Sentences with phrase «illiquid assets liquid»

Extracting equity from your home is a means of making this illiquid asset liquid and usable.

Not exact matches

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.
The proposal could also lead to early director departures, as directors seek to convert illiquid shares and options into more liquid assets (after the one - to two - year waiting period).
For me wealth is a measure of everything, liquid and illiquid assets.
If liquid assets run out, which illiquid assets will need to be realized and how long will they last for?
That's a cost of putting illiquid assets into a liquid fund.
Covers the following topics: Money, as distinct from «income» and «wealth» Functions of money Characteristics of money Credit cards, Debit cards, Electronic money and the concept of liquidity (whether assets are liquid or illiquid) Commodity money The barter system and the problem of double coincidence of wants Contains easily digestible points / explanations with appropriate amount of on - screen text that makes note taking easy for students of all abilities, whether native or non-native users of English.
I could add a fourth, willingness of institutions to invest in weakly funded structures, like hedge funds, and anything else with liquid liabilities and illiquid assets, but that is for another day.
Net capital: The net worth of the firm less an adjustment for illiquid assets (i.e., the net liquid assets of the firm).
Risk that the Feds should care about is the toxic mix of illiquid assets funded by liquid liabilities; long liability structures r safe $ $
There should be an expected premium return for illiquid assets, or else, invest in liquid risk assets, and wait for the day where there is a return advantage to illiquidity.
Most financial company failures are due to illiquidity, which usually takes the form of too many illiquid assets and liquid liabilities.
Crises happen when there is a call for cash, and it can not be paid because there are not enough liquid assets to make payment, and illiquid assets are under stress, such that one would not want to sell them.
Assets are both your liquid assets, such as cash in your savings account, stocks and bonds, and illiquid assets, such as your house, a partnership in a business, and your pensionAssets are both your liquid assets, such as cash in your savings account, stocks and bonds, and illiquid assets, such as your house, a partnership in a business, and your pensionassets, such as cash in your savings account, stocks and bonds, and illiquid assets, such as your house, a partnership in a business, and your pensionassets, such as your house, a partnership in a business, and your pension plan.
LTCM bought the higher - yielding illiquid assets, and hedged them with more - liquid liabilities.
Most die from the deadly combo of illiquid assets and liquid liabilities.
For those that haven't read me much, the deadly trio of too much leverage, illiquid assets, and liquid liabilities is what causes most corporate defaults of financial companies, not lesser issues like mark - to - market accounting.
Illiquid assets that are similar to a liquid asset usually yield more, because the cost of trading is much higher, and the possibility of being trapped is higher also.
You estimate the duration of the crisis, and if it is longer than your liquid assets can finance, you sell some of your best illiquid assets now, and play for time.
The difficulty that most of the complaining companies had was a mix of liquid liabilities requiring prompt payment, and relatively illiquid assets that would be difficult to sell.
It was the classic asset - liability mismatch — long illiquid assets financed by short liquid liabilities.
Liquid liabilities, and illiquid assets.
Financial companies owning illiquid assets financed by short, liquid liabilities.
You may not notice this in liquid stocks, but in illiquid stocks and other illiquid assets, this is definitely a factor.
Financing illiquid assets with liquid liabilities is unstable, and begs for bankruptcy at the first significant loss of confidence.
But these days, the so - called barbells that investors hold over their financial shoulders can be a mix of different assets entirely: index funds and active funds, liquid and illiquid investments, or low - cost mutual funds and high - cost hedge funds.
The lady has it right — Illiquid assets and liquid liabilities!
Trying to make liquid markets out of assets that are naturally illiquid is a fool's bargain.
Or, to put it another way, they have borrowed in liquid form and invested the proceeds in illiquid assets.
The biggest benefit is taking something that was perceived to be illiquid and of limited value, and turning it into a liquid asset that may have an even greater value in the hands of an investor than the original policy owner.
Make illiquid markets liquid by digitizing assets to launch new markets and reduce operational costs with next - generation blockchain technology.
A reverse mortgage can help retirees convert an illiquid asset — a house — into a liquid one that can help supplement retirement income while allowing them to remain in the home.
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