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As investors continue to pull out of bonds to pursue higher equities returns, Mr. di Galoma said, yields will continue to rise.
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So, it is better to have higher equity capital.
Higher equity requirements are not difficult to meet.
In effect, requiring higher equity makes both their equity and their debt safer.
It is encouraging to see these individuals push for higher equity (less debt relative to total assets); I favor much higher equity throughout the financial system.
● Not surprisingly, longevity of ownership of a house is statistically correlated with higher equity holdings.
The academics are right to say that higher equity need not kill off lending.
Higher equity capital requirements and effective size caps are complementary approaches, not substitutes or competing ideas.
Lower bond yields encourage borrowing; higher equity prices raise consumption; both help investment and boost demand.
Higher equity prices mean more investing and (through the wealth effect) more consumption.
IT MAY seem obvious that faster economic growth should translate into higher equity returns.
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