Sentences with phrase «long illiquid»

It was the classic asset - liability mismatch — long illiquid assets financed by short liquid liabilities.

When long illiquid assets are financed by short liabilities, all sorts of bad things can happen.

There are demands for cash payment, and the payments can't be made because the entities have short liabilities requiring immediate payment, and long illiquid...

Not exact matches

The first thing is that it is a very illiquid investment, so it has to be an investor with a long time frame.

Moshe Milevsky, a finance professor at Schulich and one of Canada's best - known home - ownership skeptics, has long argued that for young people with limited means and unrealized career potential, stowing most of their wealth in a single illiquid asset is foolhardy.

Big institutional funds often have large allocations dedicated to investments that are privately held, illiquid, and long - term in nature.

Their companies are illiquid, high - risk, long - term investments ready to swallow every drop of cash their owners can find.

Some hedge funds specialize in illiquid investments for investors with a long time horizon who could care less what the market does on a daily, weekly, monthly or yearly basis.

Offering periodic redemptions rather than daily redemptions gives the fund the opportunity to invest in assets that may be considered more illiquid in nature and higher risk, and therefore more suitable to long - term investors.

When these loans became illiquid, and the firm had no ability to pay back its creditors, Lehman Brothers experienced a credit crunch; it could no longer cheaply raise cash via debt issuance, and issuing stock under such conditions led to both dilution of shares and negative sentiment, which caused its share price to fall.

If liquid assets run out, which illiquid assets will need to be realized and how long will they last for?

1: The Fund Manager 2: Skin in the Game 3: Long - term Historical Performance 4: Concentrated Holdings 5: Low Turnover of Stocks 6: A Fund that has not Grown too Big, or is too Small / Illiquid

Prolonged curve flattening from the aforementioned easy financial conditions (low long - term rates) despite rising short - term rates would steadily increase institutions» vulnerability to potential balance sheet shocks, as investors continue to add low quality and illiquid assets to «enhance returns.»

Rather, my impression is that the problems at JPM may be the result of using highly leveraged, illiquid derivative transactions as a «cross-hedge,» intended to reduce the risk of default in a whole portfolio of complex positions including (but not limited to) European mortgage debt, but with the long and short portions of the position behaving unexpectedly in relation to each other.

Angel investments are inherently illiquid, long - term investments.

I think illiquid stocks sometimes take a little longer to react to news that is more quickly priced into liquid stocks.

While these illiquid, long - term investments have several advantages and are an important component of a well - rounded portfolio, many investors in the SeedInvest community have expressed interest in further diversifying their portfolio with investments which begin delivering returns on a shorter timeframe.

Since real estate is quite illiquid and there are high transaction costs associated with frequently buying and selling properties, it may be in your best interest to hold your real estate for a long time anyway.

The Total assets, on the other hand, represent all illiquid assets such as the real estate or other assets that can take longer to convert into cash.

Risk that the Feds should care about is the toxic mix of illiquid assets funded by liquid liabilities; long liability structures r safe $ $

The idea that it's dead money is nonsense, it's a pretty illiquid asset that has the potential for growth (at the rate of inflation or slightly higher, long term) and provides you an annual dividend in the form of free rent.

The problem this calculation of excess cash is that «long - term investments» can be illiquid things like real estate.

Overall, investors who choose to invest in longer - term illiquid investments want to be rewarded for the added risks.

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.

In stressed or illiquid markets, an ETF's price may be below its reported NAV by a lot, or for a long period of time.

You estimate the duration of the crisis, and if it is longer than your liquid assets can finance, you sell some of your best illiquid assets now, and play for time.

Alternative investments are speculative, subject to high return volatility and involve a high degree of risk including, but not limited to, the risks associated with leverage, derivative instruments such as options and futures, distressed securities, may be illiquid on a long term basis and short sales.

Illiquid assets must be funded by equity or long - term noncallable debt, where the term is as long as the asset's horizon.

Because in crises, the long assets are illiquid, and as such the value shrinks when liquidity is prized.

Fundrise investments are intended to be long - term investments and are inherently illiquid in nature.

If individual purchases of investments were rendered illiquid, this might seriously impede new investment, so long as alternative ways in which to hold his savings are available to the individual.

For OP here, I'd hesitate only if the shares were illiquid or there were a longer holding period.

Now, to generate any significant commission off of a financial product, there have to be two factors in place: 1) the product must be long duration, and 2) it must be illiquid.

It's a difficult job because the feedback cycles are so long — especially when it comes to investing in illiquid assets like startups (and Unicorns).

For so long as illiquid coins continue to be listed on major exchanges, P&D s will continue to happen.

A financial constraint to consider is how long can you afford to be illiquid as you ramp up your operations.