"Less liquidity" refers to a situation where there is not enough easily available money or assets in a market or an economy. This can make it difficult for individuals or businesses to buy or sell goods, or for banks to provide loans.
Full definition
For private market investments, the change in mindset involves embracing a trade off — expected steady, predictable higher yields in exchange
for less liquidity.
This leaves the bond
with less liquidity, since bond buyers can find similar maturity bonds with higher interest payments.
With
less liquidity concerns, we could possibly be more fully invested but you should expect similar types of opportunities to crop up in the portfolio.
I assume money market outflows would mean
less liquidity in the commercial paper market, or that the Fed will take up even more slack there.
The plan sponsors can allocate all they like to alternatives, but they aren't magic... they can do just as bad as public equity, and with
far less liquidity.
A related issue is that traditional market makers may pull back in the normal times as the business becomes less profitable meaning that there may be
less liquidity available than in the past in stressed times.
For banks in the Federal Reserve System, they lend through Fed Funds, of which the Federal reserve provides more or
less liquidity as it sees fit.
Small cap companies (i.e. stocks with market caps under $ 2 billion) can have much
less liquidity compared to large cap companies.
The trade off for Berkshire shareholders is higher return for
less liquidity by having to hold on to the stock for many years.
There, HNW investors and family offices can zero in on properties priced lower (and
offering less liquidity) than what entices foreign and institutional investors, but higher than what many local investors can afford, Mulcahy says.
«I think the reason for that paradox is there is
just less liquidity in the medical office sector, because that investment market is still in the early stages of development and you have [fewer] investors,» Putnam says.
Broadly speaking, traditional access to hedge funds via private placement vehicles often
meant less liquidity, with redemption periods restricted to monthly or quarterly windows.
With
less liquidity concerns, we could possibly be more fully invested but you should expect similar types of opportunities to crop up in the portfolio.
But it may not make much sense to compare the cost of trading a highly - liquid core ETF tracking a broad - based index like the S&P 500, to a more niche ETF that is exposed to emerging markets and has
far less liquidity.
Lack of regular analyst coverage and institutional buying are additional reasons why there is
less liquidity in the micro-cap markets than in larger - cap stocks.
«A run of bad data on jobs or ISM surveys would leave us dealing
with less liquidity (post tapering) and less growth, likely instilling some incremental fear of an earnings plateau or decline.»
Wider spreads, Dick said, means
less liquidity, which means higher volatility.
«CDs can offer higher rates than savings accounts, but the price you pay is to have
less liquidity,» says Tumin.
The less liquidity there is in a market the more prone it will be to big, sudden swings in price, known as flash crashes.
Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size,
lesser liquidity and lack of established legal, political, business, and social frameworks to support securities markets.
Investments in emerging markets involve heightened risks related to the same factors, in addition to those associated with these markets» smaller size and
lesser liquidity.
but do places that accept non accredited investors like fundrise have
less liquidity for longer periods of time?
Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets» smaller size,
lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets.
Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and
lesser liquidity.
In addition, early - stage startup investing has a higher rate of failure, volatility, and
less liquidity than other investments alternatives.
This is a bit unusual, as price and basis moves tend to be bigger in silver due to this metal's
lesser liquidity.
Morgan Stanley Research, in conjunction with Oliver Wyman, has written a Blue Paper, «Wholesale Banks & Asset Managers: Learning to Live With
Less Liquidity» (Mar 13, 2016).
Less liquidity means more natural price discovery, something many experts have warned has been missing for too long.
Rival CWI tracks the same index, typically with
less liquidity and lower but more variable holding costs.
Investments in emerging markets involve heightened risks related to the same factors, in addition to those associated with these markets» smaller size,
lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets.
Investments in developing markets involve heightened risks related to the same factors, in addition to risks associated with these markets» smaller size,
lesser liquidity and the potential lack of established legal, political, business and social frameworks to support securities markets.
Smaller markets have
less liquidity, and therefore offer greater opportunity for market - makers like Alex to profit.]
«Temporarily raising income taxes on high - income households during a downturn» would have the advantage of placing «a larger burden on households that are
less liquidity - constrained,» they said.
Investments in small - capitalization companies are subject to greater price volatility, lower trading volume, and
less liquidity than investing in larger, more established companies.
You'll see that currencies with more volatility or
less liquidity have a much wider spread.
Investments in emerging markets involve heightened risks related to the same factors in addition to those associated with their relatively small size,
lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets.
Investing in securities of foreign issuers involves risks not typically associated with U.S. investments, including adverse fluctuations in foreign currency exchange rates, adverse political, social and economic developments,
less liquidity, greater volatility, less developed or less efficient trading markets, political instability and differing auditing and legal standards.
I understand that the less volume occurring in a security,
the less liquidity (the wider the bid - offer spread).
There are longer investment horizons and
less liquidity.
Emerging Markets / Frontier Markets risk: includes the risk of significantly higher price volatility,
less liquidity and more government intervention in the economy than in developed markets.
Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their smaller size and
lesser liquidity.
Stocks of small - size companies may have
less liquidity than those of larger companies and may be subject to greater price volatility than the over all stock market.
Investments in developing markets involve heightened risks related to the same factors, in addition to risks associated with these companies» smaller size,
lesser liquidity and the potential lack of established legal, political, business and social frameworks to support securities markets in the countries in which they operate.
Attractively priced stocks with good quality attributes (e.g. higher profitability or balance sheet strength) are allocated higher weights (up to 0.75 %) while stocks with a higher degree of uncertainty (e.g. lower profitability or
less liquidity) are allocated much smaller weights (typically 0.05 %) to reflect their higher risk / return characteristics.