This creates an excess supply of securities, driving up the interest rate.
An increased demand for money will, in part, reduce the demand for and increase the supply of securities; it tends to create an excess supply of securities and to raise the interest rate.
It will tend, therefore, to create an excess supply of securities, to lower securities prices, and to raise the rate of interest.
By reducing the supply of securities available to other investors, it forced them to pay higher prices — that is, to accept lower interest rates — and to shift money into riskier investments with much the same effect.
If they did well, they came back for more and in time they built their businesses on the supply of securities from Drexel.The key to their loyalty was Mr Milken's commitment to buy or sell on demand the bonds that Drexel had underwritten: he thus offered them a liquid market and a way out of investments they no longer wanted.
Stock levels a decade out result almost solely from shifts in the supply of securities six to ten years hence.
In addition to schools in disrepair and a lack of educational supplies, absence of security, violence, lawlessness and the collapsing economy provide additional challenges to meeting this goal and have a particular impact on girls.
The supply of nonagency securities is shrinking while demand is not, Mr. Gundlach said, helping to drive up prices, while the government's involvement in the market has helped to create a price floor.
Another reason mortgage interest rates are not expected to rise sharply is that the supply of the securities has not increased substantially, said Michael Fratantoni, vice president for single-family research at the Mortgage Bankers Association.
