Sentences with phrase «own liquidity crisis»

Like any potential liquidity crisis the market becomes all about supply and demand at the time of crisis.

Nobody, insisted executive vice-president Bruce Maranda, could have foreseen the unexpected and widespread liquidity crisis that threatened Hunter's financial security.

To hold off a pending liquidity crisis, Wanda this week divested a 14 % stake in its commercial properties arm.

The bank's demise also heralded a liquidity crisis, with the threat that banks would not have enough money to meet their most basic obligation to depositors: allowing them to withdraw cash.

Next we acknowledge that the excess of assets is irrelevant but the country is only suffering from a liquidity crisis.

As I've noted many times before, a market crash is essentially a liquidity crisis in which the risk premium on stocks rises sharply.

Bill Gross thinks conditions are ripe for a significant liquidity crisis in the markets, and he points a finger at his old firm for its potential to be at the center of the storm.

I can easily envision a crisis situation created by a bank liquidity crisis, but it's harder for me to picture a situation of transition towards a low growth one.

As such, facing a massive and immediate liquidity crisis, they would be in more need of a federal bailout than before the bankruptcy legislation was seriously mooted.

Such structural improvements protect the financial system by making it less likely that banks will suffer liquidity crises or that such crises will spread contagiously from one institution to another (see below).

Having more resilient banks with sufficient capital and liquidity reduces the probability of widespread liquidity crises.9 That would help make market - making more robust, though probably at lower levels of activity in normal times.

Energy bonds have had a rotten 10 days, and banks seem to have a lot of hung energy loans, so maybe there's your liquidity crisis.

Recall that Gary Gorton provides evidence that many of the CDOs and MBS were not subprime, but when the market panicked a liquidity crisis became a solvency crisis.

The proximate cause of death for virtually every defaulting junk bond is a liquidity crisis occasioned by either an inability to generate enough cash to service debt, or an inability to refinance maturing debt.

On November 13, 2008, gold touched $ 698.20 at the height of the liquidity crisis.

If bond - investor concern turns to panic, a corporate - bond liquidity crisis could result.

This caused a banking liquidity crisis, in which banks became unwilling to lend to each other.

From loan ETFs to loan mutual funds, an investor stampede out of loan funds could cause a liquidity crisis as managers are unable to sell the underlying loans as fast as redeemers demand cash.

Video below on Camp Kotok attendee Josh Rosner, the Chief Economist and Strategist at Graham Fisher - he is worried about a potential liquidity crisis: «The last crisis was obviously a credit crisis that ended up as a liquidity crisis..

High levels of leverage can lead to forced selling and a liquidity crisis, which turns an ordinary downturn into a crash.

«They have a liquidity crisis, they don't have enough money..

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.

What could trigger a liquidity crisis for loan funds?

Details of just how severe Puerto Rico's short - term liquidity crisis has become were outlined in the Governor's written statement.

Based on current information, «the GDB, which faces its own liquidity crisis, is not expected to be able to make the payment,» to its bondholders, the statement added.

Puerto Rico's governor, Ricardo Rosselló, is essentially begging Congress for help: «In addition to the immediate humanitarian crisis, Puerto Rico is on the brink of a massive liquidity crisis that will intensify in the immediate future,» he wrote in a letter Saturday to congressional leaders.

For over a year, in other words, the Fed reacted to a growing liquidity crisis not by taking steps to boost credit in general, but rather by reallocating the existing supply of credit towards particular, troubled firms — a move George Selgin examined (and criticized) in detail in a recent post on this blog.

Currently, electronic corporate bond trading has not only evolved to become an essential component for secondary trading, eTrading is considered by many to be the panacea for resolving the perceived corporate bond liquidity crisis.

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.

What was supposed to be a liquidity crisis soon turned into a full - blown solvency crisis due to the lack of a lender of last resort, or to be more precise: the unwillingness of the European Central Bank (ECB) to fill this void.

Also, the bankruptcy of Lehman was much smaller compared to the liquidity crisis that AIG experienced, so it's not surprising (and it wasn't surprising then), that AIG was extended credit and not Lehman.

Over the past year, a string of banking institutions have found themselves in such a «liquidity crisis»: unable to convince the market they can honour their promises to pay back money they owe.

As Ed Studzinski notes, below, those declines were occasioned by a panic over Chinese stocks which triggered a trillion dollar capital flight and a liquidity crisis.

As Harvard historian Niall Ferguson observed last week, «Only somebody who studies financial history could say, as I was trying to say, «Look, something as big as the liquidity crisis of 1914 or as big as the banking crisis of 1931 is imminent.»

That provides critical local market knowledge and assures bids when a liquidity crisis looms.

As for the Citi product, they should ask the question, «who would be willing to part with liquidity during a liquidity crisis?»

How could an investor in California's municipal bonds be comforted by a company that during a potential liquidity crisis might find the capital markets closed to it, versus the nation's largest state with its obvious ongoing taxing authority?

Indeed, at the time, you will hear the improvident squeal that they «don't have a solvency crisis, but just a liquidity crisis!

The sector has been both volatile and profitable in the face of massive legislative overhauls, credit and liquidity crises, stubborn unemployment numbers, record low mortgage rates and a housing glut.

As for the liquidity crisis, I think the pain will be prolonged.

We can not be sure that last year's liquidity crisis was anywhere nearly as bad as advertised.

SemGroup's financial difficulties were disclosed by its publicly traded affiliate SemGroup Energy Partners LP last week, when it warned that a liquidity crisis at its parent could lead to bankruptcy.

Bright guy, though the eventual crisis was a liquidity crisis, and not a hedging crisis.

Most financial crises are liquidity crises, and can be solved by having a large amount of high quality unencumbered assets.

Sometimes this happens in advance of a debt refinancing, leading some politicians and bureaucrats to say the forever bogus phrase, «This is not a solvency crisis, this is a liquidity crisis.»

With the recent liquidity crisis in the subprime market, the formerly red hot housing sector has finally started to cool off.

Suppose the economy goes through a wrenching liquidity crisis, where credit suddenly becomes unavailable, and the commercial paper markets (the typical source of liquidity for corporations) and the bank lending markets both freeze.

In the days when banks were the dominant intermediaries, a credit crunch or liquidity squeeze manifested itself in the inability of banks to borrow; a lender of last resort that targeted banks was the right vehicle for dealing with liquidity crises and credit squeezes in that set - up.

I'm not saying that the covered bond market is impervious to liquidity crises, but banks have to fund somewhere, and covered bonds have proven more reliable and cost effective than pretty much any other wholesale funding source.

As Roubini explains, we're facing an insolvency crisis, not a liquidity crisis.