You could do the same
with other liquid assets you have.
Not exact matches
My point was and is that the equity risk premium is bundled up closely
with the nature of the security itself (i.e., being a publicly traded, relatively
liquid investment
asset called an equity, that has a very specific bundle of rights and risks attached to it), which has very different characteristics than the many
other financial
assets available in the economy (many of which have bundles of risk that are perceived as «riskier», and many of which are perceived as «less risky»).
(a) Share of total Australian dollar
assets (per cent), subcomponents are the share of
liquid assets (b) While deposits
with other banks are a store of liquidity, they do not contribute to the stock of liquidity held by the banking system as a whole, since the recipient banks will, in turn, need to hold additional liquidity against these deposits; consequently, they are excluded from this table (c) Includes Commonwealth Government Securities and securities issued by the states and territories (d) Includes notes and coins, Australian dollar debt issued by non-residents and securitised
assets (excluding self - securitised
assets)
Three
others could also boost income: counting municipal bonds as
liquid, or easy - to - sell,
assets; requiring less debt that won't have to be paid back if a bank fails; and making it easier to comply
with post-crisis rules.»
Use to be that if a borrower had
other compensating factors such as a large reserve of
liquid assets then they would approve the loan
with a higher than normal debt to income ratio.
The
liquid - alt pitch is that individuals can access the same types of investments as university endowments and
other big institutions, to diversify equity - heavy portfolios, typically
with a 10 % to 20 % allocation to
liquid alts... The advantage of the [AQR Managed Futures] strategy -LSB-...] is that it is uncorrelated
with other asset classes, and «has the most consistently strong performance in equity bear markets.»
Wells customers
with at least $ 1 million in savings or
other liquid assets still have the option of making interest - only payments for the first 10 years.
Those
with significant
liquid assets may choose to self - insure, but most
others can not afford to do so.
Such market permit
other financial institutions
with liquidity needs to borrow in a short period of time from
other companies
with excesses, that adapts those banks to elude keeping far too large sums of their means, which are based on
liquid assets such as cash to control any implicit expenses from the clients.
To the extent a Fund sells securities short, it will provide collateral to the broker - dealer and (except in the case of short sales «against the box») will maintain additional
asset coverage in the form of cash, U.S. government securities or
other liquid securities
with its custodian in a segregated account in an amount at least equal to the difference between the current market value of the securities sold short and any amounts required to be deposited as collateral
with the selling broker.
With respect to futures contracts that are required to «cash settle,» however, a fund is permitted to set aside or earmark
liquid assets in an amount equal to the fund's daily marked to market (net) obligation, if any, (in
other words, the fund's daily net liability, if any) rather than the market value of the futures contracts.
In addition, the fund will earmark cash or
liquid assets or place in a segregated account an amount of cash or
other liquid assets equal to the difference, if any, between (1) the market value of the securities sold short, marked - to - market daily, and (2) any cash or
other liquid securities deposited as collateral
with the broker in connection
with the short sale.