Illiquid


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Related to Illiquid: Illiquid Market, Illiquid Assets

Illiquid

In the context of corporate finance, the absence of cash flow needed to fulfill financial debts and meet obligations. In the context of investments, describes a thinly traded investment such as a stock or bond that is not easily converted into cash. Illiquid securities have high transactions costs. Often the bid-ask spread is very wide.

Illiquid

Describing an asset that is difficult to sell because of its expense, lack of interested buyers, or some other reason. Examples of illiquid assets include real estate, stocks with low trading volume, or collectibles. Illiquid assets still have value and, in many cases, very high value but are simply difficult to sell. See also: Liquid.

illiquid

1. Of or relating to an asset that is difficult to buy or sell in a short period of time without its price being affected. For example, a large block of stock or a small amount of an infrequently traded stock is likely to be difficult to sell without a reduced price being offered to potential buyers. Compare liquid.
2. Of, relating to, or being an investment position in which a low proportion of assets is in cash or near-cash, thereby creating difficulty for the investor who is trying to raise funds for another purpose.
References in periodicals archive ?
Pooled DC schemes could use their scale to enhance their negotiating position when agreeing fees for illiquid assets, such as infrastructure, as well as develop the internal expertise to invest in alternatives directly.
And Prudential Private Placement Investors managed $81 billion in illiquid credit.
Houlihan Lokey Inc, a boutique bank, said that it has hired two MDs to focus on illiquid European assets.
Further, the data shows institutions increasingly embrace illiquid assets, including private credit and real assets, as a way to meet their long-dated liabilities.
National Treasurer Rosalia de Leon earlier said the debt swap was done to replace illiquid bonds with new ones that are more tradable.
Let's take a look at two of these possible newcomers to the alternative asset class family: illiquid credit and residential real estate.
By contrast, a classification based on liquid and illiquid wealth finds economically significant differences.
25 September 2013 -- New York-based investment bank Houlihan Lokey said it plans to launch an Illiquid Financial Asset practice incorporating the firm's existing Secondary Advisory Group.
If the prospect agrees that paying a commission to sell a stock does not make the stock illiquid, then they have to logically accept the fact that paying a fee to get money from an annuity does not make the annuity illiquid.
investor is indifferent between holding cash or holding illiquid real
In this economy, there are trillions of dollars in illiquid assets, and determining their value requires specialized expertise and market data," according to President Espen Robak.
The illiquid asset back-up facility provided by the Dutch state to the financial group ING, in exchange for the flows generated by part of its illiquid asset portfolio, constitutes state aid and has been temporarily authorised by the European Commission for a period of six months.