liquidity risk

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Liquidity risk

The risk that arises from the difficulty of selling an asset in a timely manner. It can be thought of as the difference between the "true value" of the asset and the likely price, less commissions.

Liquidity Risk

The risk that an individual or firm will have difficulty selling an asset without incurring a loss. That is, there may be a lack of interest in the market for a particular asset, forcing the owner to sell it for less than its actual value. Liquidity risk may be quantified as the difference between an asset's value and the price at which it can likely be sold. It is highest for lightly traded securities and small issues, as well as during a bear market.

liquidity risk

The risk of having difficulty in liquidating an investment position without taking a significant discount from current market value. Liquidity risk can be a significant problem with certain lightly traded securities such as unlisted options and municipal bonds that were part of small issues. Also called marketability risk.
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Interbank FX is committed to maintaining the highest standard of service that enables our customers to focus on trading opportunities in the Forex market while limiting their margin and liquidity risks.
Interbank FX Announces the Release of ``Interbank FX Money Manager,'' Revolutionary Software for Fund Managers
Additional concentration/asset liquidity risks are seen in the unencumbered pool with the company's Merchandise Mart assets contributing 26.
Fitch Rates Vornado Realty's $250MM Unsecured Note Offering 'BBB'
Management of liquidity risks is important to funds' ability to meet their statutory obligation and their investors expectations regarding redemption of their shares.
United States : SEC Votes to Modify Compliance Date for Open-End Fund Liquidity Classification
It noted liquidity risks would always be present as banks expand their lending activities.
Banks urged to intensify measures vs liquidity risks
The objective is to ensure that liquidity risks are well managed and in line with international standards.
Banking regulation in the UAE-the delicate balance
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.
FITCH: US HY FUNDS FACE WIDELY VARYING LIQUIDITY RISKS
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.
The relationship between stock liquidity risk and financial information quality criteria in Tehran stock exchange
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.
SEC Wants to Stem Liquidity Risk of Open-End Funds, ETFs
Managing liquidity and liquidity risks to promote financial stability
IFSB- FSI organise seminar on liquidity risk in Doha
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.
-Action to protect against structural liquidity risk likely, says Swedish regulator
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.
Self Evaluation for Capital Efficiency and Management of Liquidity Risks Seminar
Sensitivities and Tolerances to Liquidity Risks of Different Financial Models
Michael B. Glotz, Partner, Strategic Risk Associates, LLC to Speak at KC's Asset Liability Management and Liquidity Risk Management: Practical Guidance Live Webcast

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