Sentences with phrase «illiquidity premium»

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.

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.

But to take it a step further, I prefer equities because real estate doesn't provide a sufficient illiquidity premium to merit the leveraged risk and transaction cost.

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

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.

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.

Academic research has pointed to an illiquidity premium for shares.

To deliver an illiquidity premium we are focused on what we believe to be best - in - class investments, giving you choice on how to access Private Equity and how involved you want to be in the investment decisions.

Private equity investing should always deliver an illiquidity premium when compared against public equity market investing.

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.

The higher yields also compensate for the lack of a secondary market for the investment (an illiquidity premium).

Of course, some of the higher yield for commercial mortgages is linked to this illiquidity premium, but by giving up some liquidity, investors may be rewarded with significantly higher yields.

Moreover, investors expect to be compensated extra for holding illiquid securities in what is called an «illiquidity premium».