Sentences with phrase «long illiquid assets»

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.

Not exact matches

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.

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.

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

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.»

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.

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.

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.

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.

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).