«So for any given property, there is an increment
of lesser liquidity.»
Not exact matches
Marks arrived at more or
less the same definition
of liquidity as Hooper, writing that the way to think about
liquidity isn't to ask if there is a market for an asset, but whether you can quickly sell that an asset without taking a huge loss on it.
By shifting the risks away from banks and to asset managers, Gross argues that the risk
of herd behavior that causes a
liquidity event in markets has been shifted away from the professional investing class and to a more amateur,
less - informed, skittish class
of investor: the public.
By contrast, there has been some reduction in
liquidity in the segments
of these markets that have historically been
less liquid.
The low
liquidity levels are caused by a combination
of regulations, which make it
less attractive for big banks to hold inventories
of bonds for dealing, and new forms
of quick, computerised trading, which have the potential to move markets in times
of stress.
Regulators talk sometimes about regulating the big bond mutual - fund complexes as «systemically important» institutions, on the theory that
liquidity requirements, stress testing, regulatory oversight, etc. could make them
less vulnerable to herding and the shock
of redemption requirements.
International investing involves risks, including risks related to foreign currency, limited
liquidity,
less government regulation and the possibility
of substantial volatility due to adverse political, economic or other developments.
One very stylized fact is that corporate bid / ask spreads aren't that high, though they are higher than pre-crisis levels; instead the increased cost
of liquidity seems to be passed along in just
less trading rather than more expensive trading:
One possibility, he said, is that frequent traders laboring under the «illusion
of control» believe that they can respond easily to information and events during the day but can't do so as easily after hours, when there are far fewer market participants and
less money, or «
liquidity,» involved in trading.
Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size,
lesser liquidity and lack
of established legal, political, business, and social frameworks to support securities markets.
Non-commercial traders, or speculators, have always played a crucial role by providing
liquidity, but only ever made up
less than 30 per cent
of the market.
In terms
of liquidity, they are
less liquid than a checking account but more liquid than Share Certificates, or CDs.
but do places that accept non accredited investors like fundrise have
less liquidity for longer periods
of time?
Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets» smaller size,
lesser liquidity and lack
of established legal, political, business and social frameworks to support securities markets.
That means its high fees, though standard for this space, are
less of a concern than
liquidity.
1) not at the top tax bracket yet, thus
less expensive to have taxable dollars; 2) before 35, generally significant expenses such as house purchase, engagement ring, wedding, etc.; 3) keep
liquidity for potential opportunities — «cash is king»; 4) use after - tax dollars to buy RE and rent it out for another stream
of passive income, which is generally not taxable due to depreciation — could be a retirement vehicle in itself.
The company's founders and early - in investors get the
liquidity and huge gains, and most
of their wealth is
less sensitive to these public market variations.
Would this article be published if TSLAs market cap was 1billion instead
of ~ 50 billion.
Of course not.TSLA is much
less a story
of innovation and technology and much more one
of a stock where rampant speculation resulting from Central bank
liquidity has pushed its stock to levels completely unrelated to its prospects as a company.Its silly stock market valuation allows it raise cash to keep the charade going much longer than the economics
of its business would ever suggest.
Index futures, like the S&P 500 Index (NYSE: SPY), have become very popular as broader economic bets for day traders given their high level
of liquidity and
less stock - specific risk.
The average investment - grade (high - yield) bond trades on
less than 32 % (36 %)
of days over the prior six months —
liquidity in corporate bonds was considerably lower than in traditional listed equity markets.
Therefore, while cash generated from operations is our primary source
of operating
liquidity and we believe that internally generated cash flows are sufficient to support day - to - day business operations, we use a variety
of capital sources to fund our needs for
less predictable investment decisions such as acquisitions.
Even if part
of this decline was driven by a heightened
liquidity premium the implication is the same: it indicates an increased demand for highly liquid and safe assets which, in turn, implies
less aggregate nominal spending.
The longer the time frame
of investment, the
less need for
liquidity as compared to investing with a short - term time horizon.
This has led banks to use far
less of their own capital in global markets, which, in turn, has reduced secondary market
liquidity for many securities and removed some
of the more credit - worthy bank counterparties in these markets.
They entail significant risks that can include losses due to leveraging or other speculative investment practices, lack
of liquidity, volatility
of returns, restrictions on transferring interests in a fund, potential lack
of diversification, absence and / or delay
of information regarding valuations and pricing, complex tax structures and delays in tax reporting,
less regulation and higher fees than mutual funds.
What has been
less discussed, however, are the proposed changes to the Bank
of Canada Act that would ostensibly make it easier for the Bank to deal with
liquidity crises.
Most smart beta strategies have a higher level
of turnover than traditional market cap - weighted indexes, and a slightly
less advantageous
liquidity profile.
