illiquid

Or, to put it another way, they have borrowed in liquid form and invested the proceeds in illiquid assets.

For one, frontier markets are small and illiquid, so investors may find it difficult to get out of a bad-performing stock.

This was pretty easy to do in an illiquid market.

This is often because investment trusts are better able to hold illiquid assets, as they do not have to sell them to pay exiting investors.

But as the industry expanded into illiquid asset categories, that strategy was no longer practical.

Some asset classes (particularly illiquid ones) can be subject to a "rowing boat" effect. Mortgage-backed securities were a classic example.

There was a time when novice bankers were taught that illiquid or highly volatile assets should play little part on bank balance sheets.

Over these past weeks, we have continued to examine the relative benefits of purchasing illiquid mortgage-related assets.

Until recently the argument was that Italy and Spain, unlike Greece, were illiquid but solvent given austerity and reforms.

Over these past weeks, we've continued to examine the relative benefits of purchasing illiquid mortgage-related assets.

Real money players who are able to buy and hold even relatively illiquid assets are bolstering the trend toward simpler portfolios, he said.

It all sounds suspiciously like the subprime mortgage boom, when banks parked illiquid assets in off-balance-sheet vehicles.

Clients flocked to redeem money, which exposed the mismatch between the illiquid assets some mangers invested in and their volatile funding.

But many of these trade at sharp discounts to their net asset value, and tend to be illiquid and with few holdings.

These positions have to be funded, which can be costly, especially if the securities are illiquid.

Banks are also being asked by their auditors to put more assets into the fair-value regime's lowest bucket (for the most illiquid assets).

Over-the-counter instruments tend to be illiquid, so their prices fall especially hard under the pressure of a fire sale.

I can't imagine why anybody is going to go choosing some illiquid and very expensive stock with very little beyond being a trophy.

He said that businesses were not investing in long-term illiquid capital, and were choosing instead to keep their cash.

and a portfolio with international diversification but without the illiquid private-equity, hedge-fund and real-estate portions.

His company, which trades illiquid securities, started trading bankruptcy claims this year in anticipation of a wave of corporate defaults.

Tom: So illiquid mortgage papers become "toxic assets" to the bank?

GM's credit had been extremely illiquid for months, trading at levels that implied a default was a high probability.

The pronounced lack of tolerance for illiquid investment risk is quite at variance with current relatively narrow corporate bond spreads.

However, a sound bank would not become illiquid or insolvent by such an attack.

The rationale for concocting this alphabet soup is the desire to create funds linked to illiquid asset classes.

Some asset classes (particularly illiquid ones) can be subject to a "rowing boat" effect.

"Structured products can become illiquid and pricing can be at the mercy of the issuer, " says Pictet's Mr de Saussure.

A chocolate factory is an illiquid asset: disposing of it is time-consuming and costly.

According to Fitch, the average investment bank holds more than twice as much capital as it does illiquid assets.

An exodus out of a relatively small and illiquid market like Indonesia can mean oversized price drops as everyone sells at the same time.

Dealers say the Greek market is quite illiquid since insuring against default is so expensive.

Combined with a collapse of long-term illiquid investments by households, they have frustrated economic recovery.

It is dangerous to put too much weight on what is still an illiquid market.

Trading in all of these instruments is admittedly very illiquid, but the implication is hard to ignore.

Furthermore, it is far from clear, even now, that banks are marking their illiquid assets conservatively enough.

Short of radical action, it said, "it is quite possible we will witness the collapse of a solvent but illiquid company" .

Pension funds are less prone to sudden withdrawals of cash and are the best homes for illiquid assets.

Non-negotiable, illiquid "US Savings Bonds" would not suffice.

Most of the time this strategy works, because illiquid assets offer a premium return to compensate for the higher risk.

It might be that the manager is buying illiquid assets.

Brad Hintz of Bernstein Research notes that the share of the industry's capital held in such illiquid investments is growing very fast.

More important, he says, investors deserted relatively illiquid TIPS in favour of nominal bonds, driving the yields in opposite directions.

The market might become illiquid if those that had in effect sold insurance tried to exit their positions.

He also notes that the unquoted, illiquid assets held by many hedge funds can give a misleading impression of their volatility.

This wider set, of necessity, increases risk premiums on illiquid assets.

Nevertheless, the rapid trading of ETFs is an area of concern, especially when the underlying assets are illiquid.

Money market funds would be prohibited from buying illiquid securities under the proposals.

CME's executives remain wary that new rules may drive some activity abroad or require the clearing of unsuitably exotic, illiquid swaps.

It has created many lending programmes since August 2007 to help banks finance holdings of illiquid assets and so avoid fire sales.

making periodic withdrawals from the illiquid account. Between each withdrawal, the household.

Such a sell-off, in a market that is still small and illiquid, need not have much effect on the world economy.

Commercial banks are exhibiting a similar reduced tolerance towards risk on partially illiquid lending.

Are you the third or fourth wave of a three wave stock manipulation or is someone just trying to generate volume in an illiquid investment.

The nickel market is small and relatively illiquid and traders describe the metal's physical supplies as "very stressed" .

Financial supervisors want to believe that troubled banks are temporarily illiquid, not permanently insolvent.

This pattern of returns occurs because hedge-fund managers often invest in illiquid (hard-to-trade) assets.

Meanwhile, many limited partners who back PE firms have discovered just how illiquid and long-term holdings in the asset class are.

The bad assets were not Zimbabwean government bonds but loans given to troubled banks backed by problematic and illiquid assets.

"The fallen profits in highly risky, illiquid areas were more than compensated for in other areas, " he says.

Illiquid and fragmented markets allow determined traders to cause large price movements.

