Sentence examples for illiquid from inspiring English sources

For illiquid assets, Enron had considerable discretion in deciding what constituted a fair price.

As experience shows, correlations can change suddenly.Financial economists also need better theories of why liquid markets suddenly become illiquid and of how to manage the risk of "moral hazard"—the danger that the existence of government regulation and safety nets encourages market participants to take bigger risks than they might otherwise have done.

The geography of joblessness ReprintsBut when the trend changes, prices may move very sharply, as the terrified herd stampedes out of what can be illiquid markets.

But the futures market is small and illiquid and may overstate the possible declines.The discrepancy between supply and demand suggests that prices could fall a lot more.

If bond investors were to turn from buyers to sellers, prices could fall sharply in an illiquid market.Given these worries, what explains the continued enthusiasm for corporate debt?

That has raised the price of gilts slightly, making it cheaper for the government to borrow, but the effect on corporate bonds has been minimal: the market remains quite illiquid.

Loans were illiquid and accounted for on an accrual basis in the "banking book" rather than on a mark-to-market basis in the "trading book".

Once the exorbitant fees are taken into account, returns look much less impressive than the industry's promoters claim, and than an illiquid, leveraged and long-duration investment would warrant.Looking ahead, returns are likely to be even worse.

On the basis of the master's ideas of radical uncertainty, for instance, he has long argued that securitisation the slicing and dicing of illiquid assets such as mortgages is inherently flawed.

A far bigger source of finance for illiquid firms is other more liquid ones.

The same applies to the risk of taking on options, which are less valuable than cash because they are illiquid and not certain to pay out.