Forced Liquidation

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Forced Liquidation

A situation in which an outside party can force the sale of an asset belonging to another. For example, a bank may force a borrower to sell his/her collateral in order to repay the debt. Likewise, a brokerage can force a client to sell securities if the client is unable to meet a margin call and preferred stockholders can (sometimes) force the liquidation of a publicly-traded company if it does not make preferred dividend payments.
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Featuring Agency Stolen, Confiscated & Forfeited Property, Vehicles & Jewelry, Fiduciary Trusts, Bank Forced Liquidations, School District Equipment & Supplies, City Surplus Including Commercial & Restaurant Equipment and More
Through the first leg of the financial crisis, the yen was rising as traders deleveraged direct or indirect carry trades through a need for cash, natural repatriation and frequently forced liquidations.
They find that, in the aggregate, promised payments to creditors exceed liquidation values and conclude that the Japanese bankruptcy system can create value compared to a system of forced liquidations.
The past quarter was challenging for all money managers due to market volatility and massive forced liquidations by hedge funds, which has hurt all asset classes," says Mr.
Liquidity problems affecting certain Wall Street firms, hedge funds, and other financial instruments investors have exacerbated this market phenomenon through forced liquidations of their assets.
Farm income expectations have wilted, and sharply higher feedstock prices have lifted forced liquidations and cut into livestock profits.
Sure, there will probably be a second wave of mortgage defaults that could cause another round of forced liquidations on Wall Street, but during any future period of forced liquidations, we doubt the U.