Secondly, the Fed holds long-term assets and short-term liabilities and yield curves generally slope upwards.
When this happens, the Fed, rather than the banks, will take the balance sheet hit on trillions of dollars of long-term assets.
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"This should be a great time to invest in long-term assets such as energy, but clear policy is needed in order to release it, " he said.
With most of the funds tied up in long-term assets, that could leave the banks short of cash if investors stop buying new products.
These gave banks more freedom to use models to value illiquid assets and more flexibility in recognising losses on long-term assets in their income statements.
For investors in the stock market, it is a general rule to assume that long-term assets should not be needed in the three- to five-year range.
Long-term nominal interest rates are influenced by many things, including investors' expectations of inflation and future short-term rates, and a risk premium for holding long-term assets.
They treat capital expenditures, like buildings and long-term assets, the same way they treat operational expenditures, so it's really impossible to tell if we have a surplus or deficit or what.
The fact is, mortgages in general, and the uniquely American 30-year fixed rate, prepayable, self-amortizing mortgages in particular are, like many long-term assets with built-in options, extremely difficult to price properly.
If yields are low because investors demand less compensation for holding long-term assets, then financial conditions have become looser and the central bank, other things being equal, needs to continue tightening.
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The commercial paper market is growing increasingly antsy and GE, not unlike a hedge fund, is stuck with some percentage of long-term assets that it is trying to fund with short-term money.
Long-term liabilities should be funded with long-term assets.
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The other, fee-based side of its business involves managing long-term investor assets in exchange-traded funds, mutual funds and money market accounts.
Holding a lot of long-term, illiquid assets and using very short-term markets for funding seemed fine when times were good.
It acquires equity in startups often on the cheap via a hodgepodge of sources: venture funds in wind down mode, pension funds and endowments looking to purge long-term illiquid assets from their portfolios, or just founders, VCs and angels starved for a little liquidity.
Others will make bigger adjustments, putting some assets needed for short-term expenses in safe investments like money-market accounts while leaving assets for long-term expenses in riskier investments like stocks.
Comparing long-term debt to current assets helps measure financial stability and highlights a potentially worsening situation within a company.
Littman Krooks LLP counsels individuals and families to plan for retirement, long-term needs, and protect assets.
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One part ("the bad bank") will assume all the residential and commercial real-estate loans and securitized mortgages as assets, and all the long-term debt as liabilities.
Lydall ( LDL) lowered its expected long-term rate of return on plan assets to 7.75% for 2012, from a prior 8%.
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"This transaction is in line with BP's strategy to focus on a smaller number of higher-value assets with long-term growth potential and to continue the simplification of our portfolio with a further reduction of operated infrastructure and wells, " said BP chief executive Bob Dudley.
For this reason, it is risky for any senior without long-term care insurance or very large assets to make gifts of any amount, even to charity, because it might jeopardize their ability to enter into nursing home care at any time during the following five years.
If you can afford it, consider purchasing long-term care insurance to preserve both your assets and your choice of care and facilities.
Instead, allocate your assets for the long-term based on your financial need, and select low-cost index funds and ETFs to capture the returns of asset classes you select.
Under this rule supervisors should require financial institutions to value assets using a long-term moving average when they are pledged (explicitly or implicitly) as collateral for new credit.
Note: Short-term policies are not eligible for the Long-term care Partnership program, which allows people to preserve additional assets and still receive Medicaid benefits.
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It required banks to write down the value of assets (such as long-term bonds) to market value, even if the banks intended to hold them until maturity.
Despite the rebound in portfolio valuations, some LPs harbor doubts whether PE can continue to generate attractive long-term returns given the high prices paid for assets acquired in the early stages of the recovery.
All this might lead some investors to think that dollar assets will offer a better long-term return on their money.
Rather than simply buy a pied-a-terre in an enviable locale by which to park money as a long-term investment, more wealthy buyers are snapping up properties that they can rent out as income-producing assets.
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