Term out: Difference between revisions
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''Funding''. | |||
To 'term out' liabilities - or funding - means replacing shorter term liabilities with longer term ones. | To 'term out' liabilities - or funding - means replacing shorter term liabilities with longer term ones. | ||
In the funding context, this will generally | In the funding context, this will generally improve the stability of funding. | ||
However, it is normally more expensive, because longer term funding is generally more costly than short term funding. | However, it is normally more expensive, because longer term funding is generally more costly than short term funding. | ||
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== See also == | == See also == | ||
* [[Funding]] | * [[Funding]] | ||
* [[Liquidity]] | |||
* [[Longer term]] | |||
* [[Short term]] | |||
* [[Stability]] | * [[Stability]] | ||
* [[Term]] | * [[Term]] | ||
[[Category:The_business_context]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 14:09, 6 July 2022
Funding.
To 'term out' liabilities - or funding - means replacing shorter term liabilities with longer term ones.
In the funding context, this will generally improve the stability of funding.
However, it is normally more expensive, because longer term funding is generally more costly than short term funding.
