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Asset-backed Securities These are debt instruments, usually backed by receivables other than those arising out of real estate, and issued through special purpose vehicles. [Capital Market Taxonomy]
Deflation Economics
By John Schroy, on April 10th, 2010 |


Deflation is said to occur when general price levels fall. The last important example of general deflation in the United States occurred during the Great Depression. Federal Reserve officials and central bankers around the world often regard deflation as a greater risk than inflation. Under the Obama administration, US central bankers are now wary of both deflation and inflation.
Q1 2006
By John Schroy, on June 30th, 2006 |


After having the market for mortgage securitization virtually to themselves while Fannie Mae was in the regulatory doghouse, issuers of asset-backed securities again face fierce competition as government-sponsored enterprises returned with a vengeance to the market.
Q1 2006
By John Schroy, on June 20th, 2006 |


In Q1 2006, the excess of US imports over exports continued to provide dollars to the rest of the world, which were invested in the US bond market.
Although foreign central banks reduced flows into US treasuries and agencies after the high point of 2004, the shortfall has been more than covered by flows into bonds from foreign private sources. The driving force behind foreign purchases of US bonds is not so much related to interest rates as to worldwide neo-mercantilist impulses to favor exporters.
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