Sentences with phrase «illiquidity at»

If stocks provide a better return with better liquidity and bonds provide a similar yield with better liquidity (and collateral), why take on the illiquidity at all?»

Not exact matches

In an uncertain world, committing long - term capital in exchange for an illiquidity premium and a predictable return that — while not shooting out the lights — should at least be highly respectable, has a lot to be said for it.

Any change in policy and financial conditions carries with it at least some chance of setting off instability which could snowball given the current high degree of illiquidity in many markets.

First, in light of the illiquid state of the market in November 2008 (an illiquidity that likely would have been exacerbated by AIG's failure), it is far from certain that the underlying CDOs could have easily been liquidated, even at the discounted price of $ 4.3 billion.

I've written at least two significant pieces on endowment investing: Alternative Investments, Illiquidity, and Endowment Management The Forever Fund Oh, toss in one more: Managing Illiquid As...

There may be more, but I will point at James Cramer's assertions that this is an illiquidity event, and not a credit event, and the assertions of Bill Gross that this event heralds a wider credit event, and soon.

How that bet will end is anyone's guess, but pension investors at least have a long time horizon, and can afford the illiquidity.

It made me more skeptical about arbitrage, leverage, and illiquidity, at least to the degree that one has to be paid to take on these risks.

Value stocks» outperformance is even more pronounced for small and mid cap companies, because they tend to trade at even bigger discounts due to illiquidity and lack of analyst coverage, as well as being able to achieve higher growth rates than larger companies.

The spreads are in the 50 - 150 basis point region now for TLGP borrowers at 3 years, and if it were regarded to be as solid as the US Treasury, the spread would just be a small one for illiquidity.

When I think of all of the different risks that can be taken in bonds (duration, convexity, credit / equity, illiquidity, currency, etc.) they are all being taken now, and at relatively high levels.

Illiquidity will mean the order won't close at the ideal price, regardless of how good a trader you are.

Whether one should apply an illiquidity discount at all when valuing SPLP depends on what you think the endgame is for the LP.

There are two factors at work here — yield and illiquidity.

There are clearly reasons why the units trade at a discount to NAV; there is the illiquidity of the units, small size of the market float and thus lack of institutional interest, as well as the opacity of the holding company's structure.

Many European banks bought them because they didn't have to put much capital against them for risk purposes, and the added yield helped them meet earnings targets, at a cost of greater illiquidity.

ILLIQUIDITY — the difficulty of selling assets at a reasonable price — is at the heart of all financial crises.

At one time, there was a very large difference in coupons of over.5 % between Canada issues, reflecting the illiquidity of the Canadian bond market and tax preferences of investors.

Lightning's illiquidity problem could be solved by creating large payment channels kept open and fully funded at all times, so that they were always available for payment routing.

At some point, if oil prices decline far enough for long enough, the high - yield bond market could experience significant illiquidity and raise concerns of greater financial contagion.