This mismatch between liquid debt and illiquid assets makes banks susceptible to sudden losses of funding.

But when bad news hits stock markets, illiquid assets can be hit extremely hard.

If the Fed went further and started to buy illiquid assets outright, as some are advocating, that would be different.

Furthermore, structured finance's dependence on leverage and illiquid assets has left it prone to crisis.

But China's relatively illiquid market is not driving the continuing turmoil.

Most are illiquid and their shareholders are unable or unwilling to provide the necessary funds.

Many of these securities are illiquid, so regular prices are not available.

If so, central banks may find they have to go further than ever and provide a floor for asset prices in illiquid markets.

In crises of liquidity and solvency, central banks can provide liquidity to support illiquid banks.

You have to do triage between banks that are illiquid and undercapitalized but solvent and those that are insolvent.

And many of the new risk-dispersing instruments are so illiquid that trouble may not emerge for some time.

The facility may thus eventually do what TARP was meant to: relieve banks of their illiquid assets.

Lehman used subjective, inconsistent methods to value its illiquid assets.

Amarin and most of the other companies that are leaving are tiny and illiquid.

There is a case for restricting it in illiquid securities, where shorting may manipulate or distort prices.

In illiquid markets, trading for fundamental reasons is scant or infrequent.

Incredibly, stress tests failed to include many of Lehman's most illiquid assets.

Markets or instruments are described as being illiquid, or lacking depth, if there is a shortage of buyers or sellers. This . . .

It worries about the opacity, the exposure to illiquid investments and the failure to spell out worst-case scenarios.

Funds face the problem of how to raise cash, without selling liquid holdings and leaving investors with an illiquid rump.

making periodic withdrawals from the illiquid account.

These illiquid assets are choking off the flow of credit that is so vitally important to our economy.

In theory the central bank should only buy the bonds of illiquid but solvent governments.

Some other illiquid hedge strategies, such as pre-float private equity investment and direct lending, also had a positive August.

Frontier markets are generally those that don't make it to 'emerging' status because they are too small, illiquid or otherwise inaccessible.

Illiquid portfolios are more difficult to cash out when the political winds change.

More illiquid hedge fund investments will demand longer lock-up periods.

Holding a lot of long-term, illiquid assets and using very short-term markets for funding seemed fine when times were good.

The stock market offers a wealth of choices, even after we cut out illiquid or flat stocks.

In reality, all of them were handing out money, or near money, and accumulating illiquid assets.

But many banks are now assumed to be not only illiquid but insolvent.

Never forget that gold is a fairly illiquid investment that pays no income.

In other words, most SOEs are illiquid, kept alive only by government money.

This would have forced banks and the central government to share the costs of bailing out illiquid LGFVs.

they have borrowed in liquid form and invested the proceeds in illiquid assets.

FASB published a staff position brief on October 10, 2008, in order to clarify the provision in case of an illiquid market.

Chinese citizens' only real investment choices are property, which is illiquid, and the stock market.

The people familiar with the portfolio said that it would be difficult to sell all the CDOs because they are generally illiquid.

Australian hedge funds are no different from those elsewhere; they can involve borrowing, short-selling, and illiquid securities.

The need to reduce risk forces investors to sell assets into an illiquid market.

CalPERS loaded up on real estate, private equity and other illiquid assets in the years before the crisis.

But in an illiquid market, a big sale can itself drive down prices.

The Fed's borrowers included institutions such as Lehman and Citigroup, which were insolvent rather than illiquid.

But what if many of your assets are illiquid?

This is probably because investors have demanded a premium for owning an illiquid asset.

It is illiquid, which can strand people in their homes even if they are not in negative equity.

And for illiquid securities, it can get very expensive for an administrator to go out and verify those prices.

European ministers this week discussed setting up "bad banks" to buy illiquid assets.

Falling prices are accentuated in illiquid markets such as residential property.

Many of these are illiquid and still booked at their original, inflated prices.

The market for property may appear favorable for first-time homebuyers, but a house is an illiquid investment.

Determining prices for rare earths is tricky because the market for them is illiquid and only small quantities are produced globally.

This shortage makes is difficult to find a true price for an illiquid security.

Some funds specialise in illiquid assets such as derivative products of sub-prime mortgages.

AIG has labored to unload illiquid assets in order to give back the collateral it accepted.

Furthermore, niche strategies tend to invest in illiquid assets, such as exotic options.

For sure, nobody knows precisely what Bear is worth, so stuffed is it with hard-to-value, illiquid mortgage securities and other nasties.

Sure, the $53 billion in assets are illiquid, but at some price there is a buyer.

While the A-share market has a $700bn capitalisation, many stocks are small, illiquid and have limited free floats.

Previously illiquid assets, such as bank loans, now trade regularly.

Italy, while not yet illiquid, faces solvency risks.

Furthermore, these assets are illiquid precisely because they are so hard to value.

So Italy and other illiquid, but solvent, sovereigns need a "big bazooka" to prevent a run on their public debt.

They can thus afford to invest in illiquid asset classes.

The market is both small and illiquid: average daily turnover last year was less than $65m.

The net effect has been to push three-month rates about 50bps higher while rendering the swap and forward foreign exchange markets illiquid.

It is this rapid rise in aversion to illiquid risk that explains a large part of the anaemic recovery in the US.

Find yourself sitting in a seat where your job is to trade any illiquid, opaque product with a three-letter acronym. c

Survey of Positive Studies by the Acquisition Approach on the Liquidity Premium of Illiquid Shares

they would invest in a wide range of often illiquid and opaque assets;

less central-bank largesse would push many illiquid institutions into insolvency

They are, at last, focusing on the right priorities: building a firewall around illiquid but solvent countries like Italy;