The ratio of short term liabilities to short term assets has never been lower.
Debt-service ratios are lower, and their liquidity ratio the ratio of short-term assets to liabilities is historically high.
If your short-term assets are at risk in the stock market, you have made a fundamental mistake.
One of my bank clients has several billion dollars of cash and short-term assets on which it is earning just 27 hundredths of one percent interest.
By the end of 2007, money funds held a record 31% of corporate America's short-term assets, a share that is thought to have continued rising this year.
Holding a lot of long-term, illiquid assets and using very short-term markets for funding seemed fine when times were good.
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.
Secondly, the Fed holds long-term assets and short-term liabilities and yield curves generally slope upwards.
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.
The less charitable interpretation is that the central bank has softened the penalty for banks that have funded purchases of very illiquid assets with short-term paper.
As investors remain wary of risk involved in equity and commodity assets in the short term, Berkshire Hathaway sage Warren Buffett is in India, where he advised investors to stay out of long-term dollar-bound bonds, according to Bloomberg.
FORBES: Waning Sentiment Comes Alongside Advice For More Caution
Yet, this in turn could also provide some pressure in the short term if weakness in equities and risk assets leads to strength in the U.S. dollar, he said.
Until recently the Federal Reserve owned rather safe assets like gold, short-term Treasury bills and the short-term IOUs of commercial banks.
Short-term capital gains (meaning gains on assets held for less than a year) are taxed at ordinary income tax rates of up to 35%.
However since a bank only keeps a small percentage of its assets in cash or short-term investments if there is a run on a bank or handful of them the overall faith in the banking system could be rattled.
The more short-term reason why investors are buying US assets is that the minutes of the latest meeting by the US Federal reserve suggest that some Fed policymakers want the central bank to stop pumping money into the economy much sooner than previously thought.
Short-term capital needs--as in, assets likely to be expensed or converted to cash within one year.
Providing greater short-term liquidity might ease the taking back of assets on to banks' balance sheets and hence bring down interbank rates.
When the top line is not growing by much, the way to keep enhancing the bottom line is to get after all the short to medium term cost factors and continually sweat the assets.
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.
America's biggest banks now boast liquid assets of three to 11 times their short-term borrowings, according to Moody's.
As the commission's report makes clear, an EMP attack could devastate both civilian and military assets without harming humans--in the short term.
Vanguard would place the Muchmores firmly in its index funds, from the Short-Term Bond Index (charging 0.2% of assets per year) to the Total Stock Market Index (0.2%), a Wilshire 5000 tracker.
SIVs allow a money manager to borrow money in the short term in order to invest in higher-yielding or more risky assets longer term.
FORBES: This is a transcript of the After Hours video report.
Even after exchanging various assets for debt, by 1974 LTV had no short-term debt and a quarter of a billion in cash.
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.
Assets in savings accounts may actually be losing value thanks to short-term interest rates that are actually lower than the inflation rate.
That allows banks to use short-term funds raised from the sale of products to buy the longer-term assets that have the higher yield banks need to give investors the promised return.
This means that marketing is no longer viewed as merely a tool for building market share or short-term revenues, but is instead considered a strategic investment in building critical intangible assets, such as customer relationship and brand equity, which produce important long-term profits.
The accounting rules do allow you to designate assets as being held to maturity, or being held in the short-term.
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