The trade off for Berkshire shareholders is higher return
for less liquidity by having to hold on to the stock for many years.
For less liquidity but higher rates, go for intervals of one year or higher.
For private market investments, the change in mindset involves embracing a trade off — expected steady, predictable higher yields in exchange
for less liquidity.
Not exact matches
Marks arrived at more or
less the same definition of
liquidity as Hooper, writing that the way to think about
liquidity isn't to ask if there is a market
for an asset, but whether you can quickly sell that an asset without taking a huge loss on it.
Both the ability to discover
liquidity and the demand
for risk transformation services are becoming
less dependent on capital.
«We've been rallying on
liquidity for the last six quarters,» he said, «but I'm starting to see
liquidity drying up,» which suggests
less money may be flowing into the market.
The low
liquidity levels are caused by a combination of regulations, which make it
less attractive
for big banks to hold inventories of bonds
for dealing, and new forms of quick, computerised trading, which have the potential to move markets in times of stress.
HFT firms say their trading adds needed
liquidity and that such a tax would end up making the markets
less efficient and more expensive
for all investors.
In a sense, Uber and Airbnb vastly improved the
liquidity for rides and room and board by making these services more available
for less cost and higher quality.
but do places that accept non accredited investors like fundrise have
less liquidity for longer periods of time?
That means its high fees, though standard
for this space, are
less of a concern than
liquidity.
1) not at the top tax bracket yet, thus
less expensive to have taxable dollars; 2) before 35, generally significant expenses such as house purchase, engagement ring, wedding, etc.; 3) keep
liquidity for potential opportunities — «cash is king»; 4) use after - tax dollars to buy RE and rent it out
for another stream of passive income, which is generally not taxable due to depreciation — could be a retirement vehicle in itself.
Index futures, like the S&P 500 Index (NYSE: SPY), have become very popular as broader economic bets
for day traders given their high level of
liquidity and
less stock - specific risk.
Therefore, while cash generated from operations is our primary source of operating
liquidity and we believe that internally generated cash flows are sufficient to support day - to - day business operations, we use a variety of capital sources to fund our needs
for less predictable investment decisions such as acquisitions.
Even if part of this decline was driven by a heightened
liquidity premium the implication is the same: it indicates an increased demand
for highly liquid and safe assets which, in turn, implies
less aggregate nominal spending.
The longer the time frame of investment, the
less need
for liquidity as compared to investing with a short - term time horizon.
This has led banks to use far
less of their own capital in global markets, which, in turn, has reduced secondary market
liquidity for many securities and removed some of the more credit - worthy bank counterparties in these markets.
What has been
less discussed, however, are the proposed changes to the Bank of Canada Act that would ostensibly make it easier
for the Bank to deal with
liquidity crises.
Less liquidity means more natural price discovery, something many experts have warned has been missing
for too long.
The combination of low overnight ES balances and greater recourse to intra-day repos is a more efficient, and
less costly, approach to
liquidity management
for banks, compared with the situation in July with relatively high ES balances and low intra-day repos.
This pair has the most
liquidity during the Asian time zone along with
less volatility making it the suitable candidate
for the trading.
During American timings, these pairs will have the highest
liquidity and
less volatility which makes them the perfect candidate
for the trading, and it also helps the Option Robot to generate consistent results in those pairs during the American hours.
Smaller markets have
less liquidity, and therefore offer greater opportunity
for market - makers like Alex to profit.]
Given the growing scarcity of available collateral among bond dealers, a collapse in repo
liquidity, and increasing frequency of delivery failures, all of which is shorthand
for a bond market that is becoming
less liquid — it seems that QE has begun to create, rather than relieve, meaningful constraints.
Maybe it'll just increase trading costs, as
liquidity providers have to charge more to make up
for the
less transparent risks they face.
The key is patience and diligence with CEFs and knowing that
less than 2 % of the US population owns a CEF (vs. 40 %
for an open - end fund), 85 % of the shareholders
for CEFs are not institutional investors and only 7 of the 598 US listed CEFs trade more that $ 10M a day in
liquidity as of last Friday's close.
This can result in secondary market
liquidity being significantly
less for municipal bonds than bonds in the corporate bond market.
The longer into the future until you'll want to sell an investment to raise cash
for spending, the
less you need to think about
liquidity and volatility.
As a trade - off
for investing in
less well - traveled markets, international investors should recognize that
liquidity is often lower in international markets, particularly emerging markets.
Shares are selling
for less than cash / share and the company has enough
liquidity to continue on its current path
for another 3 years before it needs additional financing.
If you plan on selling the property, paying off the loan in a short time (
less than 4 years), or have limited funds
for closing and want to maintain some post-closing
liquidity then it may make sense to pay a higher interest rate in exchange
for a lender credit and lower closing costs.
Thus in my trading I looked at income replacement, adjusted
for quality, maturity,
liquidity, optionality, premium / discount, and a wide number of
lesser variables.
Alternatives might make sense at market peaks, or providing
liquidity in distressed situations, but
for the most part they are as saturated now as public market investments, but with more expenses and
less liquidity.
[3] Moreover, the anticipation of needing to make a payment
for which a compensating tax benefit payment by Pride may not arise until a future date could theoretically serve as a catalyst to dispose of
less desirable rigs to provide interim
liquidity.
Likewise, in sector or strategy indices with fewer stocks and larger weights on each stock, increasing share counts to adjust
for less liquid classes could affect
liquidity.
For many
less creditworthy homeowners, home equity loans are likely to remain the most economical way to gain
liquidity.
As such it is used
less often than the main tool and when used it is
for purposes other than the management of
liquidity.
An important point to note here is that Bitcoin Cash exchanges will be
for - profit businesses, so if a sustainable revenue model
for creating
liquidity on exchanges doesn't exist, Bitcoin Cash's future becomes
less certain.
This means there is one
less hurdle
for liquidity in new markets and there is also a natural incentive to create more
liquidity.
Global bitcoin exchanges emerge as bitcoin clearing houses -
less retail - oriented and more wholesale - oriented - providing deep
liquidity and sophisticated offerings
for the local market participants.
Although that dynamic may be worrisome to some of the smaller or
less established REITs, it is important to note that
liquidity for the sector as a whole is the best that it has been in years.
«I think the reason
for that paradox is there is just
less liquidity in the medical office sector, because that investment market is still in the early stages of development and you have [fewer] investors,» Putnam says.
«So
for any given property, there is an increment of
lesser liquidity.»
But most homeowners with mortgages who place their savings in bank deposits or money market funds paying
less than 1 percent, rather than earning 3 to 6 percent by paying down their mortgage, do it
for reasons other than a need
for liquidity.