In spite
of the short - phrase fillip, the Conservative victory will probably give, the longer - time period image is
of a industry that is neither cheap nor expensive and a worldwide
liquidity backdrop that hazards getting to be much
less accommodating.
The combination
of low overnight ES balances and greater recourse to intra-day repos is a more efficient, and
less costly, approach to
liquidity management for banks, compared with the situation in July with relatively high ES balances and low intra-day repos.
Market participants will be looking to economic data as a gauge
of whether the Fed and, to a
lesser degree, other central banks will provide
liquidity to stoke price appreciation, Chandler says.
Investments in developing markets involve heightened risks related to the same factors, in addition to risks associated with these markets» smaller size,
lesser liquidity and the potential lack
of established legal, political, business and social frameworks to support securities markets.
Given the growing scarcity
of available collateral among bond dealers, a collapse in repo
liquidity, and increasing frequency
of delivery failures, all
of which is shorthand for a bond market that is becoming
less liquid — it seems that QE has begun to create, rather than relieve, meaningful constraints.
Most
of my clients make $ 250K or so a year and have 7 figure net worth but often a lot
less in
liquidity.
Much
of the debate over the past years about the benefits and the costs global specialization, primarily the rapid advance
of China as a major manufacturing center has been
less about the financial costs — the $ 12 trillion dollars
of additional
liquidity that the US consumers offered to the world (the cumulative US trade deficit from 1990 through 2015 compared to the over $ 3 trillion dollars in trade surplus run - up by China over this same period — and more in terms
of the jobs lost and the impact
of foreign products on American wages in manufacturing.
Now Bank B or C, who were more or
less surviving the depression, find that suddenly they have lost a lot
of liquidity, and that may find trouble returning people deposits.
Most smart beta strategies have a higher level
of turnover than traditional market cap - weighted indexes, and a slightly
less advantageous
liquidity profile.
If you're
less concerned with instant
liquidity and want maximum interest earning power with NCUA protection up to the $ 250,000 federal limit, consider Business Certificate
of Deposit (CD).
The key is patience and diligence with CEFs and knowing that
less than 2 %
of the US population owns a CEF (vs. 40 % for an open - end fund), 85 %
of the shareholders for CEFs are not institutional investors and only 7
of the 598 US listed CEFs trade more that $ 10M a day in
liquidity as
of last Friday's close.
Structural changes in the economy, whether by the government or through private channels will shift where
liquidity goes, but it will not change the amount
of liquidity, unless the changes are so severe that the economy itself becomes much
less productive.
If you take advantage
of this
liquidity to trade in and out
of ETFs — or to sell them short — you can wind up losing money, or making
less than you would by simply holding on to the top ETFs.
Liquidity becomes
less of an issue if you also manage to fund a decent sized rainy - day fund (6 - 9 months
of living expenses).
The BMO fund's fee is slightly
less than XIU, but that difference may be outweighed by higher trading costs due to the lack
of liquidity.
Liquidity providers in option markets prefer to hedge mostly with other options, hedging residual greeks with other assets such as the underlying, volatility, time, interest rates, etc because trading costs are lower since the two offsetting options hedge most
of each other out, requiring
less trading in the other assets.
The criteria include: (1) adequate size with respect to revenue, (2) strong financial condition with respect to
liquidity, (3) reasonable earnings growth over a decade (4) modest price - to - earnings (P / E) ratio
of 15 or
less, (5) economical price - to - book (P / B) ratio
of 1.5 or
less, (6) 20 years
of consistent dividend payments to insure the likelihood
of continuation, and (7) earnings stability vis - a-vis the absence
of any losses over the previous decade.
The impact I am more concerned with is in the concentration
of assets into
less and
less differentiated products and the fact that ETFs have become a
liquidity provider (when flows are positive) in areas
of the market that are illiquid.
Stock investing has the advantage
of liquidity, meaning I can change my mind and sell the stock if I need to free up the cash more quickly and with
less hassle than selling my real estate.
Mostly used by investment professionals, extended trading hours often have low
liquidity rates and wider spreads between bid and ask prices, resulting in risks
of having orders executed at a
less favorable price than during regular trading hours.
Investments in developing markets involve heightened risks related to the same factors, in addition to risks associated with these companies» smaller size,
lesser liquidity and the potential lack
of established legal, political, business and social frameworks to support securities markets in the countries in which they operate.
Given the
liquidity of government bonds, tracking errors will be
less of a problem with ETFs that represent government bond indices.
There are risks involved with dividend yield investing strategies, such as the company not paying a dividend or the dividend being far
less than what is anticipated, as well as market risk, price volatility,
liquidity risk, risk
of default, and risk
of loss.