Instead the liquidity of an ETF depends
on the liquidity of the securities that make up an ETF.
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?
We all know that the massive reduction in dealer inventories and the cost of capital has had a huge negative impact
on liquidity in the corporate bond market.
A less common case might be as follows: In the case of a large company, the issuance of new shares can have a positive
effect on liquidity.
It seems likely that the drop in settlement balances owes importantly to an increased focus by banks
on liquidity management; this is, of itself, highly desirable.
Currently no tech companies are «on the road» and the
premium on liquidity implies a bigger discount for IPO's if and when they will go public.
My new financial planner reminded me with a smile that my hubby and I may have made some great real estate moves, but we dropped the
ball on liquidity.
But successful investors focus on finding investments that you can stick with indefinitely, so they put a lower
priority on liquidity.
It might not have a sufficient impact
on liquidity unless the government requests that banks spend at least a portion of the money they received to originate loans, he notes.
All investments fight the enemy of time, and most have a cost associated with them, along with some
impact on liquidity.
Systemic risk stems from a
call on liquidity at financial firms that borrow short and lend long for their own accounts.
Sorry, that's what leads to financial crises, and creates the
run on liquidity when the value of long dated assets falls, and savers want their money back.
Our BEV reflected a non-marketability discount of 10 % based
on a liquidity event expected to occur within approximately one year.
I read with interest the SEC rule
proposal on liquidity risk management for mutual funds and exchange - traded funds (ETFs).
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.
The first is that it's failure would lead to a run
on liquidity at similar companies duewith those of to a lack of confidence.
The game list continues to grow as more ideas are implemented on the blockchain capitalizing
on the liquidity so many have in these markets.
The Federal Open Market Committee and the European Central Bank are not only no longer offering a combined stimulus, they are a net drain
on liquidity for the first time since stimulus was first introduced by former Fed Chairman Ben Bernanke.
Managers must focus
on liquidity as well as solvency, which is the process of generating sufficient cash flow to purchase assets over the long term.
Mark - to - Market losses only don't matter if endowments don't face a call
on liquidity when assets are depressed.
He tries to explain how tokenization of traditional assets will have an impact
on liquidity across multiple asset classes in the coming years.
There is some level of constraint from the spending rules employed by the endowments, particularly since 2008 - 9, when a number of famous endowments came to realize that there was a liability structure behind them when they ran
low on liquidity amid the crisis.
«We've been
rallying on liquidity for the last six quarters,» he said, «but I'm starting to see liquidity drying up,» which suggests less money may be flowing into the market.
«With greater focus
on liquidity provision, and less reliance on lending income, our addressable market in FICC is fundamentally different than many of our peers,» Schwartz said.
I had to double up
on liquidity worries in both today's and yesterday's newsletters: You've got ICAP, JPMorgan and Deutsche Bank worrying about Treasury volatility, Gary Cohn and Anshu Jain worrying about bond fund liquidity, and Nouriel Roubini worrying about all sorts of liquidity.
Further, our enhanced focus
today on liquidity management across the range of firms we supervise has led to heightened management — and board of directors — attention to liquidity levels, liquidity risk management and liquidity stress testing.
Having talked about liquidity from the banking system's point of view, I will finish with a few
thoughts on liquidity in the superannuation (pension) system.
Immediate credit challenges include potential
draws on liquidity associated with rating triggers embedded in the city's letters of credit (LOCs), standby bond purchase agreement (SBPA), lines of credit, direct bank loans, and swaps [Oops — banks can and should pull the plug].
Some Australian conduits called
on their liquidity providers, although it appears that liquidity providers largely purchased ABCP rather than extending a loan.