Management of liquidity risks
is important to funds' ability to meet their statutory obligation and their investors expectations regarding redemption of their shares.
It noted liquidity risks
would always be present as banks expand their lending activities.
The objective is to ensure that liquidity risks
are well managed and in line with international standards.
Investor s redeemed several billion dollars' worth of shares in US high-yield bond funds following the Third Avenue Focused Credit Fund's redemption halt in December, highlighting the importance of assessing liquidity risks
within mutual funds.
Market characteristics: Some of the characteristics of the market are expected to affect a company's stock liquidity risk
in this research, including stock liquidity, volume of shares traded, and can be past returns and firm size, and are presented in the model as a control variable affecting stock liquidity risks
Swing pricing would enable mutual funds, subject to board approval and oversight, to reflect in a fund's net asset value (NAV) costs associated with shareholders' trading activity, and "is designed to protect existing shareholders from dilution associated with shareholder purchases and redemptions and would be an additional tool to help funds manage liquidity risks
," the agency states.
Managing liquidity and liquidity risks
to promote financial stability
Measures to address the structural liquidity risks
and potential funding squeeze in Sweden would be taken soon, said Uldis Cerps, executive director for banking at the Swedish Financial Supervisory Authority.
Muscat, Oct 7 (ONA) The three-day Seminar on the Self-Evaluation for Capital Adequacy and the New Standards and Requirements for the Management of Liquidity Risks
, organized by the Arab Banks Union in collaboration with the Central Bank of Oman (CBO) kicked off at Crowne Plaza Hotel today.
Sensitivities and Tolerances to Liquidity Risks
of Different Financial Models