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 pension
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 pension
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 pension
assets, 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.