I think that is true for two reasons: 1) we have a significant balance sheet, and can take
on illiquidity.
(Google it if there is no link)» Taking
on illiquidity is not a free lunch.
But this is only an artifact rooted
on illiquidity.
Based
on the illiquidity illustrated during these time periods traders using market orders can experience slippage, or gaping in prices that can have a material impact on your final execution price.
If stocks provide a better return with better liquidity and bonds provide a similar yield with better liquidity (and collateral), why take
on the illiquidity at all?»
Not exact matches
The region's markets were closed for May Day
on Tuesday, and that
illiquidity exposed them to global sentiment, dealers said.
The data in our report reveal that although investors in VC take
on high fees,
illiquidity, and risk, they rarely reap the reward of high returns.
The dollar was boosted by weakness in the pound ($ 1.3770 - $ 1.3656, 4 - month low, miss
on UK Manufacturing PMI) and in anticipation of a hawkish FOMC meeting statement tomorrow, and was exacerbated by the
illiquidity from today's May Day Holiday.
To deliver an
illiquidity premium we are focused
on what we believe to be best - in - class investments, giving you choice
on how to access Private Equity and how involved you want to be in the investment decisions.
Our investment - led process has been refined to focus
on high - conviction private equity strategies with risk - return profiles that have rewarded
illiquidity in the past, and where we believe that a supply and demand imbalance between the need for investment and available capital will persist in the future.
Interval funds,
on the other hand, have a higher level of risk, due to the
illiquidity of the fund.
Defaulting
on your loan is a result of
illiquidity.
If you can take
on a little
illiquidity on a quality company that is not well - known, that could be a good idea.
A skeptic, because many endowments were taking
on too much
illiquidity.
I've written at least two significant pieces
on endowment investing: Alternative Investments,
Illiquidity, and Endowment Management The Forever Fund Oh, toss in one more: Managing Illiquid As...
Illiquidity should be taken
on with caution, and with more than enough compensation for the loss of flexibility in future asset allocation decisions and cash flow needs.
After all, I have written:
On Alternative Investments and Alternative Investments,
Illiquidity,...
It made me more skeptical about arbitrage, leverage, and
illiquidity, at least to the degree that one has to be paid to take
on these risks.
You will note that he took units instead of cash for the accrued management fee in April, but he allowed himself a 15 % discount
on the unit price due to «
illiquidity» (he can't sell right away... but seemingly neither can we as the daily volume is quite low).
On December 10, 2007, the Fund notified the Company that conditions in the short - term credit markets had created a broad based perception of risk in non subprime asset - backed securities causing
illiquidity across the market which led to extreme pricing pressure in those securities.
The bid - ask spread
on these stocks, as a percentage of the stock price, is huge (20 - 25 %) and the
illiquidity can also cause large price changes
on trading — you push the price up as you buy and the price down as you sell.
On the bright side,
illiquidity is usually associated with small sizes, so it doesn't affect most of the market.
The bulk of the opportunities remain in undervalued, smaller, more illiquid situations that often represent average or slightly above - average businesses — these stocks, having largely missed out
on the speculative ride up, have nevertheless frequently been pushed down to absurd levels owing to their
illiquidity during a general market panic.
We often overestimate the good the complexity will bring, while underestimating the
illiquidity that it will impose
on finances.
Pay us with a good yield, and I will eat the
illiquidity risk
on behalf of my client.
These risks include: smaller market capitalization of securities markets, which may suffer periods of relative
illiquidity; significant price volatility; restrictions
on foreign investment; possible repatriation of investment income and capital.
Whether one should apply an
illiquidity discount at all when valuing SPLP depends
on what you think the endgame is for the LP.
On another front, consider
illiquidity.
The book has a firm hand
on what leads to risk / return among managers — Concentration, Directionality, Compelexity,
Illiquidity, and Leverage.
the vic writeup suggests an 18 %
illiquidity discount
on top of any discount related to the 15 % of ev stock purchase discount for management.
All the same, I still question the ability of two Fed vehicles to extract liquidity out of
illiquidity, and
on favorable terms.
The liquidity - taking strategies, however, do not fare as well
on a trade - cost - adjusted basis: both the large - cap and small - cap momentum strategies and the large - cap
illiquidity strategy lose their attractiveness.