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Quantitative easing typically involves purchases of longer-term assets.
In exchange, Canary deposited longer-term assets in a money market fund, the complaint asserts.
Investors then have to sell the longer-term assets financed with the short-term debt.
Second, carry traders borrow short-term money in Japan but may invest in longer-term assets outside Japan.
Still, the Fed might hold on to some of the longer-term assets for a while, which could slow down efforts to shrink its balance sheet.
By contrast, GMG's wider losses are largely the result of the restructuring of its portfolio over recent years, leading to its investment in longer-term assets.
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Shiller was recognised for his work on longer-term asset prices, establishing that stock prices fluctuated much more than corporate dividends.
"We traded a short longer-term asset (Soler) for a short-term asset (Davis)," Hoyer said.
He currently manages the CAF Charitable Trust and investment propositions, looking to provide donors and investors with services that maximise the potential of their charitable donations and longer term assets.
Most of the increased loss came on A&L's investments in structured investment vehicles (SIVs), sophisticated debt vehicles which borrow short-term money and then invest it in longer term assets.
While political intrigue and jostling for power offer short-lived rhetoric about how to generate jobs and livelihoods, we must keep sight of the longer term assets, on which our ultimate prosperity lies.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com