You cannot in fact have any liquid market for hedging without there being speculation.
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The current woes are about sovereign debt which does, at least normally, have a liquid market.
In a thriving liquid market, an army of hedgers and speculators would converge on a fair price.
It will become harder still with the creation of a single, liquid market in euro-denominated corporate bonds.
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This desire to preserve capital in the most liquid market around had a double whammy effect on commodities.
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He favours a more businesslike approach, involving a more liquid market for investors to buy and sell ideas.
This absence of proper indices is the main reason why China still lacks a liquid market in derivatives.
Bargain online commissions, combined with new rules on how prices are quoted, create a much more liquid market.
In a liquid market, corporate bond ETF market prices are held close to their NAVs by an arbitrage mechanism.
The first wave was from 1998 to 2001, when such companies as Junglee, C2B, Liquid Market, Cadabra and MySimon sold out.
Such a large and liquid market is less vulnerable to speculative attack than a small one, such as Greece's or Portugal's.
The single currency has created a liquid market in European corporate bonds.
But other countries accept that risk, he says, because it is usually outweighed by the lower cost of borrowing in a more liquid market.
After all, even questionable IPOs were moneymakers in Hong Kong's heady pre-1997 days and an active liquid market is harder to manipulate than an illiquid one.
The stock held by the co-leads allows such mis-estimations of demand in specific sectors to be balanced while there is still a liquid market immediately after issuance.
As issuers hope not only tap into a more-liquid market, but also issuer-friendly documentation and covenant packages as well as save on interest costs in some cases.
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They are the deepest and most liquid market, which means when liquidity dries up everywhere else the relative liquidity of the US bond market becomes more pronounced.
There cannot be a liquid market in a partnership's shares because, if there were, the Internal Revenue Service could say the business should be taxed as a corporation. 5.
But even if a liquid market in such securities could be created, it would still rely on banks with experienced loan officers to assess the credit risk of small firms.
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Importantly, these bets provide a liquid market for credit risk, which lowers the cost of hedging for those with primary exposure, and provides the market with better information about whether Greece or General Electric is a good credit risk.
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On valuation, people always seem to be overly enamored with market value, which has puzzled me because as a private company, there is no liquid market on which to buy and sell shares, so a valuation is established without any degree of market efficiency.
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The U.S. government debt market is the largest and most liquid money market and government bond market in the world.
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The bigger and more liquid a market, the lower the error will be, typically.
But even that may change as a deeper and more liquid secondary market develops.
If the investment community is likewise thick then we could get a reasonably liquid secondary market in investment property.
However, that is not to minimize its importance since banks require a liquid money market to roll over their liabilities daily.
These are long term (year and out) holds for investors looking for highly liquid emerging market stocks listed on the NYSE.
As for fixed income, investors prefer highly liquid Treasurys over other liquid markets, including Asia, which has a deep and liquid bond market.
It's the most open and liquid power market in the United States, offering both residential and commercial users a broad choice of power suppliers.
Kennedy announced an investigation and Congress held hearings as the case grew wider to include federal agriculture programs and an alleged attempt to corner the liquid fertilizer market in West Texas.
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