The relatively lower yields and
high liquidity of savings accounts make them ideal for short term savings or as a place to store an emergency fund.
Additionally, retail investors are keen on participating in ICOs, and open - source projects can benefit from the fundraising method too.Similarly, investors can benefit from
the high liquidity of the tokens (sold during ICOs), in addition to being able to sell them through cryptocurrency exchanges or over-the-counter (OTC) transactions, which would allow the investors to transfer the tokens easily without the authorization of the token issuer (the organization launching the ICO).
Low Japanese interest rates and
the high liquidity of the yen has served to make curry trade — where an investor borrows money in one country (Japan) and invest them in another — a lucrative endeavor with a vast potential upside.
Viktor:
Higher liquidity of our investments sets us apart from a number of hedge funds on the cryptocurrency market.
It will most likely result in
higher liquidity of the company in the stock market in terms of the volume of shares that will trade on any given day, which investors like to see.»
Not exact matches
When we're investing in private funds, we're looking for something that has a
high enough return to pay us for the
higher risk and lack
of liquidity.
He points to
high levels
of global debt, low
liquidity in markets, political events affecting trade and structural imbalances in some emerging economies.
«I remember in the very early days
of Alpha, when we were struggling a little bit, we looked at how we could involve more
high - frequency traders because they were very good at igniting
liquidity,» he says.
«Is it that lower
liquidity is causing volatility to be
higher for any given amount
of trading activity?
When we talk about bond market
liquidity it's important to understand that there are lots
of different «pools» out there such as
high yield bonds, munis, government bonds, etc..
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 most people think about portfolio diversification in terms
of high - risk and low - risk investments, it also has to do with
liquidity.
«We believe it critical for a listing exchange to ensure a
high - quality displayed quote to reduce the cost
of capital and share price volatility for its issuers, and in the absence
of broader market structure reform, exchange - paid quoting incentives are a necessary mechanism in a highly fragmented US marketplace to support
liquidity for listed companies,» Cunningham said in a letter to clients emailed to Business Insider.
Beyond the requirements that
liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility
of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility
of realizing substantial capital gains on
high - grade bonds when rates fall.
He said BlackRock is not overly concerned about
liquidity in the treasuries market, but is nonetheless keeping on top
of everything that's going on — things like the emergence
of high - frequency trading in the interdealer market.
In this regard, our surveillance has been closely monitoring for any signs
of liquidity strains associated with the recent increases in spreads for
high - yield corporate bonds, as well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing
of Third Avenue Management's Focused Credit Fund last December.
«We now have
high conviction that
liquidity dynamics are changing, that markets are finally becoming more aware
of that reality.»
And since the Tech Bubble, we have seen unprecedented amounts
of liquidity funneled into the capital markets, and highly - levered, credit - sensitive, smaller - cap and lower - quality stocks and sectors outperformed their more liquid, larger - cap,
higher - quality counterparts.
A recent WSJ article, «Venture - Capital Firms Draw a Rush
of New Money,» highlights that VC firms are raising new funds from LPs at the
highest rate in 15 years, even though cash
liquidity is sitting at a seven - year low.
Benefits — Each family / real estate investor keeps average $ 600 / mo for 2 yrs, real estate in all major metropolitans will have a traded price, increase buying power
of low income
high credit citizens, stimulate real estate investment by making it easier for investors to cash flow a rental property, reduce home inventory, the increase home values and
liquidity provides incentive to put the $ X trillion in capital currently on the sidelines back to work and mortgage prepayments will increase capital availability.
One very stylized fact is that corporate bid / ask spreads aren't that
high, though they are
higher than pre-crisis levels; instead the increased cost
of liquidity seems to be passed along in just less trading rather than more expensive trading:
Poon said the Fed's gradual withdrawal
of liquidity is having a global impact, causing
higher market volatility in both the U.S. and Hong Kong.
Still, SHYG suffers from the same general lack
of liquidity for block trades common to most
high yield ETFs.
so now the issue is whether the bond market (or macro hedge funds) eased too much thinking the Fed would choke off
liquidity and now is staring at still a weaker dollar and
high commodity prices indicating an elevated level
of excess
liquidity.
