Certainly large investors forced to remain in the partnership because
of liquidity issues (not a lot of units are traded daily with respect to the number outstanding) might object that the liquidity discount afforded management is out - of - place.
This raises all kinds
of liquidity issues.
Not exact matches
It's an
issue experts on both sides
of the border — including at the Bank
of Canada — have been warning investors about for a few months now: There's an alarming lack
of liquidity in the credit market.
In September 2008, AIG experienced serious
liquidity issues (despite its $ 1 trillion balance sheet) when it couldn't post $ 20 - 25 billion
of liquid collateral related to credit default swap contracts written by one
of its subsidiaries.
Marks wrote than when he told Wintrob that he didn't think the
issue of liquidity was particularly important or profound, Wintrob said:
And when you think about why that
liquidity isn't provided earlier, it just ends up being a bunch
of procedural
issues that are easily fixable.
At some point, all businesses need a good accountant — one who is experienced in financial analysis and who can help you navigate through this
issue of liquidity.
The
issue of bond market
liquidity has been a consistent theme over the past years or so with financial executives such as JP Morgan CEO Jamie Dimon, Blackstone CEO Steve Schwarzman, and Oaktree Capital's Howard Marks weighing in on the
issue and generally pointing the finger at a lack
of liquidity exasperating moves in financial markets.
«Our fixed income team recognized early that the industry landscape was changing and that those who could effectively address
issues such as lack
of liquidity, price transparency, and efficiency, would have a competitive advantage,» Switzer saidin the statement.
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.
However, investors
of junk bonds should note the implications and risks that are involved with investing in bonds that are
issued by companies with
liquidity issues.
so now the
issue is whether the bond market (or macro hedge funds) eased too much thinking the Fed would choke off
liquidity and now is staring at still a weaker dollar and high commodity prices indicating an elevated level
of excess
liquidity.
SALT Lending has
issued $ 40 million in asset - backed loans that are aimed at investors in cryptocurrencies to give them a bit
of liquidity without the need to sell off assets.
In this context, one
issue that is worthy
of further analysis is that
of liquidity.
«With the Chinese system, it's easier to deal with a
liquidity issue — the money can't go out,» said Chang Chun, the executive dean
of the Shanghai Advanced Institute
of Finance at Shanghai Jiao Tong University.
The stock
of government debt on
issue, both Commonwealth and state, is well short
of the
liquidity needs
of the banking system.
«It is driven by the appetite
of founders on one side to bypass the traditional fundraising process with VCs and also avoid dilution, and on the other hand, by a lot
of new investors looking to invest in new startups via a mechanism (
issuing tokens) that has
liquidity and using crypto.
But at the heart
of it, these
liquidity management
issues are very similar to those facing a bank.
The governor said he
issued an executive order Friday to halt the erosion
of the bank's dwindling
liquidity by allowing withdrawals only to fund necessary costs for health, public safety and education services.
(a) Share
of total Australian dollar assets (per cent), subcomponents are the share
of liquid assets (b) While deposits with other banks are a store
of liquidity, they do not contribute to the stock
of liquidity held by the banking system as a whole, since the recipient banks will, in turn, need to hold additional
liquidity against these deposits; consequently, they are excluded from this table (c) Includes Commonwealth Government Securities and securities
issued by the states and territories (d) Includes notes and coins, Australian dollar debt
issued by non-residents and securitised assets (excluding self - securitised assets)
Part
of the
issue could be due to the lack
of liquidity in Asian Pacific FX at certain times.
With approximately 8,000 listed
issues (excluding European Structured Products), NYSE Euronext's equities markets - the New York Stock Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca - represent one - third
of the world's equities trading, the most
liquidity of any global exchange group.
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 economic outlook.
Each month, Palhares and Richardson sorted corporate bonds into quintiles based on each
liquidity measure and computed the return
of a long / short portfolio that buys the least liquid bonds (i.e., smaller
issue sizes, higher bid / ask spreads, lower trading volume, higher price impact or higher frequency
of zero - trading days) and sells the most liquid bonds (i.e., larger
issue sizes, smaller bid / ask spreads, higher trading volume, lower price impact or lower frequency
of zero - trading days).
These will either be severely restricted or prohibited: Higher priced, more complex products that have
issues of liquidity and lack
of transparency, such as non-publicly traded REITs, variable annuities, proprietary products or limited partnerships
of certain types.
The new -
issue bond market is expanding (Shin (2013)-RRB- and assets under the management
of investment funds that promise daily
liquidity are growing rapidly - as suggested by the increasing presence
of exchange - traded funds in corporate bond markets in recent years (see also Box 2).
This could make market
liquidity more fragile in the short term, especially in the current low interest rate environment, in which new -
issue volume and the participation
of interest rate - sensitive investors have increased.
