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. | ||
Revision as of 11:41, 16 November 2016
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.
