4. Total debt service for the Treasury falls, too, as higher interest earning bonds are replaced with reserve balances earning 0.25%. Effective debt service on purchased bonds now is 0.25% since interest on reserve balances reduces the Fed’s profits that are returned to Treasury each...
Though the calculation is a bit noisy, the chart does illustrate why the massive expansion of the central bank’s balance sheet has yet to translate into a significant increase in inflation. When credit begins to expand as the economy picks up the Fed will have to execute what George Sorosca...
The article offers information on Federal Reserve (Fed) which has ended the third round of its so-called quantitative easing (QE3) and also informs about the impact of ending purchasing process on stock and bond investors. According to Dean Maki, chief U.S. economist at Barclays PLC in New...
where 𝐿𝑃LP denotes the TIPS liquidity premium, 𝐻𝑃𝑊HPW is the market-wide liquidity risk, and 𝑢u is the error term of sovereign yield spreads of commodity-exporting countries. 4.1. The Relationship of the U.S. QE with the TIPS Liquidity Premium In the first regression of the...
As both high-grade mines continue to generate strong operating cash flow, we paid down the remaining $29 million balance on our revolving credit facility on schedule at the end of June. Wesdome is now debt-free, an important step as we position the Company for long-term sustainable growth....
Whichcote has annual revenue on credit of $12 million, with an average receivables' collection period of 3 months, and a bad debt rate of 1%. A proposed non-recourse factoring scheme is expected to reduce the receivables' collection period to 2 months, will provide cash advances of 40% ...
The American economy is built on credit. In the last decade, however, cheap credit made it too easy for people to buy houses based on pure speculation that real estate value would endlessly continue to increase. But the housing___set off a chain reaction in our economy....