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Now that the stockmarket crash has exposed the risks of hedging fixed liabilities with floating assets in the form of shares, they are increasingly choosing corporate bonds instead.
Calculate all long-term liabilities, also known as fixed liabilities.
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Debtors have less cash to deal with a fixed liability.
Alternatively, the F.D.A. should fix the liability problem by amending its regulations to allow generic manufacturers to change the warning labels.
The same thing was true in the case before us and the jury were instructed that if that could be done they were to fix the liability in accordance.
It is true that it would be inaccurate to say that the owner repudiated the contract in toto, for the letter that we have quoted assumed that the contract was binding and referred to it as fixing the liability incurred.
Many central banks have the authority to fix and to vary, within limits, the minimum cash reserves that banks must hold against their deposit liabilities.
The numbers appear frozen: sales unchanged at about $10 billion since 1993; net income hovering around $64 million 2020 cents on either side of $1.70 a share for the past three years last yearr it was $1.65 a share);assets virtually unchanged, at about $3 billion, and liabilities also fixed, at about $842 million.
But Gunnar Beck, an EU analyst at London's School of Oriental and African Studies, called the decision "a completely absurd judgment from a legal point of view", because it meant Germany's liability was fixed "unless it is decided otherwise, which means there's no limit to it".
First, net monetary assets (essentially cash and receivables minus liabilities calling for fixed monetary payments) lose purchasing power as the general price level rises.
The value of their liabilities remains obstinately fixed, as if written in sun-dried clay, even as the value of their assets plunges.Households and firms will respond by "deleveraging", seeking to lighten their debt burdens.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com