Sentences with phrase «of lesser liquidity»

«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.
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