Sentences with phrase «traded illiquid bonds»
Having traded small and microcap stocks, and traded illiquid bonds, I am less afraid of illiquidity than many are.
http://alephblog.com/ Not exact matches
We trade all fixed income assets, with a focus on more illiquid situations, from high yield, distressed and investment grade bonds and convertible bonds to public and private corporate securities and leveraged loans.
Exchange - traded funds holding bonds offer cheap, efficient access to bond markets that, for individual investors, can be illiquid and expensive to trade.
While the bond market in general has become relatively illiquid, the corporate junk bond market is now largely trading in «step function» prices for anything larger than «one - sies and two - sies» ($ 1 to $ 2 million bond trades).
Prior research has established that illiquid bonds tend to have higher spreads (i.e., greater trading costs) than liquid bonds.
«Exchange - traded products introduce self - reflexivity by creating a highly liquid security (listed stock) that tracks a potentially illiquid underlying instrument (e.g. high - yield bonds, commodity futures)» (again, Cole's «Prisoner's Dilemma»).
Illiquid asset Immediate - or - cancel Income bond Income statement Indenture Index Indication of interest Individual Retirement Account (IRA) Industrial revenue bonds Inflation Inflation rate Initial public offering Inside market Insider Instinet Institutional investor Intangible drilling and development costs Integration Interbank market Interest Intermarket Trading System (ITS) Interpositioning In - the - money Intrastate offering Intrinsic value Introducing broker / dealers Inventory Inverted head and shoulders pattern Investment Investment adviser Investment Advisers Act of 1940 Investment banker Investment Company Investment Company Act of 1940 Investment contract Investment grade securities Investor brochure In - whole call IOC IPO Issue Issuer
Bond indexes can hold hundreds and sometimes thousands of bonds, some of which are illiquid or thinly traded.
An illiquid bond can go weeks without trading.
Prior research has established that illiquid bonds tend to have higher spreads (i.e., greater trading costs) than liquid bonds.
On Grantham's comments: my comments Saturday night are pertinent here for two reasons — anyone selling illiquid CDO tranches, subordinated mortgage bonds, etc., immediately prior to the crisis would find two things: 1) the bids were non-existent or really poor, and 2) if the trade did take place, it would be at levels that reset the pricing grid for that area of the market a LOT lower, leaving the remaining securities looking worse, and a diminution of GAAP equity.
That might work, but if the bonds are illiquid, often the derivatives are as well, or, the derivatives trade rich to where an identical bond would trade in the cash market.