Sentences with phrase «illiquidity means»

Illiquidity means a loss of flexibility.

Not exact matches

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.

Key findings here included the fact that SWFs often chose to enter private markets as they believed that their long - dated liabilities mean they can benefit from the illiquidity premium that these assets offer.

We all want stability, which in financial terms means illiquidity [Editor's Note: «Illiquidity» refers to assets not easily transferred to currency, a property that can protect against» volatility» — rapid, radical swingsilliquidity [Editor's Note: «Illiquidity» refers to assets not easily transferred to currency, a property that can protect against» volatility» — rapid, radical swingsIlliquidity» refers to assets not easily transferred to currency, a property that can protect against» volatility» — rapid, radical swings in value].

Investing in private equity to benefit from the illiquidity premium and / or small cap premium is also a possibility as a means to diversify and benefit from the above stated premiums, even though this asset class has become very crowded as yields have declined significantly.

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.

This is because illiquidity and sharp price movements mean a trade can quickly translate into significant losses as large swings take place or «whipsaw».

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