highly liquid assets

USAGE SUMMARY

The phrase "highly liquid assets" is correct and usable in written English. You can use it in financial contexts to refer to assets that can be quickly converted into cash without significant loss of value. For example, "Investors often prefer to hold highly liquid assets to ensure they can access cash when needed." Alternative expressions include "readily available assets" and "easily convertible assets."

✓ Grammatically correct

Formal & Business

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

7 human-written examples

Vodafone (which owns a significant stake in Safaricom) manages individual customer accounts on its server, and Safaricom deposits its customers' balances in pooled accounts in two regulated banks, so their full value is backed by highly liquid assets.

Harvard Business Review

That results in further selling in cash markets, as counterparties who write the protection sell shares to hedge their own risk.Talk of a generalised sell-off, as well as a "flight to quality"—ie, to highly liquid assets such as Treasury bonds—has inevitably inspired some commentators to leaps of faith about the months ahead.

The Economist

In addition, if households are insured against health risk, they may invest in high-return riskier assets because they do not need to retain cash or to hold highly liquid assets for precautionary purposes.

Journal of Innovation and Entrepreneurship

And big banks would also be able to count municipal bonds as highly liquid assets, hooking an unrelated $3.8-trillion 3.8-trillionany financial catastrophe.

Los Angeles Times

In parallel, OTC reform is driving demand for the same narrow universe of highly liquid assets -- assets that are already intensively used in the secured lending markets for funding and liquidity management purposes.

Huffington Post

Some of these measures -- such as requiring firms to hold larger amounts of capital, stable funding, or highly liquid assets based on use of short-term wholesale funding -- would likely apply only to the largest, most complex banking organizations.

Huffington Post

Human-verified similar examples from authoritative sources

Similar Expressions

52 human-written examples

This does not include highly liquid current assets like cash, receivables, and securities.

WikiHow

The S.E.C. said that the certificates had been surreptitiously invested in real estate, other speculative investments and into Mr. Stanford's own operations even as his clients were told their funds had been invested in highly liquid and conservative assets.

The New York Times

By now it's a cliche to refer to U.S. debt as a "highly liquid" or "risk-free" asset.

The Washington Post

Here's how Repo 105 worked in simple terms: At the end of each quarter, to reduce its all-important leverage levels, Lehman would "sell" assets (typically highly liquid government securities) to another firm in exchange for cash, which it would use to pay down its debt.

The New York Times

Brennan being Brennan, he had planned for this contingency by accumulating some highly liquid and (he thought) invisible assets, which were unmentioned in his bankruptcy petition: to wit, some $4 million of New York State and City bearer bonds and, the government alleged, several hundred thousand dollars' worth of casino chips from the Mirage.

Forbes

Expert writing Tips

Best practice

When discussing a company's financial health, use "highly liquid assets" to underscore its ability to meet short-term obligations.

Common error

Avoid assuming all "current assets" are "highly liquid assets". Carefully evaluate each asset's actual convertibility to cash before classifying it as such.

Linguistic Context

The phrase "highly liquid assets" functions as a descriptive term in financial and economic contexts. It modifies the noun "assets", specifying that they are easily and quickly convertible into cash. Ludwig AI confirms this with examples from various sources, indicating its role in describing financial states and investment strategies.

Expression frequency: Uncommon

Frequent in

News & Media

43%

Formal & Business

29%

Science

14%

Less common in

Encyclopedias

2%

Wiki

6%

Reference

6%

Ludwig's WRAP-UP

In summary, "highly liquid assets" is a grammatically sound and frequently used term, particularly in financial discussions. Ludwig AI validates its correct usage across diverse and authoritative sources. The phrase describes assets readily convertible into cash, crucial for financial stability and flexibility. While not overly common, it serves a significant purpose in conveying the liquidity of a company's or individual's resources. Alternative phrases, such as "readily available funds" or "easily convertible resources", can be used depending on the specific context. Be mindful to avoid overstating liquidity, as not all current assets qualify as "highly liquid assets". Ludwig confirms the phrase's function as a descriptive term with examples in news, business, and scientific contexts.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cashable assets

Stresses the ability to turn assets directly into cash.

liquid investments

Emphasizes investments specifically designed for quick conversion to cash.

readily available funds

Focuses on the immediate accessibility of the funds.

quickly accessible capital

Highlights the swift accessibility of the capital for use.

easily convertible resources

Highlights the ease of transformation into usable resources.

fluid capital

Emphasizes the ease of movement and transfer of capital.

cash equivalents

Refers to assets almost as good as cash, very short-term and low-risk.

marketable securities

Focuses on securities that can be easily sold in the market.

negotiable instruments

Highlights instruments that can be transferred to another party.

current assets

Broad term that includes all assets expected to be converted to cash within one year.

FAQs

What are examples of "highly liquid assets"?

Examples include cash, money market instruments, and government bonds, which can be quickly converted to cash without significant loss of value.

How do "highly liquid assets" benefit a company?

They provide financial flexibility, allowing a company to meet immediate obligations and capitalize on unexpected opportunities.

What's the difference between "liquid assets" and "highly liquid assets"?

"Highly liquid assets" are a subset of "liquid assets" that are exceptionally easy and quick to convert into cash, representing the most readily available resources.

Why is it important for businesses to maintain "highly liquid assets"?

Maintaining "highly liquid assets" ensures businesses can cover short-term liabilities and unexpected expenses, providing a buffer against financial instability.