Hello,
The idea of the ratio is easy enough, but when I am looking at a list of what we are "funding" it gets really confusing thinking about whether these are assets or liabilites. If we are long a long-term bond, we obviously have to fund that purchase, but we also need liquidity to pay off our liabilities. Is there an easy way to think about this?
Thanks!
Shannon
The idea of the ratio is easy enough, but when I am looking at a list of what we are "funding" it gets really confusing thinking about whether these are assets or liabilites. If we are long a long-term bond, we obviously have to fund that purchase, but we also need liquidity to pay off our liabilities. Is there an easy way to think about this?
Thanks!
Shannon