Sentences with phrase «when liquidity»

It is very stable most of the time, but when liquidity gets scarce, the system as a whole can unwind.

I also note «AREOF continues to meet part of this obligation to the Argo Group as and when liquidity allows.»

When asked why, I said that we were in the midst of a liquidity rally, and that short positions were poison when liquidity was adequate to finance marginal companies.

During the financial crisis, there seemed to be times when liquidity was in high demand.

Because in crises, the long assets are illiquid, and as such the value shrinks when liquidity is prized.

When liquidity is scarce, prices tend to fall, though it is often masked by a lack of trading in an illiquid market.

Often when liquidity is flush, the marginal bidder is a speculative entity.

No one knows the future, but having some slack capital available to invest, like Buffett with his «elephant gun,» allows for intelligent investing when liquidity is scarce, and yet you have some.

Goes through the three definitions of liquidity, and shows how they are related, particularly when liquidity is scarce, even though they are different phenomena when liquidity is plentiful.

There are times in life when liquidity is extremely valuable and planning ahead for those times is wise.

When liquidity is scarce, the cost to trade rises as does the opportunity to profit, sometimes significantly.

When the liquidity goes away, as it always does for some minority of corporate borrowers, the debt problem is worse not better.

As it is, when liquidity declines and leverage follows, all manner of errors gets revealed.

Although the margin call feature is designed to close positions when account equity falls below the margin requirements, there may be instances when liquidity does not exist at the exact margin call rate.

If you need the flexibility of getting at the money in your TFSA (like if it's part of your emergency fund), then put it there and then later contribute to RRSP when the liquidity need is not as great.

When the liquidity premium is high, the asset is said to be illiquid, and investors demand additional compensation for the added risk of investing their assets over a longer period of time since valuations can fluctuate with market effects.

Sure you can get a little more for it, but you add risk and reduce liquidity, when liquidity is the primary purpose.

I continued, «But wait, who would offer to pay at a time when liquidity is scarce?

I shook my head for a moment and said, «Wait a minute, you mean getting a counterparty to pay cash at a time when liquidity is scarce?»

Too many thought it was easy money to invest in illiquid assets, and when the liquidity panic came in 2008 - 2009, they were forced to borrow, and / or sell illiquid assets at an inopportune time.

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

Well, okay, high quality bonds are weak... that is normally true when liquidity is rampant.

When liquidity began to become scarce, the entities that were weakly financed faced sharply rising borrowing costs, and many defaulted.

The temporary nature of them (TAF), plus the reduction in T - bill holdings, particularly during year - end, when liquidity is needed for the «holidays» of some, is unusual to say the least.

Static - priced universal life policies with low to zero cash values show their significant weakness when liquidity is needed, and might be rejected for that reason alone.

Spikes occur whenever liquidity is scarce, for example at the end of a trading session when liquidity providers roll over their activities to the next day.

When liquidity in the financial system is reduced, interest rates tend to rise and / or stay high.

When that starts to change, when that liquidity flow starts to slow and rates start to move then those goggles start to clear up a little bit.

Chapman also agrees with Conway that when the liquidity bubble bursts, the decline in world stock markets could be sharp and severe, possibly even reaching crash magnitudes on the downside.

He rebalances the portfolio twice daily when liquidity is high at the London and New York closes.

When liquidity is flowing, valuations don't matter as much, and the risk of default goes way down for venture debt investors.

But even in milder «left tail scenarios» it is price that makes the difference to mutual fund and ETF holders alike, and when liquidity is scarce, prices usually go down not up, given a Minsky moment.

In the aftermath of the bitcoin futures rollout, MacKenzie watched the market and gave the green light for clients of the firm to trade only when the liquidity was just right.

Not exact matches

When we're investing in private funds, we're looking for something that has a high enough return to pay us for the higher risk and lack of liquidity.

Although last year was favorable for developing countries, investors remember the painful «taper tantrum» that ensued several years ago, when the Fed signaled it would begin pulling back on its massive bond purchases that kept rates low while injecting liquidity in markets.

Liquidity is essential when providing financial services.»

But when there's a volatility shock, liquidity vanishes from the market.

Griffin says investors will supply liquidity when needed, but that's not always true in the case of a crisis.

«I remember in the very early days of Alpha, when we were struggling a little bit, we looked at how we could involve more high - frequency traders because they were very good at igniting liquidity,» he says.

As a result, outsize price swings can hamper liquidity, making it difficult for markets to function properly when it's most crucial, says Kolanovic, JPMorgan's global head of quantitative and derivatives strategy.

When we talk about bond market liquidity it's important to understand that there are lots of different «pools» out there such as high yield bonds, munis, government bonds, etc..

In his March note to investors, Marks admits that when he set out to write about liquidity, he didn't believe the topic was all that interesting or profound; in the month since Marks wrote the piece, it has been the market's chief concern.

Since the bond market's «flash crash» back in October — when US 10 - year Treasury yields fell 34 basis points, or 0.34 % in one morning — concerns regarding liquidity and how resilient the bond market might be to shocks have lingered around the market.

In September 2008, AIG experienced serious liquidity issues (despite its $ 1 trillion balance sheet) when it couldn't post $ 20 - 25 billion of liquid collateral related to credit default swap contracts written by one of its subsidiaries.

Their presence helps ensure stability and liquidity, especially when things get hairy.

There is probably a liquidity concern at present, but I don't know how much the concerns expressed by many banks will matter when push comes to shove.

«Reuters are also suggesting that the mini flash crash experienced in trading in Asia yesterday (when gold tumbled nearly 5 %) was exaggerated with the relatively low liquidity as CME circuit breakers triggered twice in just one minute with suggestions of large amounts of stop - loss selling.»

They would be allowed to make liquidity, meaning they could stand by with orders to buy or sell stock and only execute when other traders were ready, but they could not take liquidity or trade when they wanted to.

When you can't meet a margin call because you have insufficient liquidity, that's profound.

Marks wrote than when he told Wintrob that he didn't think the issue of liquidity was particularly important or profound, Wintrob said: