Sentences with phrase «liquidity risks move»
What happens to my funds if the volatility and liquidity risks move against Abra, causing in worst case Abra to go bankrupt?
https://www.abra.com/ Not exact matches
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.
I would not exclude another LTCM style episode of systemic risk given the risk of unraveling of highly leveraged carry trades and the end of easy liquidity: triggers could be a disorderly move of the US dollar, perhaps following trade war threats to China, leading to a 1987 - style stock market crash; or MBSs interacting with a housing slump and the hedging activities of GSEs; or greater corporate distress or a Ford / GM entering into Chapter 11 triggering a massive sell - off in the murky, non-transparent and untested credit derivatives.
As we move further into 2018 without the economic acceleration and boom (hysteria aside, the inflation scenario never got very far in junk markets), and with liquidity risk rising again, it can't be surprising that junk markets struggle.
Main message being, the further we've moved away from appropriate fair valuation in any market cycle, the more susceptible we are to risk when shorter term «weather conditions» (liquidity and trend) change.
I have dabbled in quantitative factor models in the past, and normally I start with an index, group by sector, and then compare each company relative to its sector (I use valuation metrics, liquidity, technical factors such as relative strength and price relative to moving averages, earnings volatility, earnings estimates revisions, balance sheet metrics, beta, and a proprietary risk / reward metric).
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.