Wednesday, September 17, 2008

Tomato, Tomahto?

From macroblog (the Atlanta Fed's excellent blog on issues of the day, complete with useful explanation of industry-type terms like "LIBOR - OIS spread")

"One of the features of the U.S. financial system is that the debt of financial institutions tends to be weighted toward long-term obligations while the financing has been predominately from short-term borrowing."

Macroblog refers to borrowing short, lending long as a "feature," but I've always heard it described as a "strategy."

Of course, once everyone adopts a strategy it can become a feature, and that's only a problem if the strategy is bad...not that this one is.

No comments: