If credit lines could pre-empt crises of illiquidity, that still leaves the problem of insolvency.
The government's returns largely reflect market illiquidity during the depth of the panic in 2008.
Many banks failed to price the chances of illiquidity into the cost of internal funding for traders.
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Long before these modern conveniences were available, however, there were episodes of rampant speculation and ensuing illiquidity.
Long term institutional investors will start buying illiquidity such as the private loan market and even distressed debt.
Stockmarkets soared but the euphoria may not last: illiquidity is a symptom of Europe's crisis, not the cause.
And this is before any illiquidity discount is applied to the VC return.
One of the greatest strengths of traditional private venture capital is its illiquidity.
Initially, this illiquidity was attractive since it seemed to offer more alluring returns.
Illiquidity is when you have good assets but are short of cash.
By reassuring investors that a committed buyer is in the market, it hopes to reduce the illiquidity premium pushing yields up.
With marking to market, a wobble can quickly become a collapse, illiquidity makes prices harder to set and valuations are more susceptible to sentiment.
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However, the illiquidity of markets in mid-March was so severe that creditors lost confidence that they could recoup their loans by selling the collateral.
This is justified, once again, by the illiquidity of these markets.
Investing in international markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation.
That all securitised bonds must be sold to end investors and not congregate on the balance sheets of banks, sitting atop a pile of illiquidity and leverage?
The greater risk theory supposes that the value premium is due to unobserved risk within those securities, such as hidden financial distress or illiquidity in the marketplace.
On the one hand these bonds are troublesome, as buyers are difficult to find on account of limited juice being left in the bonds and their subsequent illiquidity.
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Because banks are leveraged (and also by definition on the verge of illiquidity at any moment in time) this meant that we were concentrating risk in the banks.
The Fed saw their problem essentially as illiquidity, not insolvency.
Instability may ensue just because of illiquidity, rather than insolvency.
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The country's problems were adjudged to be ones of illiquidity.
Investors make a mistake when they spread their money across whole life insurance, annuities, hedge funds, private placements and other investments with high fees, lockup periods, illiquidity and no public pricing.
All these steps were aimed at reducing credit spreads on private loans and increasing the supply of private credit, currently constrained by fear of counterparty default, illiquidity and banks' depleted capital.
The illiquidity is particularly evident when the market panics.
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Some banks clearly also underestimated the risks of illiquidity.
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Over time, on average, 3% represents an illiquidity premium.
In practice, though, there is seldom a clear line between illiquidity and insolvency: if the price Italy must pay to borrow rises high enough for long enough, its debt will eventually spiral out of control.
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