Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,727,889,880 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

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.
Liquidity Premium
The rate of return that an investor expects above other rates or return in order to make an illiquid investment. All other things being equal, an investor generally expects a higher return for investing in something that may be difficult to convert to cash. For example, an inactive bond may pay a higher coupon rate than an active bond with a similar credit rating.


How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
No references found
 
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
More results
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2009 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.