Illiquid Market

Illiquid Market

A market in which that is difficult to sell assets because of their expense, lack of interested buyers, or some other reason. Examples of illiquid markets include real estate, some stocks with low trading volume, or collectibles. Assets in illiquid markets still have value and, in many cases, very high value, but are simply difficult to sell. See also: Liquid.
References in periodicals archive ?
Portfolio manager at Investec Asset Management, Dr Pako Thupayagale, said this when presenting about investment ethics in a concentrated and illiquid market: the case of Botswana listed equities at the just ended Botswana Pensions Society conference in Maun.
Seventh, we show that a higher degree of VM trading is significantly related to funds' future Carhart (1997) alpha and thus translates directly into benefits for investors, especially during illiquid market periods.
Audit and business consulting firm Morison Menon Group announced the launch of Mi Capital Finance Consultants, specialised in banking and corporate finance consulting for firms facing challenges due to an illiquid market.
That has forced their managers to sell into an illiquid market and pushed down prices of some bonds sharply, says Guy LeBas, chief bond strategist at Janney Montgomery Scott.
"The local index increased by 21.3% in 2013 on a turnover of N$352 million after a 23.7% increase in 2012, all in an illiquid market while the Overall index increased by 1.32% against the JSE All Share index, which increased by 17.85%," Matthews said.
In an illiquid market such as Morocco, you could have heavy selling." Liquidity, one of the key factors for inclusion in the MSCI emerging market index, against which $1.4 trillion is benchmarked, is dwindling.
Foster added, "We're pleased to launch the Fund because it provides investors liquid access to a traditionally illiquid market. The infrastructure market has historically been limited to institutional investors who could invest large sums of capital, but the growing publically, traded listed infrastructure market provides retail investors a similar opportunity to earn income and capital appreciation."
Funny thing is that, when the banks do that, it is often foreigners that come in and take advantage of the cheap pricing that comes about as a result of an illiquid market. So from my point of view, every time a rocket gets launched, our values increase.
This does not mean that the M&A market will be dead, but we might only see deals of significant size from companies with ample cash on their balance sheets that want to take advantage of an illiquid market. In general, these will be the larger companies like DSM, BASF, etc., which have the cash and have already shown an interest in being acquisitive.
Too many players in a small illiquid market is detrimental to the growth of the sector.
A report by the Public Debt Management Office in March described it as an illiquid market with no primary dealers, where a lack of volume data hindered an objective assessment.
Premiums for gold bars in Hong Kong were offered from as little as 90 cents to the spot London prices to as high as $1.70, reflecting an illiquid market.