Sentences with phrase «liquidity risk»

The new ruling says that all mutual funds, but not money market funds, will be required to have a written liquidity risk management program with several required elements.

On the upside, there is opportunity with liquidity risk because other companies and investors that were flush with cash were able to buy distressed assets.

This whole discussion about liquidity risk by the market experts wasn't about gold.

High - yield municipal bonds may be subject to increased liquidity risk as compared to other high - yield debt securities.

To manage liquidity risk, investors can consider investing in higher quality assets, such as investment grade bonds.

These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few.

If the credit rating of an instrument is very poor then liquidity risk also arises and it is tough to find avenues to sell that instrument.

As a central banker, I am most concerned that credit risks and liquidity risks associated with payments are well managed.

Potential risks vary from financial risks, investment and market risks, credit and disaster risks to product failure, technology risks and cash liquidity risks.

First, and foremost, make sure that they are being well compensated for assuming liquidity risk; and make it a holistic part of their assessment of valuations.

In the simplest terms, liquidity risk refers to the risk that an investment won't have an active buyer or seller when you are ready to buy or sell it.

As the spread rises on less actively traded bonds, so does liquidity risk.

Risk management is primarily management of liquidity, and planning to avoid liquidity risks over the long haul.

Certain funds may purchase high yield securities, senior loans, private placements, or restricted securities that may carry liquidity risks.

Credit risk can also affect liquidity risk, which is influenced by investor supply and demand.

It can have, for example liquidity risk, since the market for structured products is not very deep.

My view is that introducing liquidity risk will be difficult for academic finance, because it will blow apart the simple models that they need in order to write their research.

And even well - regarded institutions learned a lesson about their ability to take liquidity risk — a risk inherent in many alternative strategies.

This video goes through this example and clearly shows why liquidity risk is something to consider in your portfolio and your investment decisions.

But liquidity risk management does not play a large role in their document — and this is a severe defect in what they write.

We thought about lots of alternate mechanisms to deal with liquidity risk, including longer notice periods and the like.

Hauptman notes there liquidity risks in these products because investors are locked in for a certain period of time — often 10 or 12 years — if they don't want to pay penalties.

While acknowledging the role of regulation as a possible contributor, it is important to recognize that this regulation was designed to reduce the concentration of liquidity risk on the balance sheets of the large, interconnected banking organizations that proved to be a major amplifier of financial instability at the height of the crisis.

The most excessive form of market liquidity risk is that dealers are shutting down, no bids, which is currently happening in a number of markets such as those for certain asset - backed securities and convertible bonds.

Liquidity risk exists when securities have become more difficult to sell, or are unable to be sold, at the price at which they have been valued.

But the issuing companies are exposed to liquidity risk if investors ask for their money back instead of reinvesting.

We are also encountering intense funding liquidity risk since banks are short on capital, so they need to scale back their trading that requires capital, and also scale back the amount of capital they lend to other traders such as hedge funds, now...

And in a virtuous circle, rising transaction activity reduces liquidity risks, promoting further investment.

Liquidity risk High yield bonds that may have been easy to buy or sell when market conditions were calm can suddenly become very difficult to sell when volatility increases.

Limiting the stock universe to the top 1,000 based on market capitalization suppresses liquidity risk.

«Nonbank mortgage originators and servicers — i.e. independent mortgage companies that are not subsidiaries of a bank or a bank holding company — are subject to far greater liquidity risks but are less regulated than bank - lenders and servicers.

The company added that it is «well reserved for its municipal exposures and, due to the non-acceleration feature, does not face liquidity risks,» and it concluded that it «strongly» disagreed with Eihnhorn.

Despite having share prices that move with market prices, these funds can give rise to first - mover advantages for redeeming shareholders and create the potential for destabilizing waves of redemptions and asset fire sales if liquidity buffers and other tools to manage liquidity risk prove insufficient.

In July 2006, she was appointed an officer of the Bank, and in October 2006, she transferred to the market and liquidity risk department, risk management function in the Bank Supervision group.

Mr. Toscano's primary responsibilities are the valuations of Cerberus» mortgage - backed securities and structured credit product as well as managing Cerberus» daily liquidity risk.

Liquidity risk derived from an investors ability to sell an investment when the market is dropping.

Several supporting initiatives, such as strengthening liquidity risk management, improving market transparency and monitoring or adjusting incentive schemes for market - makers, would help making this outcome more likely and would support the robustness of market liquidity.

Nor do lower inventories imply increased liquidity risks, as suggested by rising trading volumes over recent years (Graph B, centre panel).

Since there is usually something obviously wrong with the company you are analyzing, understanding liquidity risk (or the lack thereof) is also extremely important.

In addition to a huge liquidity risk, Tokyo took another risk in timing, as I argued then.

I've talked about liquidity risk before.

What happens to my funds if the volatility and liquidity risks move against Abra, causing in worst case Abra to go bankrupt?

However, further regional policy divergence, slow emerging markets growth and global liquidity risks are likely to keep market volatility higher, meaning effectively navigating a low - return world will remain a challenge.