Sentences with phrase «illiquid when»

Similar to Versus Capital, many other interval funds offer sales and redemptions on a quarterly basis, making it much more illiquid when compared to open - ended funds that allow sales and redemptions on a daily basis.

Not exact matches

When they go to raise another fund, some and probably even most of their track record is still going to be illiquid, in companies that haven't yet gone public or been acquired.

CHII is also extremely illiquid that it barely trades and traded at prohibitively wide spreads when it did.

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.

Side Pocket When a hedge fund opens a second account for its illiquid assets, it is called a side pocket.

We stepped up in an illiquid market in order to facilitate the orderly unwind of risk and when necessary, committed our own capital to help serve the needs of our customers,» says Christian Salomone, head of North American foreign exchange options trading at Goldman Sachs.

The former can make sense, Weckbach notes, when one of their multiple accounts includes an illiquid investment (such as a stock position in a small company) that's not easily sold in order to raise funds for an RMD.

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.

When considering alternative investments, you should consider the fact that some products may utilize leverage and other speculative investment practices that may increase the risk of investment loss and be illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees including incentive fees, and in many cases have underlying investments that are not transparent and are known only to the investment manager.

I have seen this in the market myself, and seen management teams struggle with how to price an illiquid bond when tax loss sellers bomb the market at the end of a year

The boss had an interesting insight, though: he suggested when you get to large sizes, stocks and bonds are equally illiquid.

Also, I know what the temptation is to mismark illiquid bond positions when incentive payments may be riding on the result (which is why we took the marking out of our hands at a prior firm).

Too many thought it was easy money to invest in illiquid assets, and when the liquidity panic came in 2008 - 2009, they were forced to borrow, and / or sell illiquid assets at an inopportune time.

I have «traded» illiquid securities in my life and have a feel for when claims r invalid.

Buyers with deep - pockets can create huge price changes when they attempt to enter relatively illiquid markets.

Remember, management teams usually know more than the average analyst when it comes to knowing the true value of cash that can be generated from illiquid assets.

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.

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.

When the liquidity premium is high, the asset is said to be illiquid, and investors demand additional compensation for the added risk of investing their assets over a longer period of time since valuations can fluctuate with market effects.

Liquidity can be a concern when there is an asset / liability mismatch in commingled vehicles, and there is a risk that funds may sell illiquid assets to meet redemption requests.

When long illiquid assets are financed by short liabilities, all sorts of bad things can happen.

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.

It started even more analytically illiquid and complex when initially invested in Reading's three micro-cap predecessor companies, Craig Corp., Reading Entertainment and Citadel Holdings.

When markets are illiquid, they «trade by appointment.»

Dr. Wade Pfau's new book, Reverse Mortgages: How to use Reverse Mortgages to Secure Your Retirement explains how, when used correctly, reverse mortgages can provide an added layer of security for retirees and allow them to enjoy retirement more by gaining liquidity from an illiquid asset.

Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations.

Putting a value on a mutual funds valuation can be complicated when some securities provide hard to value and illiquid.

The OP asks if there is a scenario when he / she wants to sell and no one wants to buy or when he / she wants to buy and no one wants to sell, then the limit order provides this scenario, especially in illiquid stocks.

The big advantage with MM is that they will provide a market even when the underlying is very illiquid and only might have a few trades each day.

The Manager may determine the fair valuation of a security when market quotations are insufficient or not readily available, when securities are determined to be illiquid or restricted, or when in the judgment of the Manager the prices or values available do not represent the fair value of the instrument.

When I was the risk manager for two life insurance companies, one of the first things that I did was analyze the illiquidity of my assets and liabilities, making sure I had liquidity adequate to fund illiquid assets.

When liquidity is scarce, prices tend to fall, though it is often masked by a lack of trading in an illiquid market.

If (& when) the market's puking up ridiculous bargains at some point in the future, that's precisely when small caps are guaranteed to be far & away the most illiquid.

Because in crises, the long assets are illiquid, and as such the value shrinks when liquidity is prized.

I remember how delicate I had to be when I owned 35 % of an illiquid bond that we liked, and I needed to sell it down without spooking the market.

When accounting rules are not well - defined, and instruments are illiquid, even well - meaning managements tend to err in their favor in the short run.

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.

My experience has been that a liquidity crisis is much more stressful than having a mortgage or other debt — illiquid wealth is almost useless when you need cash.

When stocks become illiquid, their prices fall further.

This just goes to show that constructing a real portfolio and a hypothetical portfolio are very different things, especially when dealing with very illiquid securities like I do.

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).

These may include delayed - delivery and when - issued securities transactions; swap agreements; buying and selling futures contracts, illiquid, and / or restricted securities and repurchase agreements; and borrowing or lending money and / or portfolio securities.

Tellingly, even though emerging art has been discounted as an asset class (astoundingly, by Art Basel's director Marc Spiegler, who recently said of it: «When it goes illiquid, it goes totally illiquid»), I noticed several hopefuls carrying a list of the young artists / collectives tapped for the forthcoming Whitney Biennial, chief among them Sky Hopinka, Park McArthur, Torey Thornton, Puppies Puppies and Porpentine Charity Heartscape.

The value of Seagate's investment in Ripple Labs is much less than speculated when you drill down on how much it owns, the illiquid aspect of it and the volatility of XRP's cryptocurrency

When trading illiquid markets, using automatic stops could be really frustrating if you don't set - up a rule (or those rules are not available) for the order to be triggered when the price remains outside the stop for a certain amount of time (and thus ignoring brief spikWhen trading illiquid markets, using automatic stops could be really frustrating if you don't set - up a rule (or those rules are not available) for the order to be triggered when the price remains outside the stop for a certain amount of time (and thus ignoring brief spikwhen the price remains outside the stop for a certain amount of time (and thus ignoring brief spikes).

For example, when making large payments for illiquid assets such as real estate the use of traditional escrow services are preferred.

Business Valuation: Discovery, What We Learn When We Value a Business and Unusual Items and Affecting Value, Michael R. McLaughlin, CFA, ASA, CVA & Nannette Watts, CPA, ABV, CFF Creating Liquidity Solutions with Illiquid Real Estate Assets, Andrew Samalin, CFP, EA, CDFA Understanding Trusts and Other Estate Planning Issues Before, During and After...