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"Valuations of a lot of securities look pretty stretched.
To banks with a lot of securities market activities, that sounds like a harsh rule.
"If the banks maintained the lending standards that they had established in the past, and had not and did not buy a lot of securities from Fannie Mae and Freddie Mac, they've got no problems and they're sound," said James F. Gatti, a finance professor at the University of Vermont.
At a given point in time, there's a fixed supply of these securities that has to be held by someone, so the market would look like this: But in the current situation, a lot of securities are held by market players who have leveraged themselves up.
Short-term Treasuries are still a liquid market, but we now know that within money market funds lurk a lot of securities that defy the safe and liquid standard that investors expect from "cash equivalents".
Short-term Treasuries are still a liquid market, but we now know that within money market funds lurk a lot of securities that defy the safe and liquid standard that investors expect from "cash equivalents". Some companies have even used stocks as "cash equivalents," arguing that because they're liquid, it's acceptable.
Similar(53)
A lot of security we use to authenticate a user is a secure transaction.
"There's lot of security".
Here, they don't bother with a lot of security.
"We've made a lot of security provisions.
The film-makers had a lot of security with them".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com