Exact(1)
Software starts with a sensible plan and sticks to it, making adjustments solely based on actual market data, buying asset classes that are more likely to be relatively cheap (the ones that have gone down) and selling those that are more likely to relatively expensive (the ones that have gone up).
Similar(59)
All of them are developing asset-management businesses; some are thinking of buying asset-management firms.
The central bank announced further measures to encourage lending by buying asset-backed securities.
It is also to start a programme of buying asset-backed securities.
But if buying asset-backed securities doesn't work, QE will be the one remaining shot in the locker.
The ecb will be doing its bit to help by buying asset-backed securities (ABS) under a programme that started in late 2014.
Central banks eventually restored confidence and brought rates to heel by flooding the market with liquidity and by buying asset-backed securities for which private-sector buyers had largely disappeared.
Based in Frankfurt, but run by Mario Draghi, an Italian, the ECB said on September 4th that it would cut its interest rate to 0.05% and start buying asset-backed securities from banks to get them to lend.
The central bank said it would consider closing the gap by buying asset-backed securities issued by the banks, including some backed specifically by commercial paper from small companies.
Mortgage companies have played a central role in the recent market tumult as banks have all but stopped buying asset-backed securities, fearing that the assets were bad subprime loans.
The ECB is already buying asset-backed securities (bundles of bonds) in an attempt to stimulate lending, but many economists would like to see some more aggressive stimulus to pull the eurozone out of its current economic morass.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com