Auction Rate Securities and How the Failure of One Market Can Snowball Into Other Markets

Posted by on July 31st, 2008 at 12:20pm

सर�ार� न��र� | Indian Government Jobs | Employment News | Admission Notifications | Govt Jobs wrote an interesting post today on
Here’s a quick excerpt
How can a failure in one market snowball and create failures in others?  Here’s a simplified example, in the case of auction rate securities (ARS). Much has been written this year about the sudden illiquidity of the ARS market.  ARS are a product often used by companies to invest their excess cash.  The inability to properly value such securities led to problems because they need to be properly valued on a company’s balance sheet for financial reporting.  Additionally, when that cash was neede

Read the rest of this great post here

Under Uncategorized