Sentences with phrase «to lend long»

They suggest the best companies and banks which lend you long term loans.

Banks would no longer do «maturity transformation» by lending long against short - term deposits.

So they can mint money by borrowing short and lending long without fail.

At certain points lending long is attractive, or taking credit risk, or raising capital to start a business.

The layering of debt upon debt, and borrowing short to lend long decrease financial system resilience.

In the current crisis, the Fed, far from being independent, is absorbing credit risk, and lending long risk, and is doing so without abnormal compensation, indeed the compensation is sometimes subpar.

Regulate the banks tightly, because their borrowing short and lending long causes most financial crises, but in general, the government errs when it encourages us via the tax code to do anything.

Systemic risk stems from a call on liquidity at financial firms that borrow short and lend long for their own accounts.

I wouldn't be surprised to see more money managed by firms like NLY... If banks are simply in the borrow short / lend long business, take that out of a bank and let investors invest in it directly.

Banks borrow short and lend long confident that they can obtain liquidity as necessary from the Fed.

They borrow short and lend long which I've always held is a recipe for disaster.

Or, borrow short and lend long when the yield curve is steep, hoping the situation will correct with the long yield coming down, rather than a 1994 scenario, where short rates outrace long rates higher.

Also the borrow short, lend long inherent in Auction Rate Securities, TOBs, and other speculations that make wondeful sense occasionally, but players stay too long.

Hoskins also argues that low short - term rates fed excesses at investment banks, which relied heavily on overnight financing while lending long term.

Some investors fear BBVA is taking a big risk by getting into unsecured personal lending long after online lenders have established themselves, but bank officials argue the bank's cost of funds and in - depth knowledge of its customers will help it to outdo the competition.

On top of this, since sub-prime borrowers could theoretically have a better chance at finishing repayment, it could be assumed that auto lenders are reducing their risk by lending a long - term loan to a sub-prime consumer.

And mortgage companies may be reluctant to lend long term on the tax debt portion of a mortgage, even though H.R. 2001 says tax payments can be spread over 30 years, NAR analysts note.

This makes sense because the credit markets tighten up in an environment in which it is more expensive to borrow short than lend long.

They borrow short and lend long.

Finally, by flattening the yield curve, the Fed's purchases have harmed commercial banks, the profits of which come mainly from borrowing short, lending long, and pocketing the difference.

Furthermore, when the curve is flat or inverted, banks can not make money by borrowing short and lending long.

A bank's basic function is to «borrow short and lend long».

But if they want to make money, the banks have to take credit risk (something the Fed is trying to stimulate), and / or interest rate rate risk (borrow short, lend long, negative convexity, etc).

Malpass: The Fed is a giant, heavily leveraged SIV, borrowing short and lending long, w / only $ 55B of equity capital.

No more borrowing short and lending long.

But that is not the main issue with financial crises; we need to restrict that ability of banks to borrow short and lend long; we also need to restrict their overall leverage.

Most crises are due to misregulation of banks — too much leverage, bad credit risks, and borrowing short to lend long.

It is almost always more profitable in the short - run to finance short and lend long.

Most of the time, I also favor regulation of financial companies, because when too many of them borrow short and lend long, something horrible happens to the economy as a whole.

If banks did not engage in maturity transformation, borrowing short and lending long, we would have almost no banking crises.

Depository institutions make money by borrowing short and lending long; they collect the spread in between.

Banks and financial institutions, who borrow and lend at different rates and maturities (e.g., the classic model of borrowing short and lending long).

«They will benefit from rising rates, as U.S. banks are more inclined to invest in the bond market — borrow short and lend long — than their Canadian counterparts,» Levine said.

But borrowing short and lending long is dangerous game — one that can quickly turn winners into losers when interest rates begin their long - anticipated comeback.

Central banks by their nature abhor two risks, credit risk, and lending long.

It is almost always initially profitable to borrow short and lend long.

That is another impact of the federal reserve flooding the debt markets with liquidity — the safe investments yield little, forcing those that want yield to take significant risks, whether those risks are lending long, high credit risk, operational risk (common stock and MLP dividends), or subordinated credit risk (preferred stocks).

Rather, let the FSOC focus on all lending financials that borrow short and lend long, particularly those that use the repurchase markets, or fund their asset inventories via short - term lending agreements.

Borrowing short and lending long is profitable, at least in the short - run.

Borrowing short and lending long is unprofitable, at least in the short - run.

Banks borrow short and lend long.

Since these firms borrow short and lend long, that's a killer.

There were also hedge funds that tried to exploit the yield differential, borrowing short and lending long.

By becoming commercial banks and having a larger spectrum of loans to choose from, the S&Ls will act like banks and whenever possible eschew «borrowing short and lending long».