This option is recommended as a way to reduce premiums when the only point
of liquidity concern is upon the second spouse's death, typically to cover estate taxes.
I've stayed away because
of liquidity concerns as well as the management issues.
A fund with this exposure can certainly lose money during a 2008 - type crisis because
of liquidity concerns, but it won't suffer anything like the carnage we saw with junk bonds.
Not exact matches
«Current
concerns in the financial markets center around the absence
of liquidity and the effect it might have on future market prices,» Janus» Bill Gross said in June.
Soon after,
concerns about
liquidity and asset quality put many other institutions at risk, including Bank
of America and Citigroup, which took billions in loans from the government to weather the chaos.
He said BlackRock is not overly
concerned about
liquidity in the treasuries market, but is nonetheless keeping on top
of everything that's going on — things like the emergence
of high - frequency trading in the interdealer market.
The letter went on to highlight one
of the key
concerns in the market —
liquidity, or the lack thereof.
Although it is fair to say that the recent uptick in volatility has in part reduced earlier
concerns about prolonged low volatility and associated reach - for - yield behavior, it has placed added focus on the resilience
of liquidity, particularly in markets, such as the market for corporate bonds, that may be prone to gapping between
liquidity demand and supply in stressed conditions.
And more
concerning,
liquidity has proven to not be resilient, as seemingly ample
liquidity has been an illusion during times
of stress, exacerbating market moves and contributing to volatility.
There are
concerns, however, that while
liquidity is improved in normal times, HFT is causing changes in the ecology
of the market which result in a worsening
of liquidity in stressed circumstances.
The credit rater cited «the significant shortfall in the production rate
of Tesla's Model 3» and
liquidity pressures as two chief
concerns.
Private equity and alternative investments could fall into disfavor as a result
of concerns about
liquidity and short - term performance.
Concerns with
liquidity could cause such public pension funds to reevaluate the appropriateness
of alternative investments.
Beijing is trying to boost domestic
liquidity in the hopes that this will generate stronger domestic demand, but expanding
liquidity fuels capital outflows, and these put downward pressure on the currency, while increasing PBoC
concerns about the monetary impact
of money leaving the economy which, as an article in last week's FT argues, might be worse than we think.
That means its high fees, though standard for this space, are less
of a
concern than
liquidity.
Christina Padgett, head
of leveraged finance at Moody's Investors Service, said
liquidity concerns are not a major problem for the high - yield portion
of the market now, but there are challenges for the future.
One caveat you'll find on most sites is something like this: «An investment involves a high degree
of risk including fluctuating values
of real property, lack
of liquidity, environmental
concerns, legal and regulatory risks, and other risks.»
The People's Bank
of China has reduced reserve requirements, infused the markets with additional cash to combat
liquidity concerns, and attempted to stem the flow
of investment capital leaving the country.
Given moral hazard
concerns, regular
liquidity - providing activities are likely to remain central banks» main line
of defence in stressed environments.
Concerns around
liquidity, security, counterparty risk and custody
of assets have so far prevented institutional investors from buying Bitcoin on decentralized exchanges.
Because Bitfinex gets a lot
of its
liquidity from Tether, many people are
concerned that the exchange might not be as financially secure as it claims to be.
Here, we take a look at the more recent June «Bond Market Group» minutes; the main
concern was that, despite a functioning JGB market, there has been a notable increase in bid - ask spreads and general decrease in
liquidity since the start
of aggressive «QQE» last October.
In addition to expectations about monetary policy,
liquidity concerns of banks related to Y2K may have influenced the pattern
of short - term interest rates in recent months.
With economic growth returning to the developed world, the end
of years
of quantitative easing and easy monetary policy is in view; inflation
concerns are reviving, guaranteeing rising interest rates along with tightening
liquidity.
There are no
liquidity concerns, as you are not purchasing any underlying assets and platforms / brokers can create any number
of different options which provides plenty
of variance for traders to choose from.
There were several possible catalysts suggested for this spike in
concerns about a favorable outcome
of the debt ceiling negotiation, which has to be concluded ahead
of the Treasury's X Date, now expected as early as October 1: some cited Steven Mnuchin's interview on CNBC, in which the Treasury Secretary said that the additional spending needed to help Texas recover from Hurricane Harvey may reduce the amount
of time Congress has to increase the federal debt limit; another possibility was month - end
liquidity needs and relative positioning across the curve.
