Term out: Difference between revisions

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imported>Doug Williamson
(Update.)
imported>Doug Williamson
(Update.)
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In the funding context, this will generally have the consequence of increasing the stability of funding.
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.

Revision as of 09:35, 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 improve the stability of funding.

However, it is normally more expensive, because longer term funding is generally more costly than short term funding.


See also