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"These agency spending reductions, however, only represent a first step".
So the corporation has devised mechanisms to mitigate these "agency costs".
For starters, a lot of traditional buyers of these agency mortgage bonds have either stayed on the sidelines or bought far fewer bonds than their portfolio allotments allow.
Standard & Poor's estimates that the People's Bank of China held $340 billion of these agency securities at the end of June, but has been unable to estimate Asian holdings over all because the data is too unclear.
It is only in the past 30 years that economists have started to explore seriously the implications of these "agency costs"—the financial loss to the "principal" (the shareholders) due to the abuse of discretion by the "agent" (the manager) hired to run the firm.In the world of Modigliani and Miller, no account was taken of agency costs.
These agency costs could come in several forms.
Similar(43)
Now, suddenly, these agencies are dispensable.
Los Angeles County alone had 71 of these agencies.
These agencies need full support.
These agencies work on a cultural level.
These agencies report increased inquiries from restaurants.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com