Sentences with word «illiquidity»

However, for the long - term investor interested in unlocking the long - term illiquidity premium following a buy and hold strategy, the liquidity offered by a traded REIT is no benefit, for they arguably have no need for it.

In making tradeoffs among competing alternatives, we have distinguished ourselves from other professional investors in several ways: our willingness to hold cash balances, sometimes substantial, awaiting opportunities; our preference for investments with a catalyst for the realization of underlying value; our willingness to accept varying degrees of illiquidity in exchange for incremental return; and our flexibility in pursuing opportunities in new areas.

In fact, opportunity risk may just be an extreme case of illiquidity risk (if the asset were fully liquid, you could switch to the better opportunity).

This is usually a result of market illiquidity such as at market open, or during rollover at 10:00 PM GMT for example, the spreads may widen in response to uncertainty regards market direction or to increased market volatility.

the vic writeup suggests an 18 % illiquidity discount on top of any discount related to the 15 % of ev stock purchase discount for management.

Spotify's valuation when it lists - expected to be within 90 days after filing — is forecast to be a few billion dollars higher than current trades, as illiquidity risk tends to depress the value ahead of listing, the sources said.

But this is only an artifact rooted on illiquidity.

Profiting from Illiquidity To profit or protect our assets from the vagaries of the costs to trade, we need to understand what changes in liquidity — and consequently in equity returns — might be in store for us.

First, he notes that the relative illiquidity seen in small - caps actually benefited them during the early - February market meltdown, which was worsened by forced selling in volatility products.

Investing in unlisted businesses (particularly start - ups and early stage) is high risk / high return investment strategy and carries significant risks including illiquidity, loss of capital, rarity of dividends and dilution.

Do not accept principal risk while investing short - term cash: the greedy effort to earn a few extra basis points of yield inevitably leads to the incurrence of greater risk, which increases the likelihood of losses and severe illiquidity at precisely the moment when cash is needed to cover expenses, to meet commitments, or to make compelling long - term investments.

Illiquidity events become more common when equity prices are falling, and credit spreads rising.

Recall that the»98 cuts were largely due to illiquidity problems from the LTCM crisis, not because of more general economic risks.

is caused as much by illiquidity as it is by insolvency.

By new, I mean any class of assets that has not suffered market failure, so that the loss potential and illiquidity during a bear market could be estimated fairly, and the proper risk - based capital level set.

That said, an asset's illiquidity does not speak to its return potential; It only means it may take more time to find a buyer to convert the asset to cash.

In closing, don't worry about illiquidity in the bond markets.

We make money off of superior knowledge, though illiquidity means that trades will be infrequent.

There are several reasons to avoid illiquidity in investing, and some reasons to embrace it.

Often the terms illiquidity premium and liquidity premium can be used interchangeably to mean the same thing.

Ironically, I'd be much more upset feeling forced to ride illiquidity over the peak of a good market cycle, when I might have otherwise been able to reallocate.

Furthermore, illiquidity makes Bitcoin inelastic, and hence volatile.

We're also beginning to see continuous warnings about the severe illiquidity of the bond market.

For example, reader Nate writes, «I prefer equities because real estate doesn't provide a sufficient illiquidity premium to merit the leveraged risk and transaction cost.

Our investment - led process has been refined to focus on high - conviction private equity strategies with risk - return profiles that have rewarded illiquidity in the past, and where we believe that a supply and demand imbalance between the need for investment and available capital will persist in the future.

A skeptic, because many endowments were taking on too much illiquidity.

Emerging - market securities carry illiquidity and volatility risks.

Exotic spreads, however, have much more illiquidity and higher spreads.

This can be particularly powerful during periods of time when markets are moving quickly or segments of the bond market are experiencing illiquidity.

«Algomi's cutting edge technology, combined with Euronext's established position in the market place, will enable us to further diversify our revenues and capture selected opportunities arising outside of Europe, whilst tackling the symptomatic illiquidity of global corporate bond markets in partnership with our clients.

It may be advisable to avoid investing in any investment vehicle that you don't understand, but this maxim is especially true in the case of annuities, because with the complexity comes additional expenses, tax consequences and illiquidity handcuffs.

I'm not so convinced about that with all the moves against BTL and the general illiquidity of the asset class, so I'm actually expecting (or maybe hoping for?)

«It really does open the door to retail investors who have wanted to gain exposure to the crypto markets but have either not had the technical expertise to know how to access them or have found the volatility and illiquidity off - putting.»

This desire for stability allows global finance to prey upon us, because finance prefers liquidity, even volatility — and as the rules are set now, liquidity always beats illiquidity at the game of maximizing profit.

What I would watch in financial companies is any significant increase in their need for financing, which could point out real illiquidity, even though the balance sheet might look strong; this one is tough because financials are opaque, and the cash flow statement is not so useful.

If this is representative of the endowment model, let me then say that the endowment model accepts illiquidity risk more than most strategies do.

If you can take on a little illiquidity on a quality company that is not well - known, that could be a good idea.

This induces illiquidity and dangerous trading conditions.

We argue that the substantial average return surrounding a RM is compensation for shell stock illiquidity and the uncertainty of finding a reverse merger suitor.

Question: does a moment of illiquidity imply that the US Treasury market is somehow illiquid?

We tend to exploit illiquidity, buying when fear is prevalent and selling into enthusiasm.

If you add these back to the balance sheet, and combine it with the 44.6 million coming due as part of the GE capital redemption for the preferred shares, then I worry that this company seems to be rapidly headed towards illiquidity, if not insolvency.

On December 10, 2007, the Fund notified the Company that conditions in the short - term credit markets had created a broad based perception of risk in non subprime asset - backed securities causing illiquidity across the market which led to extreme pricing pressure in those securities.