illiquid assets

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

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.

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.

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).

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

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

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

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.

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.

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

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

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.

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.

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

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

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

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

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

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

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

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.

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