Word: riskless
(lookup in dictionary)
(lookup stats)
Dates: during 1990-1999
Sort By: most recent first
(reverse)
...take more chances on lending? One reason is that the current interest-rate structure has provided them with a rare opportunity to make a sure-thing return, which banks are exploiting. They can get money from depositors at only 3% interest, then turn around and invest it in riskless medium-term Treasury securities that earn about 6%. The three-point spread is almost pure profit, with few administrative costs. In the past 12 months, lenders have increased their holdings of Treasury bills and notes 23%, to $630 billion, while their portfolio of business loans dropped 4%, to $594 billion...