Mechanically, the extra liquidity has been finding its way into risky assets via the carry-trade.
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It fell with other risky assets during the recent recession, losing 23.5 percent in 2009.
Risky assets have already been pushed to price levels that now provide very weak prospective returns.
Then a stock market tumble in Shanghai precipitated a worldwide selloff of risky assets.
Lin recommends taking some money out of risky assets if one of these scenarios becomes likely.
They are selling risky assets such as stocks and bidding up the prices of safe assets.
Part of the hedge fund's strategy involved purchasing risky assets from other investment banks.
The Fed banks began buying risky assets on a large scale: longer-dated Treasury paper and mortgage securities.
If W were 35 and still in the work force, she could cope by owning risky assets.
Investors piled out of other so-called risky assets those that tend to fare worse during an economic downturn.
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Second, undo the effects of uncertainty on the portfolio side, and help recycle the funds towards risky assets.
As of June 30, they had, thanks to the fancy derivatives, a 105% long position in risky assets.
In addition it will no longer be possible to book at once the profit expected from holding risky assets.
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Often, investors feel obliged to invest in risky assets because money is so cheap, without an adequate assessment of risks.
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The dollar strengthened on Wednesday and the euro dropped, usually an indication that risky assets have fallen out of favor.
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We believe that a continued global sell-off in equities will provide an opportunity to buy risky assets at attractive valuations.
Applied Finance subtracts from this a "capital charge, " reflecting the return investors would expect to earn from similarly risky assets.
Investors will have to determine their preferences for re-balancing between safe and risky assets as part of their investment policy.
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Is it appropriate to have the same allocation to risky assets when you are 30 as when you are 70?
The first was that all risky assets were boosted by the same factors: low interest rates and healthy global growth.
Your currency is devalued, stocks and other risky assets will rise, and inflation will slowly, but surely start to creep in.
Monetary stimulus, the Chairman explained, comes from taking Treasuries and RMBS out of the market, effectively forcing investors into risky assets.
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Thus, not only PGMs but other commodities could suffer early in the year due to continued capital outflows from risky assets generally.
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Households no longer invest in risky assets, and companies shun financing them.
Instead, life companies bought risky assets, such as equity and property, intending to sell policies to firms in which they held stakes.
Yes, money is now flowing out of risky assets into safer assets.
Deleveraging of risky assets in our system is far from over, suggesting high volatility is a way of life for all of us.
Although they are now sitting on huge deposits, the banks are loth to use them to buy risky assets such as corporate bonds.
The embrace of risky assets drove investors out of U.S. Treasurys, which tumbled, pushing the yield on the benchmark 10-year note up to 1.958%.
SIVs allow a money manager to borrow money in the short term in order to invest in higher-yielding or more risky assets longer term.
FORBES: This is a transcript of the After Hours video report.
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