The huge short term balance sheet risk that JPMorgan is undertaking is compensated by the hefty penalty if the deal breaks down.
Of course, sprucing up the balance sheet in the short term only takes you so far.
It closed underperforming stores and dramatically improved its balance sheet, eliminating short- and long-term debt.
Pollan himself offers this illuminating cheat sheet for an already short book.
According to Fingold, the stock is cheap too: 10% to 15% cheaper than its peers, despite having a stronger balance sheet and better predicted short-term earnings growth.
But while Immelt has taken major steps toward shoring up the company's balance sheet, including slashing its reliance on short-term commercial paper and reducing risky real estate loans, GE is still vulnerable to rising interest rates and unwelcome scrutiny from regulators.
But most of those initiatives have either failed to get off the drawing board, such as the MLEC, which was aimed at relieving banks of their off-balance-sheet liabilities, or they have fallen short, such as the HOPE NOW Alliance for modifying mortgages.
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Or to buy short-term paper issued by off-the-balance-sheet financial units of major banks that were not transparent to the investment community.
The usual approach is to conduct reverse-repurchase agreements, borrowing from one of its 16 primary dealers for short periods of time in order to finance the assets on its balance-sheet.
For example, while the short-term advantage of outsourcing manufacturing processes allows for a satisfactory quarterly balance sheet, this strategy lacks long-term vision and can be an inefficient means of overseas operation.
Hormel has cooked up a healthy balance sheet with no long-term debt load and enough cash to meet short-term debt.
At the same time, Mr. Rothschild publicly accused Bumi PLC's locally-listed affiliate Bumi Resources of failing to clean up its balance sheet, including calling in loans to related parties that he argued fell short of U.K. governance rules but which Bumi Resources said had been disclosed in due diligence.
Consumer debt in Brazil is of very short tenor at about 1.5 years and is paid back fast, which means balance sheet repairs happen quickly.
By providing a combination of capital and liquidity, this facility will effectively substitute public for private balance sheet capacity, in a period of sharp deleveraging and risk aversion in which such capacity appears very short.
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