Sentences with phrase «liquidity risk also»

Not exact matches

While most people think about portfolio diversification in terms of high - risk and low - risk investments, it also has to do with liquidity.

New rules aimed at reducing risks associated with counterparty transactions and introducing liquidity stress tests have also been drafted.

Chapter 1 finds that these risks have also been pivoting away from banks to shadow banks, from solvency to market liquidity risks, and from advanced economies to emerging markets.

In addition, I would point out that equities are purchased and traded by private individuals, who inherently have time value of money and liquidity preferences that are also priced into equities, given their specific limitations and characteristics (e.g., in the event of a stock market crash, liquidity may disappear at the exact moment it is most desired, and therefore the risk of that lack of liquidity is priced into the equity).

He also said that there's a risk of a double - dip recession «if liquidity disappears.»

You also don't have to worry about liquidity issues or other potential risks, thanks to the ETF Rating System.

«In terms of liquidity, not only do our largest firms now have the right kind and amount of liquidity calibrated to their funding needs and to their likely run risk in stressed conditions, but they also are required to know where it is at all times and to ensure it is positioned or readily accessible where it is most likely to be needed in resolution.»

Also, capital markets do offer one advantage, in terms of lower risk: liquidity.

He was also a member of ALCO Committee and the Risk & Liquidity Management Committee where he closely worked with the Board of Directors towards ALM Management.

These premia must do, as I said, with default, with liquidity, but they also have to do more and more with convertibility, with the risk of convertibility [e.g. a country now using the Euro makes the political choice to leave the Euro and issue its own new national currency.

His former colleague and incoming Federal Reserve Chair Powell also expressed a similar view, calling Fed's balance sheet expansion tantamount to «short volatility position,» and private capital displaced by Fed's outsized presence would «find something else to do,» such as adding duration, credit and liquidity risk with implicit understanding that the central bank «will be there to prevent serious losses:»

According to Fitch, Chile's biggest lenders «exhibit a solid risk management framework based on local regulatory standards and robust corporate governance practices, adequate provisioning and controlled impairment levels», whilst also possessing strong levels of liquidity.

Institutions are also integrating ETFs into vital portfolio functions, like liquidity management (cited by nearly half of survey respondents) and risk management (cited by about 40 per cent).

High - yield bonds (also known as «junk bonds») may be subject to greater levels of interest rate, credit, and liquidity risk than investments in higher rated securities.

Liquidity — There is also the «liquidity» risk; how easily can you turn your investment back into cash when you need it without losiLiquidity — There is also the «liquidity» risk; how easily can you turn your investment back into cash when you need it without losiliquidity» risk; how easily can you turn your investment back into cash when you need it without losing money.

There are also geopolitical risks, uncertain capital market regulation, transparency and liquidity issues.

One must also look at risk - based liquidity — what is the likelihood of running out of cash?

It is also important to carefully weigh liquidity and risks associated with P2P lending.

The liquidity (ability to sell out of a company) of stock investing is much higher than real estate, and therefore also entails lower risk.

Bonds are also subject to various other risks such as call and prepayment risk, credit risk, reinvestment risk, liquidity risk, event risk, exchange rate risk, volatility risk, inflation risk, sovereign risk and yield curve risk.

According to the SEC (2013) the key risks of corporate bonds are default risk (also referred to as credit risk), interest rate risk, economic risk, liquidity risk and other significant risks including call and event risk.

Fixed income securities also carry other risks, such as inflation risk, liquidity risk, call risk, and credit and default risks.

The Portfolio is also subject to country / regional risk, currency risk, emerging markets risk, investment style risk, liquidity risk, currency hedging risk, nondiversification risk, index sampling risk, and derivatives risk.

Due consideration must now be given to the overall investment strategy not just in respect of risk / return, adequate diversification, liquidity and costs, but also the expected tax consequences of investments held by each fund.

A review of high - yield debt investments should cover: (1) analysis of the industry, including growth rates, special risks and leading companies; (2) analysis of the bond issuer, including the company's position in its industry; new products; management stability; the outlook for growth in revenues and cash flow as captured in Earnings Before Interest, Taxes, Depreciation and Amortization, also called EBITDA; value of corporate assets and the debt maturity schedule; and (3) analysis of the issue, including special provisions in the «bond indenture,» covenants protecting the bondholder, use of the money raised in bond offerings, debt seniority, secondary market liquidity and call provisions.

I think one has to balance that risk against paying down debt today, and it also helps to have a spread of investments at varying degrees of liquidity and risk variance should credit fail you when you need it.

Liquidity risk may also refer to the risk that the Fund may not be able to pay redemption proceeds within the allowable time period because of unusual market conditions, unusually high volume of redemptions, or other reasons.

Liquidity risk is also eliminated by buying and holding a bond until maturity, because there is no need to trade it.

With uncertainty over Fed moves, there's also liquidity risk — if banks decide to stop making the large short term loans, the value of the underlying REIT will decrease.

Corporate bonds are also subject to other investment risks like interest rate risk, liquidity risk and prepayment risk, see below.

Also, capital markets do offer one advantage, in terms of lower risk: liquidity.

Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties.

Debt securities also may be subject to price volatility due to market perception of future interest rates, the creditworthiness of the issuer and general market liquidity (market risk).

You must also think about liquidity, exercise rights, counterparty risk, price transparency, administration, and leverage — a particular «red - line» for most funds.

The risk of inadequate liquidity while trying to exchange Bitcoin for cash and regulatory risks of non-compliance had also been plaguing business houses for long.

It also reminded investors about the potential risks in trading cryptocurrencies including insufficient liquidity and price volatility.

If the regulatory burden was not literally impossible to get through — we would have fully operational and regulated bitcoin exchanges in the US — regulated by US regulators — which would also add liquidity to the market and help with the volatility risks.

While Bitcoin does present all the desirable elements that traders need to effectively day trade a market, i.e. volatility, average daily range, and liquidity, a willingness to tolerate risk and weather a hefty draw - down will also be a necessary criterion for trading Bitcoin.

Low liquidity not only increases opportunities for market manipulation but also the risk of traders not being able to complete trade execution, owing to a low number of counterparties.

Trade.io's solution is to develop an exchange platform for the sharing economy where traders can not only exchange tokens, crypto and fiat currencies and other assets but also share in the risk and revenue of the liquidity pool.

Most also express a desire to take less risk and so are drawn to what they perceive as stable long - term markets with above - average liquidity.