Sentences with phrase «less liquidity by»

The trade off for Berkshire shareholders is higher return for less liquidity by having to hold on to the stock for many years.

Not exact matches

By shifting the risks away from banks and to asset managers, Gross argues that the risk of herd behavior that causes a liquidity event in markets has been shifted away from the professional investing class and to a more amateur, less - informed, skittish class of investor: the public.

By contrast, there has been some reduction in liquidity in the segments of these markets that have historically been less liquid.

The low liquidity levels are caused by a combination of regulations, which make it less attractive for big banks to hold inventories of bonds for dealing, and new forms of quick, computerised trading, which have the potential to move markets in times of stress.

In a sense, Uber and Airbnb vastly improved the liquidity for rides and room and board by making these services more available for less cost and higher quality.

Non-commercial traders, or speculators, have always played a crucial role by providing liquidity, but only ever made up less than 30 per cent of the market.

In such periods, there is a flight to quality by investors that drives down the rates on presumptively risk free investments like Treasury bills.Conversely, as was the case in the post-Lehman Brothers crisis, banks become less creditworthy and liquidity in the interbank lending market dries up.

Such structural improvements protect the financial system by making it less likely that banks will suffer liquidity crises or that such crises will spread contagiously from one institution to another (see below).

Even if part of this decline was driven by a heightened liquidity premium the implication is the same: it indicates an increased demand for highly liquid and safe assets which, in turn, implies less aggregate nominal spending.

Much of the debate over the past years about the benefits and the costs global specialization, primarily the rapid advance of China as a major manufacturing center has been less about the financial costs — the $ 12 trillion dollars of additional liquidity that the US consumers offered to the world (the cumulative US trade deficit from 1990 through 2015 compared to the over $ 3 trillion dollars in trade surplus run - up by China over this same period — and more in terms of the jobs lost and the impact of foreign products on American wages in manufacturing.

Structural changes in the economy, whether by the government or through private channels will shift where liquidity goes, but it will not change the amount of liquidity, unless the changes are so severe that the economy itself becomes much less productive.

If you take advantage of this liquidity to trade in and out of ETFs — or to sell them short — you can wind up losing money, or making less than you would by simply holding on to the top ETFs.

The BMO fund's fee is slightly less than XIU, but that difference may be outweighed by higher trading costs due to the lack of liquidity.

Mostly used by investment professionals, extended trading hours often have low liquidity rates and wider spreads between bid and ask prices, resulting in risks of having orders executed at a less favorable price than during regular trading hours.

[3] Moreover, the anticipation of needing to make a payment for which a compensating tax benefit payment by Pride may not arise until a future date could theoretically serve as a catalyst to dispose of less desirable rigs to provide interim liquidity.

The ETHLend team aims to provide more democracy to lending by removing interest rate differences between different nations by providing more liquidity when there are less excessive barriers on lending.

Certain «Daily Net Asset Value (NAV) REITs» may provide enhanced liquidity by offering periodic, e.g., daily (or less frequent) repurchase options at net asset value.

Funds advised by Mr. Fasciano cover a wide variety of strategies and asset classes, with varying liquidity characteristics, including more typical asset classes such as publicly traded equities, as well as less typical asset classes such as loans, consumer receivables and renewable energy credits.

But most homeowners with mortgages who place their savings in bank deposits or money market funds paying less than 1 percent, rather than earning 3 to 6 percent by paying down their mortgage, do it for reasons other than a need for liquidity.