illiquid asset

USAGE SUMMARY

The phrase "illiquid asset" is correct and usable in written English.
It is typically used in finance and investment contexts to refer to an asset that cannot be easily sold or exchanged for cash without a significant loss in value. Example: "Investing in real estate can be risky, as it often involves holding illiquid assets that may take time to sell."

✓ Grammatically correct

News & Media

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

They can thus afford to invest in illiquid asset classes.

The Economist

A chocolate factory is an illiquid asset: disposing of it is time-consuming and costly.

The New Yorker

Another might be operating an illiquid asset like a family business or a portfolio of buildings.

The New York Times

But as the industry expanded into illiquid asset categories, that strategy was no longer practical.

The Economist

This is probably because investors have demanded a premium for owning an illiquid asset.

The Economist

Is it wise to have such a high fraction of my savings in a relatively illiquid asset?

The Economist

Harvard said it was in the process of restructuring its illiquid asset portfolio, but hasn't abandoned alternatives.

The New York Times

Yet Americans still think it's financially savvy to dump all their savings into a single, large, highly illiquid asset.

The Washington Post

He emphasizes the empirical difficulty to measure the standard deviation, specifically for illiquid asset classes, and elaborates on investment strategies that manipulate the Sharpe ratio.

Yale University

Employees holding equity awards in private companies are restricted from monetizing an illiquid asset that they might need to support their living expenses.

Stanford University

Absolute return produced an annualized return of 11.1%, while the illiquid asset classes of private equity and real assets contributed annual returns of 6.2% and 10.8%, respectively.

Yale University

Expert writing Tips

Best practice

When discussing financial portfolios, specify the percentage allocated to "illiquid assets" to provide a clear understanding of the investment strategy's liquidity profile.

Common error

Don't assume an entity holding "illiquid assets" is insolvent. Illiquidity means an asset cannot be quickly converted to cash, while insolvency means liabilities exceed assets. An entity can be illiquid but still solvent.

Linguistic Context

The phrase "illiquid asset" functions primarily as a noun phrase, where the adjective "illiquid" modifies the noun "asset". It's used to describe a type of asset based on its liquidity. Ludwig confirms its proper usage.

Expression frequency: Very common

Frequent in

News & Media

35%

Academia

33%

Formal & Business

17%

Less common in

Science

10%

Wiki

3%

Reference

2%

Ludwig's WRAP-UP

The term "illiquid asset" is a commonly used phrase in finance to describe assets that cannot be easily converted into cash without significant loss of value. As confirmed by Ludwig, the phrase is grammatically correct and widely accepted. The phrase is frequently found in news articles, academic papers, and business reports, indicating its relevance across various professional domains. Alternatives such as "non-liquid asset" or "hard-to-sell asset" can be used depending on the specific nuance you wish to convey. It's essential to distinguish between illiquidity and insolvency; owning "illiquid assets" doesn't necessarily mean an entity is insolvent.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Non-liquid asset

Replaces "illiquid" with "non-liquid", offering a more direct synonym.

Hard-to-sell asset

Emphasizes the difficulty in selling the asset quickly.

Asset lacking liquidity

Rephrases to highlight the absence of liquidity.

Asset with low marketability

Focuses on the marketability aspect of the asset.

Difficult to liquidate asset

Highlights the challenges in liquidating the asset.

Untradeable asset

Suggests the asset cannot be easily traded.

Frozen asset

Implies the asset is not readily available for use or sale.

Asset tied up in investments

Explains the asset's illiquidity in terms of investment commitment.

Asset not readily convertible to cash

Expands on the definition of illiquidity.

Fixed asset with limited resale options

Highlights the resale limitations and fixed nature.

FAQs

How to use "illiquid asset" in a sentence?

You can use "illiquid asset" to describe investments that are not easily sold or converted into cash, such as real estate, private equity, or certain collectibles. For example, "The company's portfolio includes a significant portion of "illiquid assets" like land and infrastructure projects."

What are examples of an "illiquid asset"?

Common examples of "illiquid assets" include real estate, private equity investments, closely held business interests, and certain types of collectibles like art or antiques. These assets can't be quickly converted to cash without significant loss of value.

What can I say instead of "illiquid asset"?

You can use alternatives like "non-liquid asset", "hard-to-sell asset", or "asset lacking liquidity" depending on the context.

What's the difference between "illiquid asset" and "liquid asset"?

"Illiquid assets" are not easily converted into cash without a significant loss in value, while "liquid assets" such as cash, stocks, and bonds can be quickly sold with minimal impact on price. The key difference lies in the ease and speed of conversion to cash.