Sentences with phrase «true economic capital»

The ratio of market price to book value has declined for the biggest banks, and that is one sign of falling values for true economic capital, even though banks have met the letter of law by increasing capital as the regulations specified.

Not exact matches

Assuming that the total amount of bad debt in the banking system exceeds total bank capital — something which is almost certainly true — the conversion of debt which can not be serviced into an equity position that is unlikely to generate much more (and in an economic downturn, which is when we are most concerned about the debt burden, we can assume that the decline in value of these equity positions will be highly correlated) leaves the net indebtedness of the banking system unchanged, and so the contingent liabilities of the government are unchanged even as reported debt in the system declines.

In order to find value, it's time to get back to the basics of reading footnotes and focusing on economic earnings and return on invested capital (ROIC), the true drivers of valuation.

Not only is that not true — as it is a reflection of Fed policy rather than economic fundamentals — certain sectors like capital spending and manufacturing are in recession already.

In addition, amid persistently easy policy, company leaders had a difficult time gauging the true level of U.S. economic growth, and as a result, many corporations delayed committing capital until they had more clarity.

Factoring in the true amount of capital invested in the company reveals that on the contrary, it actually makes negative economic earnings.

Although this observation is true in some respects, it fails to take into account the time lag involved between a nation's stock of human capital and its economic output.

«Wilshire's well - respected broad market index heritage combined with EVA Capital's access to a robust methodology that helps identify positive economic value for investors is in the true spirit of Wilshire's deep commitment to deliver actionable insight to the investor.»

First, the CJEU decided in Case C ‑ 451 / 05 ELISA that the French legislation unduly restricted capital movement between Member States and secondly, the it decided in Case C - 72 / 09 Établissements Rimbaud that this was also true between for capital movement between a Member State and EEA - countries under Art. 40 of the Agreement on the European Economic Area.

In an additional discussion on Twitter meanwhile, BlockTower Capital CIO Ari Paul suggested that age - old economic theory — specifically MV = PQ — demonstrates that a cryptocurrency acting as a true store of value will ultimately usurp one being used for short - term profiteering.