This is the program in which the Fed simultaneously sells short-term securities and buys longer-term ones.
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These include the stockmarket, the bond market (government and corporate) and the money market for short-term securities, such as commercial paper.
Money-market funds are a specialized kind of mutual fund that is restricted to investing in very short-term securities with little chance of default.
He said the cheap money has compressed the bank's lending margins, as well as the returns the bank makes on cash and short-term securities.
The euro and European and U.S. stocks also climbed after his Sept. 6 announcement that the ECB would purchase short-term securities of troubled euro zone governments.
In a normally growing economy, long-term rates are higher than those on short-term securities to compensate investors for the risk that inflation will eat into the value of their holdings.
He said the cheap money has compressed the bank's lending margins and spreads it makes on client transactions, as well as the returns the bank makes on cash and short-term securities.
The only difference under quantitative easing is that the purchases probably focus on longer-term Treasury securities rather than short-term Treasury securities hoping to push longer-term yields down a bit as well as get credit and money flowing again.
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When even corporate treasurers are taking their money out of short-term securities and parking it in no-interest cash, you know the big boys are discovering the same anxieties Mom and Pop have known for a year as they ran out of safe havens for their assets.
Under Operation Twist, already under way when the Federal Reserve said it would embark upon purchases of mortgage-backed securities last month, the central bank uses proceeds from the sale of short-term Treasury securities to buy long-term ones in its bid to push down long-term rates.
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This is where the Fed switches from buying short-term Treasury securities to buying long-term ones in a bid to push down long-term yields without increasing its balance sheet.
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The Fed conducts traditional monetary policy by buying or selling short-term Treasury securities in the open market.
Money market funds invest in short-term fixed-income securities or commercial paper from governments, financial institutions and corporations.
Bond trading made the situation seem dire, although it may well have been affected by investors fleeing the stock and commodities markets and parking their cash in short-term Treasury securities, fearing to trust banks in light of the current economic turmoil.
Mortgage REITs, which use short-term debt to buy longer-term mortgage securities, also are at the greatest risk if interest rates rise because that would increase their short-term borrowing costs and cut the value of the mortgage bonds that they hold, possibly resulting in losses and reduced dividends.
The answer came back short-term Treasury Inflation-Protected Securities ( TIPS).
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American Express earns a net interest income on the spread between the rate it earns from un-loaned amounts sitting in bank deposits and short-term investments in financial securities and the rates at which it extends credit to card members.
Hard-to-sell long-term securities had been bought with short-lived debt, which left borrowers vulnerable to a change in sentiment every time the debt fell due.
Green Tree Financial found itself in a life-threatening credit squeeze because the market had lost faith in its mortgage-backed securities and refused to refinance its short-term debt.
But it is too soon to tell whether the vehicle will ever be restored to its former pre-credit-crunch glory, when it was able to issue short-term commercial paper to fund its investments in asset-backed securities.
Countries also are divided over the treatment of repurchase agreements, a form of short-term borrowing for dealers in government securities.
Net cash is a traditional measure of excess cash and is calculated by totaling cash, marketable securities and short-term investments, and subtracting current liabilities.
For example, we could increase the duration of our investment portfolio, we could go out and buy a lot of securities that have good short-term yield but have higher credit risk.
Known as conduits, these special-purpose vehicles borrow in the short-term, commercial-paper market to make acquisitions of highly rated paper in American asset-backed securities, and have been walloped by the plunging value of those assets since the frailty of subprime loans were exposed.
By February 2005, a confused Greenspan admitted the fact that yields on 10-year Treasury securities kept falling even as he and fellow Federal Reserve policy makers kept raising short-term rates.
The securities, Morgan Stanley said, were short-term and highly rated.
Economist Manu Bhaskaran of SG Securities Asia is bullish about Malaysia's short-term prospects, expecting GDP to grow 2.5% in 1999.
The preferred securities would yield 2%, generating some limited short-term income for the investors.
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Seth Setrakian, co-head of U.S. equity trading at First New York Securities, thinks a reversal is coming in the short-term.
Seth Setrakian, co-head of U.S. equities at First New York Securities, offers a slightly different take from a more short-term perspective.
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