Sentences with phrase «market liquidity»

When a lack of market liquidity causes a gap between the price at which you place a trading order, and the price you receive.

I've gotten a huge number of emails and questions on bond market liquidity in the last few months.

There's only a lot of secondary market liquidity on the $ 25 notes, so it doesn't scale up well.

Increasing compliance costs have had an immediate, negative impact on market liquidity as banks reduce their market making footprint or cut entire trading divisions.

Changes in market liquidity have a direct and strong impact on market performance.

Futures contracts enable traders and investors to profit from price movements and provide market liquidity through their trades without ever possessing the actual commodity being traded.

This provides a simple way to understand a lot of the worries about bond market liquidity as it relates to banks and corporate bonds.

Electronic platforms (if not single dealer - based) support market liquidity by providing participants immediate access to multiple dealers.

This is because of lower market liquidity, and demand fluctuations between industrial and store of value uses.

High market liquidity means that currency prices can change very quickly in reaction to the news as well as short - term events.

But there is no sound reason to exclude other entities from participating in the auction markets; and doing so will greatly reduce market liquidity.

Nevertheless, we consider what kinds of policies and market initiatives might help support market liquidity in the future.

The ability to sell loans to these investors is critical to maintaining mortgage market liquidity, which in turn, allows mortgage companies to continue originating new loans.

Has any financial story been more relentlessly covered in the last few years than the market's worries about bond market liquidity drying up?

Market liquidity depends on a variety of factors, including market structure and the nature of the asset being traded.

Will it continue to emphasize its ability to provide better market liquidity?

Furthermore, the fixed - income markets are experiencing a period of both extreme volatility and limited market liquidity, which has affected a broad range of asset classes and sectors.

Together, they look for new solutions to problems like shrinking market liquidity.

On the one hand, new liquidity providers are likely to have fewer incentives to support market liquidity under more stressed conditions, because they lack access to any ancillary revenues from their clients.

Aren't bond market liquidity concerns really just investor fears that other people will panic at the exact same time as they do?

At a time when fears are high about market liquidity comes a significant shift in the primary players in the corporate bond market.

The government may think that it is aiding market liquidity, but by providing guarantees, it is absorbing liquidity, and starving the markets that it does not guarantee.

Even many day traders only need the first and last hour to trade while prices are moving and the most market liquidity is found.

Market liquidity pools are available which helps to avoid low volume trading instruments that lack liquidity.

Following market liquidity was an aid to avoiding some of the crisis that was to come.

A lot of small publishers chose to cease their operations due to the arrival of new investors rendering several small publishers irrelevant and being unable to maintain market liquidity.

First, reduced market - making supply and increased demand imply upward pressure on trading costs, reduced secondary market liquidity, and potentially higher financing costs in new - issue markets.

Over the past few years, super low rates, lack of market liquidity, and the drying up of trading volume have reduced profitability for many buy - side firms.

Theory and empirical evidence suggests that investors require higher return on assets with lower market liquidity to compensate them for the higher cost of trading these assets.

This caused a reduction in market liquidity, as other market players were unwilling to trade on a normal two - way basis while these funds were selling aggressively.

The first step to understanding bond market liquidity is to first articulate what «liquidity» is as a construct.

Will it continue to emphasize its ability to provide better market liquidity?

Importantly, these trends are taking place just as demand for and dependence on market liquidity are on the rise.

Their readiness to immediately execute a trade supports market liquidity and facilitates price discovery.

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.

In their July 2015 paper entitled «Carry and Trend Following Returns in the Foreign Exchange Market», Andrew Clare, James Seaton, Peter Smith and Steve Thomas examine how market liquidity affects returns to currency carry and trend following strategies and test the benefits of combining these two strategies.

11 There seems to be more diversity in interest rate investing than in corporate credit investing, which makes the worries about Treasury market liquidity seem a bit smaller, even though the market is of course much larger.

His paper on stock market liquidity and corporate governance won the Best Paper Award in Finance in Canada (ASAC 2003) and was ranked among Top Ten Download Paper at the EFMA (European Financial Management Association) 2003 meeting and SSRN (Social Science Research Network).

I trust such an episode would not induce us to lose sight of the very important contributions hedge funds and new financial products have made to financial stability by increasing market liquidity and spreading financial risk, and thereby enhancing economic flexibility and resilience.»

Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.

It pointed to the continued presence of fragile fixed - income market liquidity as a key vulnerability in the overall financial system, while it repeats the risks of a sharp increase in long - term interest rates, stress from emerging markets like China and prolonged weakness in commodity prices.

In response to such a call from the G - 20 in Washington, D.C. last week, Germany's finance minister side stepped the issue and talked about the need for the ECB to start withdrawing its money market liquidity — i.e., whatever remains of a meager life support to economies crushed with 19 million people out of work and 3.6 million of young people unable to find jobs and make a living.

By offering strong evidence of mini flash crashes increasing transaction costs through widening the desired execution price between a market's buyers and sellers, while at the same time decreasing the number of opportunities to buy and sell in a market, Golub et al. [21] corroborated and quantified the intuition that mini flash crashes do indeed harm market liquidity.

In addition, concerns over bond market liquidity seem to have convinced investors to abandon crowded positions built up since the end of last year, when QE was first mooted.

Bank executives have complained that the current rule is confusing and difficult to follow, hurting market liquidity.