Term out: Difference between revisions
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To 'term out' liabilities - or funding - means | To 'term out' liabilities - or funding - means replacing shorter term liabilities with longer term ones. | ||
Revision as of 09:34, 13 November 2016
To 'term out' liabilities - or funding - means replacing shorter term liabilities with longer term ones.
In the funding context, this will generally have the consequence of increasing the stability of funding.
However, it is normally more expensive, because longer term funding is generally more costly than short term funding.
