BNET Business Dictionary
Business Definition for: Illiquid
- used to describe a person or business that lacks cash or assets such as securities that can readily be converted into cash
- used to refer to an asset that cannot be easily converted into cash
Wiktionary Definition for: Illiquid
- # finance lacking liquidity
- Ex:''Investment in '''illiquid''' assets may prove to be a mistake if the market turns down.
Additional Resources
- The SEC's 'Fair Value' Standard for Mutual Fund Investment in Restricted Shares and Other Illiquid Assets
- Mutual funds generally do not invest in venture capital, private equity, or restricted shares of public companies. Consequently, individuals who desire to invest in such securities are unable to do so through diversified mutual funds. This paper identify public policies and regulations that discourage mutual fund involvement in the markets...
- White papers 2000-11-01
- Credit Suisse ties pay to illiquid assets
- Credit Suisse is to give its top bankers shares in a new $5bn fund of illiquid assets in a daring move intended to link pay to the long-term performance of credit markets and limit the bank's exposure to the securities. The Swiss bank is also considering allowing investors to buy...
- News items 2009-08-07
- Risk Management for Derivatives in Illiquid Markets: A Simulation Study
- The present paper focuses on the risk management for derivative securities via dynamic hedging. The paper studies a model of an illiquid market where the implementation of a dynamic hedging strategy has an impact on the price process of the underlying asset. In practice such a feedback effect could for...
- White papers 2001-11-26
- Was East Asia illiquid or insolvent? With special reference to South Korea
- This paper argues that since mid-1997, East Asian crisis countries have suffered from a withdrawal of international capital flows well beyond any fundamental weakness in their economies. This has resulted in good part from "reverse free rider" behavior by foreign lenders. Hence East Asia has been "illiquid" but not "insolvent"....
- Research articles 1999-10-01
- What's really happening to the VC industry
- Editors' note: This guest column was originally published on Bill Gurley's blog. See his bio below.Many are speculating that the year 2009 represents a fundamental turning point for the venture capital industry. Some are arguing that the industry is in dire straits after years of poor performance. Others have argued...
- News items 2009-08-26
- Merrill Lynch Q4 2007 Earnings Call Transcript
- Question-and-Answer Session Operator Operator Instructions Your first question comes from the line of Glenn Schorr with UBS. Glenn Schorr - UBS Thanks very much. John, a follow-on to your comment on balance sheet rationalization; in terms of reducing the carry trades and illiquid assets on balance sheet, any...
- Earnings calls 2008-01-17
- Ameritrade and Schwab Take Opposite Paths
- A while back New York Attorney General Andrew Cuomo went after a number of brokers who had sold Auction Rate Securities (ARS) to clients. Clients have lost money on these securities, not due to credit defaults of municipalities, but because these securities have become illiquid and now trade with significant...
- External links 2009-08-07
- Banks, Short Term Debt and Financial Crises
- Short-term borrowing has often been blamed for precipitating financial crises. Institutions like banks that want to enhance their ability to provide liquidity and credit to difficult borrowers have to borrow short-term. Similarly countries that have poor disclosure rules and inadequate investor protections, have limited long-term debt capacity, and will find...
- White papers 2000-08-03
- Noise, Real Estate Markets, And Options On Real Assets: Theory
- The article looks into the valuation of illiquid real assets as well as claims written on illiquid real assets. In the model noise mean reverts such that observed asset values co-integrate with the unobserved full information asset value. The optimal value estimate is shown to have three time-weighted terms: a...
- White papers 2001-04-01
- Noise, Real Estate Markets, and Options on Real Assets: Theory
- This paper studies the valuation of illiquid real assets as well as claims written on illiquid real assets. In this model, noise mean reverts such that observed asset values co-integrate with the unobserved full information asset value. The optimal value estimate is shown to have three time-weighted terms: a forward...
- White papers 2001-04-01
- A Debt Puzzle
- The paper attempts to reconcile the high rate of credit card borrowing with observed levels of life cycle wealth accumulation. It simulates a lifecycle model with five properties that create demand for credit card borrowing. First, the calibrated labor income path slopes upward early in life. Second, income has transitory...
- White papers 2000-09-01
- A look at the raters, old and new. (Points and Viewpoints) (column)
- A Look At The Raters, Old And New Last month's issue dealt in part with the state takeovers of some life insurers, due more to their illiquid positions when there was a "run on the bank" rather than their actual insolvencies. Actually, onlA Look...
- Research articles 1991-09-23
- Human Beings Still Important at Citigroup
- Electronic trading is sweeping the industry, but when it comes to illiquid stocks, human beings remain important at some of Wall Street's largest firms. Electronic trading is sweeping the industry, but when it comes to illiquid stocks, human beings remain important at some of Wall Street's largest firms....
- Research articles 2007-03-01
- Merrill Lynch overhauls equity business in UK.
- Merrill Lynch is to stop market-making in the shares of 175 smaller companies after an overhaul of part of its equities business.The bank said that it had decided to stop market-making in certain small illiquid companies, to offer focused trading in Merrill Lynch is to...
- Research articles 2002-11-19
- Liquidnet chief expresses concern over Reg NMS rule; Fair access threshold would force open pools of liquidity.(Securities and Exchange Commission)
- Byline: Isabelle Clary NEW YORK - Liquidnet Holdings Inc., the dominant dark pool for block trades of often illiquid stocks, may become a victim of its own success, threatening a favorite trading model for institutional investors. The electroni Byline: Isabelle...
- Research articles 2007-05-28
- Levin not stalking Cablevision.(Jerry Levin dismisses acquisition)(Brief Article)(Statistical Data Included)
- Dismisses the $2 billion stake AT&T Broadband is looking to unload, calling it "illiquid and passive" Dismisses the $2 billion stake AT&T Broadband is looking to unload, calling it "illiquid and passive"
- Research articles 2001-05-21
- SEC Reviewing Valuation Policies In Recent Inspections Of Hedge Fund Managers
- During the course of recent investment adviser inspections conducted by the Securities and Exchange Commission ("SEC"), managers of private investment funds have been queried on methods used to price illiquid positions in a fund's portfolio. Examiners hav During the course of recent investment adviser inspections...
- Research articles 2002-10-18
- DEUTSCHE BANK TO FIGHT ARBITRATION LOSS
- Three Florida brothers are now $5.8 million richer after an NASD arbitration panel recently ruled against Deutsche Bank Securities, saying the firm was liable for placing the siblings into several risky and illiquid investments. But the firm is fighting b Three Florida brothers are now $5.8 million richer after an...
- Research articles 2006-10-01
- SEC Proposes Modernization Of Investment Adviser Custody Rule
- During the course of recent investment adviser inspections conducted by the Securities and Exchange Commission ("SEC"), managers of private investment funds have been queried on methods used to price illiquid positions in a fund's portfolio. Examiners hav During the course of recent investment adviser inspections...
- Research articles 2002-10-18
- Human Beings Still Important at Citigroup.
- Electronic trading is sweeping the industry, but when it comes to illiquid stocks, human beings remain important at some of Wall Street's largest firms. Electronic trading is sweeping the industry, but when it comes to illiquid stocks, human beings remain important at some of...
- Research articles 2007-03-01
Neighboring Terms
