Sentences with phrase «illiquid because»

People with higher credit utilization are illiquid because they have already tapped into most of the credit they have available.
The mortgages are illiquid because they are unique, with a lot of data.
Some securities may be illiquid because of legal restrictions, the nature of the investment, or certain other features such as guarantees or a lack of buyers interested in the particular security or market.
In this context, we are suggesting they are illiquid because they can not be currently sold for what they are truly worth based on fundamentals.

Not exact matches

Traders said relatively illiquid markets because of holidays across much of Europe and parts of Asia had exacerbated moves on Tuesday.
And that, importantly, would make it a worse investment on average than the stock market because PE is illiquid.
He modified the original Fama - French five - factor model to account for research finding that, because there is no real - time market price for illiquid private assets, returns are appraisal - based and subject to manager judgment.
Level 3 assets are generally illiquid investments that are difficult to value, both because there is no easily observable market price (level 1), nor is there a reliable pricing model (level 2).
The Fed's sought out hedging it's block and it's a problem now because the Fed is now illiquid.
Arbitrage stuff is complicated when it comes to illiquid versus liquid stocks — especially today, because many people doing this are using borrowed money and expecting a quick timetable.
As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and sell illiquid securities because of the difficulty of trading, and the problem of moving the market away from you with a large order.
And, because private equity is illiquid, «you only do it if you can expect outsized returns.»
Because these investments are highly illiquid, they are a strong candidate for IRA accounts that you won't withdraw from until retirement.
As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and sell illiquid securities because of the difficulty of trading, and the problem of moving the market away from you with a large order.
Adding to the difficulty is that it is generally difficult to price illiquid assets, because they don't trade often.
There are demands for cash payment, and the payments can't be made because the entities have short liabilities requiring immediate payment, and long illiquid...
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.
Illiquid investments have inherently lower price volatility simply because they are only reappraised sporadically.
Third Avenue Credit experienced this problem a few years ago because it was an illiquid fund that was not well diversified.
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.
Because the over-the-counter bond market can be very illiquid.
I guess I thought because a home can be difficult to sell and equity is so illiquid, it doesn't need to be part of my calculation.
Nor is it freedom for a management to ignore the trading values of illiquid assets, because rating agencies and counterparties will still watch those factors, and a run on the company is as likely in a fog as on a sunny day.
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.
The reason hedge funds lock up funds because many hedge funds invest in start - up companies or other illiquid investments.
But now it appears to me that the Board's thinking was much more Machiavellian; It seems to me that they believe they have greater leverage with the hedge funds (yes, those who dumped their common shares in 2013 but were unable to dispose of their GSD shares and Dividend Notes because these latter two are illiquid).
I have found the process of finding net - nets more intellectually stimulating than profitable because I often find that obtaining a position is an exercise in frustration given the illiquid nature of the typical net - net.
Just because a ETF has a low volume on any given trading day, does not mean it's illiquid.
If you have an illiquid option, you will have a harder time cutting those losses because the cost will be much higher to buy out of it.
I put in a fudge factor because illiquid bonds are higher beta, and then studied which of my brokers might have a bead on the bonds in question.
In a time of panic, those insights are golden, because other managers toss out illiquid bonds that they don't fully understand.
Because in crises, the long assets are illiquid, and as such the value shrinks when liquidity is prized.
Illiquid assets may also be hard to sell quickly because of a lack of ready and willing investors or speculators to purchase the asset.
Just beware slick marketing pitches designed to make you feel inferior because you're not one of the «cool kids» investing in illiquid private securities.
Because the life annuity is subject to inflation risk and is illiquid, and because household needs and preferences are so diverse and critical, the governmental stance toward this issue should be one of mild encouragement of and education about life annBecause the life annuity is subject to inflation risk and is illiquid, and because household needs and preferences are so diverse and critical, the governmental stance toward this issue should be one of mild encouragement of and education about life annbecause household needs and preferences are so diverse and critical, the governmental stance toward this issue should be one of mild encouragement of and education about life annuities.
It's a difficult job because the feedback cycles are so long — especially when it comes to investing in illiquid assets like startups (and Unicorns).
Most of the time this strategy works, because illiquid assets offer a premium return to compensate for the higher risk.
The reason a policy with a large cash value may actually be less appealing to investors is because the investors do not want to «buy cash» — especially if it is illiquid cash that can't be used for many years.
The reason a policy with a large cash value may actually be less appealing to investors is because the investors do not want to «buy cash» — especially if it is illiquid cash that can't be used for many years.
Because new cryptocurrencies such as an ICO are often even more illiquid and thinly traded than say bitcoin (which itself is relatively illiquid), whales and insiders without vesting and lock - up periods can quickly move the market up and down due to the large amounts of coin holdings they have.
But here I am defining «active markets» as those serviced by at least one order matching service (one exchange), because informal markets tend to be erratic, illiquid, and difficult to quantify.
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