Sentences with phrase «became illiquid»

When these loans became illiquid, and the firm had no ability to pay back its creditors, Lehman Brothers experienced a credit crunch; it could no longer cheaply raise cash via debt issuance, and issuing stock under such conditions led to both dilution of shares and negative sentiment, which caused its share price to fall.

As many firms learned in the depths of the crisis, what was once thought to be a liquid asset quickly became illiquid as markets seized up and normal outlets for converting assets to cash evaporated.

On her blog site, before Western Liquid became illiquid, Rika Elliott once posted: «We also have had great success investing with Steve Friedland and have referred many other investors to him.

International investments, particularly investments in emerging markets, may carry risks associated with potentially less stable economies or governments (such as the risk of seizure by a foreign government, the imposition of currency or other restrictions, or high levels of inflation or deflation), and may be or become illiquid.

These assets can quickly become illiquid, forcing into insolvency borrowers who needs to roll debt.

@MichaelKj örling the Greek bond market didn't «freeze up» anyone who bought / is buying greek bonds can easily go to the market and sell them... But yes in theory any market can become illiquid.

The danger of paying off a mortgage early is that the money becomes illiquid, tied up in the house.

A manager under pressure to sell a million dollars» worth of corporate bonds might well find that there's only a market for two - thirds of that amount, the remaining third could swiftly become illiquid — that is, unmarketable — securities.

When stocks become illiquid, their prices fall further.

International investments, particularly investments in emerging markets, may carry risks associated with potentially less stable economies or governments (such as the risk of seizure by a foreign government, the imposition of currency or other restrictions, or high levels of inflation or deflation), and may be or become illiquid.

Not exact matches

The asymmetry of prospective rate moves in different parts of the curve with short rates at the zero lower bound, explicit forward guidance about future policy decisions and massive asset purchase programs may result in a higher likelihood of one - sided markets, which may in turn impair liquidity, or at least lead one to conclude from liquidity indicators that markets have become more illiquid.

While the bond market in general has become relatively illiquid, the corporate junk bond market is now largely trading in «step function» prices for anything larger than «one - sies and two - sies» ($ 1 to $ 2 million bond trades).

In some ways, my rookie errors with small cap stocks helped me become a very good illiquid bond trader.

In some ways, my rookie errors with small cap stocks helped me become a very good illiquid bond trader.

An investment like an Options contract could become completely illiquid, meaning that there is literally no one who would like to buy a contract that you want to sell.

The impact I am more concerned with is in the concentration of assets into less and less differentiated products and the fact that ETFs have become a liquidity provider (when flows are positive) in areas of the market that are illiquid.

Because of potential buyers» inability to obtain financing due to the credit crunch, FRT may see its assets become more and more illiquid - a lack of lending creates a lack of able buyers, which makes it more difficult for FRT to sell its properties.

«The ETF can't be more liquid than the underlying, and we know the underlying can become highly illiquid.»

You might also find that insolvency becomes a very personal matter, as prior capital providers who know the business better than others, are invited to «prepackaged reorganizations» when the business is illiquid or insolvent.

Generally fund managers shy away or simply can't invest in liquidations as 1) the company falls outside their defined investment universe, or 2) the shares are too illiquid (especially if the company delists), or 3) the timeframe is too unclear (often liquidations take 3 years or more), or the market cap becomes too small, etc..

The portfolio will also become a little more biased towards illiquid strategies — but PE will remain a minor allocation and, as I said, I can't imagine prime Swiss investment property being too hard to sell..!

Last week's sterling flash crash can be partly blamed on an illiquid time zone, but it's still a stark reminder how fragile markets are becoming, as banks (& in turn, hedge funds) have been forced to radically scale back their trading capacity & risk appetite.

Illiquid securities carry higher risks than liquid ones, which becomes especially true during times of market turmoil when the ratio of buyers to sellers may be thrown out of balance.

Poor spreads are also generally related to a lack of liquidity, and illiquid assets are usually the first to become heavily disconnected from the underlying in cases where the authorized participants (APs) face issues.

Almost any illiquid asset today lends itself well to moving onto the blockchain and becoming tokenized...

12 % return, less 2 % fees, followed by taxes as ordinary income suddenly become a very ordinary 6 %, and a pretty illiquid investment at that.