Thus they moved to
sell illiquid investments, and take a haircut on them.
Not exact matches
Turning
illiquid private - company stock into cash by
selling shares to the public required engaging a top
investment bank, which typically wouldn't take a company public until it had had five profitable quarters of increasing revenue.
The former can make sense, Weckbach notes, when one of their multiple accounts includes an
illiquid investment (such as a stock position in a small company) that's not easily
sold in order to raise funds for an RMD.
Examples of
illiquid alternatives include things like private equity or private debt holdings —
investments that aren't easy to
sell.
An
investment like an Options contract could become completely
illiquid, meaning that there is literally no one who would like to buy a contract that you want to
sell.
Investments in securities that are difficult to purchase or
sell (
illiquid or thinly - traded securities) may reduce returns if the Fund is unable to
sell the securities at advantageous times or prices.
Private MIEs are
illiquid investments and are not listed on a stock exchangeStock exchange A market in which securities are bought and
sold.
Also property
investment are deemed to be completely
illiquid but these were all designed to come into fruition over the coming years and i think previous management were underplaying their chances to
sell them.In short, expected upside surprises here and indeed I see the liquidity profile ticked up in the December report to 33p back by autumn.
Be prepared to be stuck in an
illiquid investment with either no ability to
sell or the chance to
sell at a distressed price.
Liquidity risk exists when particular
investments of the Fund would be difficult to purchase or
sell, possibly preventing the Fund from
selling such
illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other
investments at unfavorable times or prices in order to satisfy its obligations.
Interval funds hold
illiquid investments that would be difficult to
sell at a fair price quickly.
The portfolio will also become a little more biased towards
illiquid strategies — but PE will remain a minor allocation and, as I said, I can't imagine prime Swiss
investment property being too hard to
sell..!
«These private placements are
illiquid, though, meaning that you may have a hard time
selling your
investment if you need to raise cash quickly,» says Milledge.
Investors should be prepared to «dig in» to each deal and understand that this is an
illiquid investment that you just can't
sell out of on a whim.