But that doesn't happen for strategies that deal
with illiquid securities.
That's not where transactions would necessarily take place... particularly
with illiquid securities, what would matter most is who was more incented to make the trade happen — the buyer or the seller.
If you want to learn the microstructure of markets, there is no better training ground than
with illiquid securities.
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.
The latter re-incorporated themselves as «banks» to get Federal Reserve handouts and access to the Fed's $ 2 trillion in «cash for trash» swaps crediting Wall Street
with Fed deposits for otherwise «
illiquid» loans and
securities (the euphemism for toxic, fraudulent or otherwise insolvent and unmarketable debt instruments)-- at «cost» based on full mark - to - model fictitious valuations.
Given the absence of a public trading market of our common stock, and in accordance
with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity
Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economi
Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve
illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economi
securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.
How Pluris differs: Pluris» unique secondary market transaction data; Pluris» original research on discounts for
illiquid securities and business interests; a staff
with the expertise for the job.
As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and sell
illiquid securities because of the difficulty of trading, and the problem of moving the market away from you
with a large order.
It is likely that the investment banks of our world, together
with those they deal
with, have marked
illiquid securities to their own advantage.
This is a problem
with no solution, unless you want to ban
illiquid securities from hedge funds.
As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and sell
illiquid securities because of the difficulty of trading, and the problem of moving the market away from you
with a large order.
Alternative investments are speculative, subject to high return volatility and involve a high degree of risk including, but not limited to, the risks associated
with leverage, derivative instruments such as options and futures, distressed
securities, may be
illiquid on a long term basis and short sales.
The Focused Credit fund, Mr. Barse's brainchild, came into the summer of 2015
with something like one third of its assets invested in
illiquid securities, so - called «Level 3
securities.»
However, caviling aside, there is some new information in the piece, namely, that funds that hold a fair number of positions in
illiquid securities appear to seek out favorable valuations to turn months
with negative returns into positive results:
Factors which may cause the adviser to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the
securities markets, such as the suspension or limitation of trading; (iii)
securities determined to be
illiquid; (iv)
securities with respect to which an event that will affect the value thereof has occurred (a «significant event») since the closing prices were established on the principal exchange on which they are traded, but prior to the Fund's calculation of its net asset value.
Restricted or
illiquid securities, such as private placements or non-traded
securities are valued via inputs from the adviser valuation based upon the current bid for the
security from two or more independent dealers or other parties reasonably familiar
with the facts and circumstances of the
security (who should take into consideration all relevant factors as may be appropriate under the circumstances).
Pretty limited investment set in general, but especially so today
with only a couple very
illiquid securities I am trying to buy.
This just goes to show that constructing a real portfolio and a hypothetical portfolio are very different things, especially when dealing
with very
illiquid securities like I do.
With respect to the limitation on
illiquid securities, in the event that a subsequent change in net assets or other circumstances cause a fund to exceed its limitation, the fund will take steps to bring the aggregate amount of
illiquid instruments back within the limitations as soon as reasonably practicable.
«The Continued Risk of Troubled Assets», the latest report from the Congressional Oversight Panel (COP), points out the ongoing risks that commercial and residential mortgage - backed
securities (CMBS and RMBS, respectively), along
with other
illiquid troubled assets, pose for financial institutions and the financial system.