span of the action's effect, and the cost of reversing the action.

We've had some market volatility this year that we've seen that may make some investors uncomfortable, but the reality of it is, the conversations we were having up to this point is, make sure you rebalance your portfolio to make sure that you're not taking on too much equity risk, and that your asset allocation is aligned to meet your goals.

The bottom line: Investors are being offered better returns for taking risk in the low - return landscape, and a portfolio allocation to a broader, diversified mix of assets — including alternatives, global equities and emerging market (EM) assets — can potentially help improve returns, in our view.

This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.

But this masks the reality that equities — and by extension other risk assets — still look attractive taking into account that bond yields are likely to stay historically low.

Ideally, investors want to take three factors into account in portfolio construction: the expected return for each asset, the expected risk (normally expressed as the standard deviations of return) and the co-movement of each asset.

Combined with reduced risk - taking in the financial system as a whole, this would then further reduce market - makers» willingness to build up large inventories of less liquid assets.

«America's asset is, simply risk taking and the use of optionality, this remarkable ability to engage in rational forms of trial and error, with no comparative shame in failing, starting again, and repeating failure.

In our latest check - in, Lisa Emsbo - Mattingly, Fidelity's director of asset allocation research, explains that a healthy economic picture doesn't mean it's a good time to take on more risk.

If that's the case then the portfolio's asset allocation reflects the fact that you can take more risk on the equity side — in the hope of better returns — as long as you're not banking on those returns to enable you to live.

If there's not a single buyer that will take on both the assets and liabilities without the government assuming private default risk, Bear's assets should be put out for bid, Bear's bonds should go into default, and by the unfortunate reality of how equities work, Bear's shareholders shouldn't get $ 2 - they should get nothing.

As they have done so, credit spreads on these assets have declined, which means that investors are receiving less compensation for the risk they are taking on.

Other risks can be insured through commercial insurers, but now more and more asset managers understand and want to take advantage of the major tax & accounting benefits of formalizing self - insurance through a captive.

Often overlooked, the asset mix determines your expected return and the risk you take.

If you want to mitigate risk, place investment decisions like buying and selling stock in the hands of a professional, diversify easily and inexpensively, and take advantage of using more than one style in a single asset, mutual funds may be for you.

Lastly, as noted in BCA's 2014 outlook report: In a liquidity trap, where interest rates reach the zero boundary, the linkage between monetary policy and the real economy is asset markets: zero short rates act to subsidize corporate profits, drive up asset prices and encourage risk - taking.

Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.

Sustained low rates tend to promote excess leverage, risk taking, and asset bubbles.

In addition, putting down collateral such as your property or personal assets is a big risk that no one wants to take.

It's also important to define your timeline and how much risk you're willing to take on in order to determine your optimal asset allocation.

These portfolios allow you to invest your assets according to the amount of investment risk you're comfortable taking and the return characteristics you prefer.

You end up taking more risk by buying riskier assets which pushes up its price causing you to feel wealthier.

But I am concerned that late - cycle entrants into risk assets like stocks and high - yield bonds are taking a leap of faith at a time when there is less room for markets to move up and growing risks of them falling back.

Now, a growing number of institutional investors are watching cryptocurrencies as the frontier of risk - taking to evaluate the sustainability of asset prices.»

The real question is what will it take in order to put weaker credits under stress if the 3 % psychological level didn't pose major risks for this asset class?

Noting that monetary policy works in part by altering financial prices and asset values, and thus by affecting risk - taking and borrowing and saving decisions, it questions the notion that the monetary policy and financial stability goals of central banks can be neatly separated.

Our return expectations across most asset classes are at post-crisis lows, but we believe investors are getting compensated for taking on risk in equities, selected credit / emerging markets (EM) and alternatives.

Last month the European Central Bank vice president said Bitcoin was a «speculative asset» where investors were «taking that risk of buying at such high prices».