gradually declining earnings from the bank's
shrinking asset base, leads
Recent memories of
shrinking asset values may damp consumers' motivation to ramp up their expenditures immediately.
The momentum generated in 2007-08 with new fund launches was severely undermined with weak fund performance and a
shrinking asset base.
So this issue of The Business Owner hits even harder: how to reduce costs, cut spending, deal with adversity, change your viewpoints, find the silver lining, take advantage of
shrinking asset values and, yes, understand and face bankruptcy:
Given the hangover of outstanding debt and recent memories of
shrinking asset values, consumers may not be motivated to ramp up their expenditures.
The depreciation has resulted in a
shrinking asset coverage ratio and the need for Allied to seek a covenant amendment from its private unsecured term debt holders due to a decline in its tangible net worth.
Its
shrinking asset base has also weighed, as the bank has recently encourage guarantees and other off-balance products, rather than direct lending.
Losses from 1997 to 2005 also stemmed from its low-yielding and
shrinking asset base.
Holland Cooke, a radio con-sultant from Rhode Island, said there are two trends contributing to this development: I luge radio corporations are shouldering enormous debt, leading to
shrinking assets in small-and medium-market stations, and younger audiences are losing interest in shows patterned after leading talk show hosts.
Unlike the leverage ratio, where the only remedies are increasing capital or
shrinking assets, credit unions can also manage their balance sheet mix (risk) to remain well capitalized under the risk-based requirement.
Given their
shrinking assets in this climate of austerity, the least they can pledge is moral support.
Baby Boomers are increasingly becoming aware of the risk of
shrinking assets.
