Structured products offering capital protection and enhanced yield, to compensate for low money market yields
, are enjoying an under-writing bull market.
Over the course of 2010, money market yields
declined 38% to 0.
Institutional profit-taking continued on economic uncertainty, security concerns in the country and rise in money market yields
Something had to be done unless the life companies wanted to be left with only term insurance to sell in circumstances where customers were creating their own "permanent life insurance" by combining the high money market yields
with term policies.
First, low short interest rates and bond yields have encouraged cheap borrowing and enabled private equity specialists to leverage themselves up and to purchase companies on valuations that exploit the difference between money market yields
and earnings yields.
In the City, where short-term money market yields
moved sharply higher, the debate centred largely on the timing of any upward move.
Under the current low interest-rate environment, managing 10 billion yen overnight in the call money market yields
only 200 yen, according to the officials.
The sheer weight of liquidity pumped into stocks, low money market yields
, share buy-backs, corporate restructuring, mega-mergers and strong earnings are underpinning equities.
In the intermediate term, M2 velocity--nominal income divided by the stock of M2--tended to vary directly with the difference between money market yields
and the return on M2 assets--that is, with its short-term opportunity cost.
The first generation product to obtain acceptance was adjustable rate preferred stock, a security with a dividend rate that is adjusted quarterly to reflect changes in money market yields
Tired of money market yields
but afraid to relinquish security?
taking into account two years of forgone compensation, tuition and required fees); adjusted for cost of living expenses; and discounted their earnings gains using a rate tied to money market yields