Reuters  Jun 24  Comment 
Telekom Austria's free float has to be increased towards the end of the year under the terms of a syndicate contract with its parent company America Movil, the head of...
Financial Times  Jun 21  Comment 
Spanish telecoms group opens talks with banks about IPO process
TechCrunch  Jun 20  Comment 
 The story goes that last week, a Tesla Model S drove through a flooded tunnel in Kazakhstan. It’s not clear in the video below if the car was actually floating, but that didn’t stop Elon Musk from taking to Twitter to turn the video into a...
The Hindu Business Line  Jun 15  Comment 
The open-ended plan will focus on mid-cap stocks
The Australian  Jun 7  Comment 
The new REIT will hold a collection of assets with a weighted average lease expiry of more than 12 years.
Financial Times  May 30  Comment 
Peers see value in larger public equity pool as fleet expands
The Australian  May 29  Comment 
Online retailer Kogan is to boost its boardroom ranks ahead of its mooted sharemarket float later this year.
The Australian  May 26  Comment 
The debtor finance business’ valuation range equates to 14.5 to 17.9 times forecast annual net profit.
The Economic Times  May 18  Comment 
Other aspects of Net neutrality like framework for Internet-based calls, messaging, restricting speed on the basis of content or paid preferences remained out of the ambit too.
The Hindu Business Line  May 16  Comment 
Capital Float, a leading online lender for small businesses, has raised about ₹170 crore ($25 million) in a Series B round led by Creation Investments. Existing investors Aspada, Sequoia India and SAI...


The float refers to profits earned by a financial institution on assets that do not belong to that institution, but are held in custody for a client or other purpose. The float is an important source of profitability in a number of industries, such as:

  • Retail banking: In the case of retail banking, customers' checking accounts often earn little or no interest. However, the bank can collectively invest the money its customers have deposited in higher-yielding investments such as mortgages. The bank then earns the difference between the interest paid on the mortgage and the interest paid to customers with deposits in checking accounts.
  • Insurance: The float refers to the time period between when premiums are collected and claims paid out. During this time, insurers invest the premiums and generate returns. Legendary investor Warren Buffett of Berkshire Hathaway (BRK) was originally attracted to the insurance business since he could use low-cost float to earn higher returns on his successful investments.
  • Retail Brokerage: In recent years, stock brokerage firms (particularly E*TRADE Financial (ETFC)) have made money by investing cash left in client trading accounts and earning a float on these assets.

===Ways that financial institutions earn , interest rates rise when loans are longer-term, to compensate the lender for tying up money and making it inaccessible (this difference in interest rates is known as the Yield Curve. For example, a savings account that allows you to withdraw money at any time would pay a small interest rate, but a CD that leaves you unable to access your money for a period of months or years would pay a higher rate. While an individual bank customer might add or withdraw money unpredictably, the bank as a whole can generally count on having stable deposits across all its customers. This allows the bank to pay short-term interest on checking accounts, but then earn higher, long-term interest on these deposits by lending it out for long-term loans (such as mortgages, which typically last 30 years).

  • Assuming risk. By pursuing riskier investments, a financial institution can earn greater returns on assets on deposit.
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