investisseur à passif long

English translation: long-term bondholders/fixed-income investors

16:07 Nov 23, 2019
French to English translations [PRO]
Bus/Financial - Investment / Securities / Insurance
French term or phrase: investisseur à passif long
Context: Ces obligations ont un attrait pour les investisseurs à passif long: plus de la moitié de l’encours a une maturité supérieure à 10 ans

This is from an insurance company discussing investment strategies.

Is this (les investisseurs à passif long) just a complicated way of saying 'long-term investors'? Or does the 'passif' mean they are 'passive long-term investors'? Or is it even something to do with liabilities?

Thanks
L
lizh
Local time: 23:45
English translation:long-term bondholders/fixed-income investors
Explanation:
IF the investors in question are the insurance firms themselves, then I think passif refers to bonds, which are the main instrument insurers invest in.

Quora is not the most solid of refs, but see:
https://www.quora.com/What-kind-of-investments-do-insurance-...
https://www.quora.com/Why-do-insurers-tend-to-have-a-bigger-...

And though not exactly on topic, this Investopedia article mentions that insurance firms mostly invest in bonds/fixed-income:
https://www.investopedia.com/articles/active-trading/120914/...
Selected response from:

Wolf Draeger
South Africa
Local time: 01:45
Grading comment
4 KudoZ points were awarded for this answer



Summary of answers provided
3 +1investor with long-term liabilities
Ph_B (X)
5 -1investors with long-term sources of funding.
Daryo
4 -1long term indebted investor
Francois Boye
3 -2long-term bondholders/fixed-income investors
Wolf Draeger
3 -2long-term debt investor
Ana Vozone


Discussion entries: 7





  

Answers


1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
long term indebted investor


Explanation:
Debt is a liability; so long term debt = long term liability

Francois Boye
United States
Local time: 18:45
Native speaker of: Native in FrenchFrench
PRO pts in category: 25

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: "indebted investors" = investors drowning in their own debts - NOT "someone investing in other people's debts"//also "indebted investors" (those really "indebted") are certainly not going to rush to advertise the fact!
12 hrs
  -> 'passif' means that you owe money to sb else!
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2 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): -2
long-term debt investor


Explanation:
I think it means investors who invest in long-term debt.

https://www.google.pt/search?sxsrf=ACYBGNRw7BDndVSN9ApMWKnAL...

Example sentence(s):
  • Indeed, as a part of the TLAC rule, Forum members are required to publicly disclose to long-term debt investors that they may bear losses i
  • Some long-term debt investors are shifting to equity schemes for better and tax-efficient returns.
Ana Vozone
Local time: 23:45
Works in field
Native speaker of: Native in PortuguesePortuguese
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: it's about the sources of funding, NOT how the funds are invested // you can disagree to your heart's content / till the cows come home / .... it WON'T change what is "les passifs" nor whose "passifs" the ST is about.
11 hrs
  -> I disagree with you. The text syas that the bonds are an attractive investment for investors looking to invest on long term debt vs. investing on short term debt. I don't see how you cannot see this...

disagree  Steve Robbie: "à passif long" means the investors HAVE long-term LIABILITIES, not that they are keen on investing in long-term debt (which would represent an asset/actif in their balance sheets). The bonds give steady income that can be matched against LT liabilities
1 day 42 mins
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4 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): -2
long-term bondholders/fixed-income investors


Explanation:
IF the investors in question are the insurance firms themselves, then I think passif refers to bonds, which are the main instrument insurers invest in.

Quora is not the most solid of refs, but see:
https://www.quora.com/What-kind-of-investments-do-insurance-...
https://www.quora.com/Why-do-insurers-tend-to-have-a-bigger-...

And though not exactly on topic, this Investopedia article mentions that insurance firms mostly invest in bonds/fixed-income:
https://www.investopedia.com/articles/active-trading/120914/...


    Reference: http://en.wikipedia.org/wiki/Bond_(finance)
Wolf Draeger
South Africa
Local time: 01:45
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: it's about the sources of funding, NOT how the funds are invested.
9 hrs

disagree  Steve Robbie: If the insurance companies are the investors, then the bonds will be investments on their balance sheets. This means that they (the bonds) will be actif, not passif.
22 hrs
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18 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
investor with long-term liabilities


Explanation:

About insurers as investors with long-term liabilities, and the reasons why:

"insurers can invest in long-term assets to match their long-term liabilities"
https://www.abi.org.uk/data-and-resources/tools-and-resource...

