Sentences with phrase «liquidity premium»

This is referred to as liquidity premium (the former) or discount (the latter).

How profitable is automated multi-horizon extraction of liquidity premiums in currency exchange markets?

If the replacement bond is going to be a Treasury, choose the off - the - run rather than the on - the - run so that you're not paying for liquidity premium, which is additional richness priced into the on - the - runs due to the demand by the repo markets.

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.

This is a huge advantage because there is clearly a significant liquidity premium to be captured by investing long term, not to mention the ability to better avoid the chaotic noise and behavioral finance mistakes that arise with a short term environment and outlook — especially in volatile markets.

Very few fixed income assets are cheap, even if they should be, and investors» appetite for yield continues to drive liquidity premiums lower.

By opting out of daily liquidity, which goes unused by most ordinary investors — a logical decision for a long - term investor — Fundrise eREIT investors avoid the returns - shrinking liquidity premiums experienced by public market investors.

The ongoing economic recovery from the credit crisis and the resulting equity market expansion have been driven not only by the resurgence of asset values, but also — thanks to the Fed — by cheap money that has pushed equity market liquidity premiums to match all - time lows.

Our research suggests that this public liquidity premium could cost as much as 20 - 30 % upfront and may be the most significant reason why private alternatives have historically outperformed public equities, at least for institutional investors like the $ 200 billion California Public Employees» Retirement System (CalPERs).

Liquidity Premiums in the Global Listed Real Estate Sector 2002 - 2012.

As was discussed by Frances and other commenters, it is arguable that social discount rate should not include a time value of money, and should not include a liquidity premium.

That is, it is designed to be the same as the liquidity premium embedded in government paper.

Care for some liquidity premiums with your alpha?

The current yield on all fixed income securities — and specifically the general yield of the junk market — does not in any way price in liquidity risk (aka a «liquidity premium»).

Their objective was to test for a liquidity premium in the $ 14 trillion global corporate bond market.

That large bid / ask spread is equivalent to almost two years of the spread advantage of illiquid (as measured by bid / ask spread) investment - grade bonds, creating a large hurdle for providing a liquidity premium.

As I mentioned later, the real reason to own real estate is not for a return or liquidity premium, but a return of cash premium.

Academics agree there is a liquidity premium in the equity markets: you pay extra for the privilege of owning an asset that is easy to sell.

Investors in these illiquid investments expect a premium, known as the liquidity premium, for the risk of locking up their funds over a specified period of time.

Liquidity premium is a premium demanded by investors when any given security can not be easily converted into cash for its fair market value.

Additionally, investors who have the capital to invest in longer - term investments are able to benefit from the liquidity premium earned from these investments.

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

The shape of the yield curve can further illustrate the liquidity premium demanded from investors for longer - term investments.

When the liquidity premium is high, the asset is said to be illiquid, and investors demand additional compensation for the added risk of investing their assets over a longer period of time since valuations can fluctuate with market effects.

The difference in prices and yields is called the liquidity premium.

Care for some liquidity premiums with your alpha?

«For buy - and - hold investors, it seems not only unfair but foolish to pay 20 — 30 % more for a liquidity premium that you don't intend to use.»

Some studies show a liquidity premium that may be as large as 1 percent, and changes over time.

Is it possible that the previously stated anomalies, namely the value premium, the size premium, the liquidity premium and the volatility premium, are present only in non-cross-listed stocks?

The identified fundamental sources of return include exposure to: interest rates; inflation; credit quality; liquidity premium; incomplete information / transparency; global and domestic economic growth; political uncertainty; and foreign currencies.

There is a possibility though that higher risk or liquidity premiums could be built into mortgage rates, especially variable rates as Brexit unfolds over the next few years.

The liquidity premium theory?

«It is a basic fact in finance literature that there is a liquidity premium for easily saleable, publicly traded securities, and an illiquidity discount for closely held companies whose stock is not saleable.»

«We need to deliver a liquidity premium and a risk - based capital premium.»

It is structural flaw of the public markets that long - term, buy - and - hold investors are forced to pay a liquidity premium for the ability to sell their shares daily.

«For buy - and - hold investors, it seems not only unfair but foolish to pay 20 — 30 % more for a liquidity premium that you don't intend to use.»

Liquidity comes with a price, known as a liquidity premium.