In the debate between stocks versus real estate as a better investment, a common
issue that comes up is real estate's lack
of liquidity, and therefore inferiority.
With a lack
of liquidity already an
issue, a downturn in trading volume over the summer months could contribute to further volatility.
Many governments and regulators have
issued sufficient risk warnings — including on
liquidity risk — on virtual currency usage, or like the Government
of China, banned them from trading.
In addition to near zero interest rates, central banks created excessive amounts
of money by
issuing trillions
of dollars
of bonds, e.g. QE1, QE2, QE3, QE4, etc. pushing unprecedented amounts
of newly created money into global markets to contain the growing deflationary threat; and, while it failed to contain deflation, the excessive
liquidity is now circulating in markets with no place to go, akin to moribund monetary edema.
Greek Finance Minister Yanis Varufakis confirmed on Friday that negotiations are being conducted with Greece's European partners to discuss ways
of addressing these
liquidity problems, while expressing confidence that the parties will eventually reach a solution, arguing that the whole
issue was about a «small amount»
of money.
We have now expanded to new markets and trading vehicles, which means that we can increase our client base by a limited amount without fear
of liquidity being an
issue for sometime.
This market may also have
liquidity issues, meaning that it may be hard to find a buyer during a negative market event — which could lead to price volatility or make it hard to determine a fair price for one
of these securities.
Under the EziBuy proposal, class action shareholders would receive a convertible note convertible into shares estimated to be worth between $ 6 million and $ 20 million and
issued at the time
of a
liquidity event such as an IPO or trade sale
of EziBuy.
These premia must do, as I said, with default, with
liquidity, but they also have to do more and more with convertibility, with the risk
of convertibility [e.g. a country now using the Euro makes the political choice to leave the Euro and
issue its own new national currency.
In measured tones, tell the public that
liquidity is no
issue, and that you are more than capable
of meeting all obligations.
Disadvantages: depends on local
liquidity i.e. cash - in locations where the buyer is located; transaction size can be limited due to security,
liquidity, or regulatory
issues; fees charged can be higher to offset the operational costs
of dealing in cash.
In light
of his refusal to carry out the duties
of a central bank and act as lender
of last resort when Greek banks run out
of cash, Mr. Varoufakis has said that: «If necessary, we will
issue parallel
liquidity and California - style IOU's, in an electronic form.
Variable Rate Demand Note Inventory and Remarketing PNC has a portfolio which approaches $ 8 billion and includes
issues enhanced by letters
of credit from investment grade commercial banks and insurance companies with bank
liquidity facilities.
The proliferation
of these products and strategies has brought different risks to investors, including
liquidity issues, expensive valuations and regulatory changes.
Banks may be willing to pay higher prices for more liquid, on - the - run (most recently
issued) bonds as part
of a
liquidity management program.
But, adding up the sheer volatility
of cryptocurrencies with
liquidity issues facing this infant and unregulated market, it does not take long to figure out why institutional players do not see cryptocurrencies as a serious contender for an investable asset class.
A recent program sponsored by the Regulatory Compliance Association provided an overview
of the basic due diligence steps that such investors take with regard to investments with hedge fund managers, and focused on alignment
of interests, indemnification provisions,
liquidity, investor consent and the
issues raised when investing through or alongside separate accounts.
At
issue is whether Lehman's crisis was merely a temporary «
liquidity problem,» that time would have cleaned up much like BP's oil spill in the Gulf; or, did the firm suffer a more deep - seated «balance sheet problem» (negative equity), as Federal Reserve Chairman Ben Bernanke claims — a junk balance sheet, composed
of assets that not only had no buyers at the time, but had no visible likelihood
of recovering their market price even after the $ 13 trillion the Treasury and Federal Reserve have spent to bail out Wall Street.
Although market trend remains positive, the shorter term
issue of market
liquidity is now becoming a question mark in terms
of Fed policy.
For coverage
of HFA's May 2016 Global Regulatory Briefing panel, see our two - part series: «Best Ways for Hedge Fund Managers to Approach Regulation» (May 12, 2016); and «Cybersecurity, AML, AIFMD, Advertising and
Liquidity Issues Affecting Hedge Fund Managers» (May 19, 2016).
Industrial firms bypass the banking system by financing new capital investment out
of their own retained earnings, and meet their
liquidity needs by
issuing their own commercial paper directly.
Of course I have saved the issue of liquidity for last, for very obvious short term reason
Of course I have saved the
issue of liquidity for last, for very obvious short term reason
of liquidity for last, for very obvious short term reasons.
Fortunately, a string
of bellwether exits (AirBnB, Uber, Lyft, Palantir, etc.) could quickly cure venture
liquidity issues by bringing dollars back to LP's, opening the gates for companies sitting on the sidelines, and providing the market with more public acquirers.