WND previously reported
concern that the decision
of the Federal Reserve to quit publishing a traditional index, «M3,» a broad measure
of the money supply, signaled a decision to pump the economy with excess
liquidity.
While the individual banks
concerned were more liquid, this sort
of behaviour tended to reduce
liquidity of the rest
of the system.
In order to alleviate
liquidity concerns the Bank
of Japan first introduced zero interest rate policy (ZIRP) in 1999 and then launched quantitative easing (QE) in March 2001.
Yet the biggest driver
of institutions» use
of bond ETFs is their
concern over
liquidity, cited by 80 per cent
of respondents in the Greenwich Associates study.
Adding to the
concerns are other economic problems including a high unemployment rate
of over 25 %, the recent demise
of the country's VBS Mutual Bank amid a «severe
liquidity crisis,» as well as the highest rate
of economic crime (77 %) in the world, according to PwC's biennial Global Economic Crime Survey.
«
Concerns around
liquidity, security, counterparty risk and custody
of assets have so far prevented institutional investors from buying bitcoin or decentralized exchanges.»
While the [EXCHANGE] is open for trading in the Shares for a limited period each day, the Bitcoin Exchange Market is a 24 - hour marketplace; however, trading volume and
liquidity on the Bitcoin Exchange Market is not consistent throughout the day and Bitcoin Exchanges, including the larger - volume markets, have been known to shut down temporarily or permanently due to security
concerns, directed denial
of service attacks and DDoS Attacks and other reasons.
Absent typical capital market investor
concerns regarding return horizons and financial
liquidity, the Federal Government can become the «patient investor» whose long - term view
of asset returns enables the project's non-Federal financial partners to meet their investment goals, allowing the borrower to receive a more favorable financing package.
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).
Here's my
concern — having carry traders absorb excess
liquidity that the Fed has put out is a waste
of Fed resources, and indicates that Fed policy is too loose.
My
concern with such a small company (market cap
of $ 21 million), is that there is a lack
of liquidity and the stock has a high beta at a time when the overall market has shown signs
of weakness.
While we all know past performance is not indicative
of future performance, in times
of record redemptions, why is the dialogue focused on
liquidity concerns versus
liquidity metrics?
The Financial Industry Regulatory Authority (FINRA) cited senior loan
liquidity concerns in their January letter, stating ``... these loans could face
liquidity challenges if a significant number
of investors make redemption requests at the same time.»
If the «crash» you worry about is a dissolution
of the euro, then the main thing you should
concern yourself with is
liquidity.
If we run into immediate
liquidity concerns and we are only holding highly volatile stocks, it's more likely that a lot
of them will be selling at prices where we won't want to sell.
The largest ETFs continue to gain share (given scale matters greatly in the passive world), which raises a
concern of what will happen when flows eventually leave these funds (as they always do), while the
liquidity mismatch has largely been untested since it has become such a large percent
of the market.
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.
Another issue that is
of concern to some market observers is the lack
of liquidity, particularly for ETFs, in times
of stress.
Long - term investors would care more about the lower fees but traders would be primarily
concerned with
liquidity and low bid / ask spreads, not a MER difference
of a few tenths
of a basis point.
Longer - term funding arrangements to support the operations
of large funds, including investment activity, reduce
liquidity concerns and re-investment risk.
In the wake
of the near collapse
of U.K. mortgage lender, Northern Rock (NRK.L: Quote, Profile, Research), during last summer's credit and
liquidity squeeze in world markets, McCreevy also expressed
concern about the lack
of regulatory framework in Europe for dealing with bank failure.
The Bank
of Canada also noted that in its latest assessment
of the financial system, a lack
of «
liquidity» was one its bigger
concerns.
In my view, no sooner will all
of this «tough love» leave the lips
of Fed governors than the Fed will be forced to announce some novel emergency «
liquidity facility» to address a fresh round
of credit
concerns.
Any
concerns about the
liquidity of your shares?