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liquidity premium

   Also found in: Acronyms, Wikipedia 0.01 sec.
Liquidity premium
Forward rate minus expected future short-term interest rate.
liquidity premium
The extra return demanded by investors as compensation for holding assets that may be difficult to convert into cash. For example, bonds that seldom trade should offer a higher yield to maturity compared to actively traded bonds of similar maturity and credit risk.
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Although we anticipate more volatility throughout the remainder of the year, at the current spread of 750 basis points over Treasuries (as of October 23, 2000) we believe that the High Yield sector remains attractive after giving effect to anticipated defaults and the required liquidity premium.
Managed High Yield Plus Fund Inc. - New Management Announcement and ... by Business Wire
company liquidity premium (50%, conservatively), to private market acquisition multiples that can reach as high as 5x EBITDA.
BlueStone Capital Initiates Research Coverage of National Home Health ... by Business Wire
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