Sentences with phrase «of illiquid securities»

A Fund might be unable to dispose of illiquid securities promptly or at reasonable prices and might thereby experience difficulty in satisfying redemption requests from shareholders.

During these times, holders of illiquid securities may find themselves unable to unload them at all, or unable to do so without losing a lot of money.

Finally, closed - end funds are allowed to invest in a greater amount of illiquid securities than open - end mutual funds.

Not exact matches

Specifically, a sudden expansion of financial liquidity in the world's leading banking centers — whether an increase in British gold reserves in the 1820s or the massive transformation in the 1980s of illiquid mortgage loans into very liquid mortgage securities, or some other structural change in the financial markets — has been the catalyst behind every period of globalization.

Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economiSecurities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economisecurities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.

Anyone who has traded relatively illiquid securities — homes are extremely illiquid most of the time — knows exactly what I'm talking about.

If stocks do 10 % going forward and a hedge fund that charges 2 and 20 takes 3 % of your money in fees you've only got 7 % left, plus it's leveraged, holds illiquid securities, etc..

Pluris» proprietary LiquiStat database includes valuation data from recent sales of illiquid assets: restricted stock, warrants, options, convertibles, auction rate securities, structured products, bankruptcy claims, private company stock, and limited partner interests.

As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and sell illiquid securities because of the difficulty of trading, and the problem of moving the market away from you with a large order.

If you want to learn the microstructure of markets, there is no better training ground than with illiquid securities.

It is likely that the investment banks of our world, together with those they deal with, have marked illiquid securities to their own advantage.

And if you hold a lot of any security, the position is illiquid.

The Fund's units represent illiquid securities of an unlisted closed - end fund, are not listed on any securities exchange or traded in any other market, and are subject to substantial limitations on transferability.

Illiquid asset Immediate - or - cancel Income bond Income statement Indenture Index Indication of interest Individual Retirement Account (IRA) Industrial revenue bonds Inflation Inflation rate Initial public offering Inside market Insider Instinet Institutional investor Intangible drilling and development costs Integration Interbank market Interest Intermarket Trading System (ITS) Interpositioning In - the - money Intrastate offering Intrinsic value Introducing broker / dealers Inventory Inverted head and shoulders pattern Investment Investment adviser Investment Advisers Act of 1940 Investment banker Investment Company Investment Company Act of 1940 Investment contract Investment grade securities Investor brochure In - whole call IOC IPO Issue Issuer

As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and sell illiquid securities because of the difficulty of trading, and the problem of moving the market away from you with a large order.

Following the distribution, a number of smaller, illiquid securities observed enormous selloffs — causing a massive imbalance in supply and demand, and resulting in a precipitous decline in the market value of certain companies.

Investments in illiquid securities pose risks related to uncertainty in valuations, volatile market prices, and limitations on resale that may have an adverse effect on the ability of the fund to dispose of the securities promptly or at reasonable prices.

That's an increasingly popular sort of closed - end fund will allows the managers to invest in illiquid securities by restricting the ability of fund investors to sell their shares.

For instance, there are companies that specialize in securitizing the mortgages (a way of turning an illiquid asset into an investable security), as well as groups that focus on packaging cash from hundreds of investors and turning it into developer loans (also known as syndicated mortgages).

Does the fund deal in illiquid securities that would justify the lack of liquidity of the fund itself?

Trading illiquid securities can make sense in certain scenarios to obtain a specific type of exposure.

On the other hand, illiquid markets, such as those for thinly traded fixed income securities and small cap stocks, can see bid - offers spreads of over 1 % of the asset's price.

On Grantham's comments: my comments Saturday night are pertinent here for two reasons — anyone selling illiquid CDO tranches, subordinated mortgage bonds, etc., immediately prior to the crisis would find two things: 1) the bids were non-existent or really poor, and 2) if the trade did take place, it would be at levels that reset the pricing grid for that area of the market a LOT lower, leaving the remaining securities looking worse, and a diminution of GAAP equity.

There are various reasons why an ETF might not be able to replicate an index perfectly, for example it might be too costly to correctly replicate very illiquid securities that are part of an index.

Each Fund may invest up to 15 % of its net assets in illiquid investments (i.e., securities that are not readily marketable).

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.

Dr. Wade Pfau's new book, Reverse Mortgages: How to use Reverse Mortgages to Secure Your Retirement explains how, when used correctly, reverse mortgages can provide an added layer of security for retirees and allow them to enjoy retirement more by gaining liquidity from an illiquid asset.

Some securities may be illiquid because of legal restrictions, the nature of the investment, or certain other features such as guarantees or a lack of buyers interested in the particular security or market.

Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations.

Illiquid security under procedures approved by the Board of Directors and according to the Fairholme Funds» liquidity guidelines.

The Focused Credit fund, Mr. Barse's brainchild, came into the summer of 2015 with something like one third of its assets invested in illiquid securities, so - called «Level 3 securities.»

The Manager may determine the fair valuation of a security when market quotations are insufficient or not readily available, when securities are determined to be illiquid or restricted, or when in the judgment of the Manager the prices or values available do not represent the fair value of the instrument.

However, caviling aside, there is some new information in the piece, namely, that funds that hold a fair number of positions in illiquid securities appear to seek out favorable valuations to turn months with negative returns into positive results:

A manager under pressure to sell a million dollars» worth of corporate bonds might well find that there's only a market for two - thirds of that amount, the remaining third could swiftly become illiquid — that is, unmarketable — securities.

Factors which may cause the adviser to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a «significant event») since the closing prices were established on the principal exchange on which they are traded, but prior to the Fund's calculation of its net asset value.

Investing in Rule 144A securities or Section 4 (a)(2) commercial paper could have the effect of increasing the amount of a Fund's assets invested in illiquid securities if institutional buyers are unwilling to purchase such securities.

The Staff of the SEC has taken the position that purchased dealer options are illiquid securities.

A Fund may invest up to 15 % of its net assets in illiquid securities.

In the case of illiquid or extremely volatile securities, placing a market order may result in a fill price that significantly differs from $ 175.

Illiquid securities carry higher risks than liquid ones, which becomes especially true during times of market turmoil when the ratio of buyers to sellers may be thrown out of balance.

Restricted or illiquid securities, such as private placements or non-traded securities are valued via inputs from the adviser valuation based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances).

Just beware slick marketing pitches designed to make you feel inferior because you're not one of the «cool kids» investing in illiquid private securities.

With respect to the limitation on illiquid securities, in the event that a subsequent change in net assets or other circumstances cause a fund to exceed its limitation, the fund will take steps to bring the aggregate amount of illiquid instruments back within the limitations as soon as reasonably practicable.

«The Continued Risk of Troubled Assets», the latest report from the Congressional Oversight Panel (COP), points out the ongoing risks that commercial and residential mortgage - backed securities (CMBS and RMBS, respectively), along with other illiquid troubled assets, pose for financial institutions and the financial system.