"financing long-term investment can be beneficial for inter alia life insurers (as well as pension funds) looking to match their long term liabilities with long duration assets"
http://www.oecd.org/investment/Evolution-insurer-strategies-...

"but for the purposes of this paper [Investment risk for long term investors] , the subset of investors considered will span insurers with long term liabilities"
https://www.actuaries.org.uk/system/files/field/document/Inv...

Ph_B (X)
France
Local time: 00:45
Native speaker of: French

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: your explanations have nothing to do with this ST - What is relevant HERE: the funding of any potential investor (from wherever - insurance premiums, pension contributions, from any long term loan ...) will be steadily available in a long term.
9 hrs

agree  GILOU
19 hrs

agree  Michael Confais
2 days 1 hr
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14 hrs   confidence: Answerer confidence 5/5 peer agreement (net): -1
investors with long-term sources of funding.


Explanation:
Ces obligations ont un attrait pour les investisseurs à passif long: plus de la moitié de l’encours a une maturité supérieure à 10 ans
=>
these obligations can be an attractive investment (/of interest) for those who have some long-term sources of funding

"passifs" for a business is the source of funding - where the capital comes from.

Les passifs en comptabilité
Un passif peut être défini comme un élément du patrimoine ayant une valeur économique négative pour l’entité, c’est-à-dire une obligation de l’entité à l’égard d’un tiers dont il est probable ou certain qu’elle provoquera une sortie des ressources au bénéfice de ce tiers, sans contrepartie au moins équivalente attendue de celui-ci.

Les passifs figurent dans la partie du droite du bilan, ils se composent des principaux éléments suivants :

Capitaux propres (capital, réserves…),
Dettes (financières, fournisseurs, fiscales, sociales…),
Produits constatés d’avance.
Pour aller plus loin : le passif du bilan comptable.
https://www.compta-facile.com/actifs-passifs-produits-et-cha...



Définition du passif du bilan comptable
Le passif du bilan est un élément du patrimoine ayant une valeur économique négative pour l’entité. Il s’agit d’une obligation de l’entité à l’égard d’un tiers dont il est probable ou certain qu’elle provoquera une sortie des ressources au bénéfice de ce tiers, sans contrepartie au moins équivalente.

Le passif occupe la partie droite du tableau de bilan. Il est constitué des capitaux propres et du passif externe. Chaque partie est détaillée ci-dessous ...
https://www.compta-facile.com/le-passif-du-bilan-comptable/

The rationale: you don't make long term investments with money borrowed on short-term arrangements - basic rule that sunk few banks ...

or put it another way

for those who know for sure that the money they have available will still be available to them for years to some. investing that money in long-term bonds can be of interest.


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Note added at 1 day 5 hrs (2019-11-24 21:45:01 GMT)
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C) Pourquoi des dettes circulantes peuvent-elles constituer une ressource stable ?

 Délais de paiement consentis aux clients + avances consenties par les fournisseurs => fonds permanent de dettes constituant une ressource permanente
 Besoins de financement stables = Actifs longs + Fonds permanents d’actifs courts renouvelés
Ressources de financement stables = Passifs longs + Fonds permanent de passifs courts renouvelés


http://coursedc.free.fr/4eme Annee/4A Finance/Diagnostic fin... page 2

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Note added at 1 day 21 hrs (2019-11-25 13:29:08 GMT)
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When you have money available to invest in something, that money becomes a "source of funding", no matter if that money was borrowed (through ANY type of contract) or your own money.



Daryo
United Kingdom
Local time: 23:45
Native speaker of: Native in SerbianSerbian, Native in FrenchFrench
PRO pts in category: 11

Peer comments on this answer (and responses from the answerer)
disagree  Francois Boye: passif = liabilities in French accounting
10 hrs
  -> So?

agree  Steve Robbie: I have deleted my previous comment (to which you replied below) and changed this comment from neutral to "agree".
13 hrs
  -> Thanks!

disagree  GILOU: liabilities
23 hrs
  -> the usual "constructive contribution" ...
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