Not that investors seem to worry too much for now: Korean stocks hit a six - year
high two days ago, riding a wave
of global
liquidity created by central banks.
An article in today's Wall Street Journal warns
of the
liquidity risk inherent in
high - yield bond ETFs.
His
high liquidity position went against the norms
of investment management at that time, and he lost clients in the process.
The era
of cheap or zero - interest money that led to a wall
of liquidity chasing
high yields and assets — equities, bonds, currencies, and commodities — in emerging markets is drawing to a close.
We get into some fixed income wonkery —
Liquidity, supply, safety, demand, central bank purchases, and the dearth
of high quality assets all are part
of our conversation.
I believe
liquidity is very important and I keep a
high level
of cash at all times.
CEX.IO is the Bitcoin trading platform that combines the crucial features: enhanced security, variety
of options and
high market
liquidity.
That means its
high fees, though standard for this space, are less
of a concern than
liquidity.
It is also worth noting that austerity has constricted both the supply and
liquidity of bonds, making them scarce in a time
of high demand.
Christina Padgett, head
of leveraged finance at Moody's Investors Service, said
liquidity concerns are not a major problem for the
high - yield portion
of the market now, but there are challenges for the future.
As a result, many
of the institutions and instruments have been able to employ
higher market, credit and
liquidity risks, and do not have capital requirements commensurate with those risks.
With the
high number
of LPs seeking near - term
liquidity, it would have been difficult to manage one - off sales
of LP stakes through referrals.
The investment objective
of State Street Institutional Treasury Money Market Fund is to seek a
high level
of current income consistent with preserving principal and
liquidity and the maintenance
of a stable $ 1.00 per share net asset value («NAV»).
The Money Market Fund is designed for investors who desire safety
of capital with a
high degree
of liquidity.
But as we saw in the 2010 flash crash,
liquidity can vanish quickly when
high - frequency trading programs sniff a bit
of trouble.
One caveat you'll find on most sites is something like this: «An investment involves a
high degree
of risk including fluctuating values
of real property, lack
of liquidity, environmental concerns, legal and regulatory risks, and other risks.»
It's not as sexy to brag about, but a true benchmark will always be that they are able to meet their short - term
liquidity needs and have a
high probability
of meeting their long - term goals and mission as an organization.
That means keeping enough
liquidity in cash equivalents and
high quality bonds to survive periods
of below average performance and bear markets.
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.
Each month, Palhares and Richardson sorted corporate bonds into quintiles based on each
liquidity measure and computed the return
of a long / short portfolio that buys the least liquid bonds (i.e., smaller issue sizes,
higher bid / ask spreads, lower trading volume,
higher price impact or
higher frequency
of zero - trading days) and sells the most liquid bonds (i.e., larger issue sizes, smaller bid / ask spreads,
higher trading volume, lower price impact or lower frequency
of zero - trading days).
The average investment - grade (
high - yield) bond trades on less than 32 % (36 %)
of days over the prior six months —
liquidity in corporate bonds was considerably lower than in traditional listed equity markets.
Blue chip stocks, like Apple Inc. (NASDAQ: AAPL) or Google Inc. (NASDAQ: GOOG), have become very popular among day traders given the
high level
of liquidity and event - driven volatility.
These will either be severely restricted or prohibited:
Higher priced, more complex products that have issues
of liquidity and lack
of transparency, such as non-publicly traded REITs, variable annuities, proprietary products or limited partnerships
of certain types.
The lack
of liquidity and
higher leveraging
of investments via crowdfunding platforms relative to REITs makes them much riskier, yet their incrementally
higher promised returns and incrementally lower implied correlations with other asset classes don't seem to compensate for the added downsides.
3) Persisting external pressures in the form
of low dollar
liquidity and declining net international reserves, despite
higher oil prices and a decreasing current account deficit
By raising numerous primary rounds
of growth financing and secondary rounds providing for the
liquidity of certain stakeholders, the
highest performing technology startups are effectively «going public privately.»