(MoneyWatch) It's relatively well known that less-liquid investments tend to outperform more liquid investments. And there's a perfectly logical economic explanation: Since investors prefer greater ...
Ibbotson professes to be surprised that a clear-cut liquidity anomaly exists. After all, hedge funds hire mathematicians to plumb data to uncover arbitrage opportunities, which in theory should ...
Most people don’t think about it, but there is a liquidity premium on publicly traded securities just as there is a risk premium, yet most only think about it in the case of extremely illiquid assets ...
On February 18, Blue Owl Capital (NYSE: OWL) halted redemptions in Blue Owl Capital Corp II, a retail-oriented private credit vehicle that had offered quarterly liquidity. It was, arguably, the first ...
Any prolonged period of higher interest rates means that banks must monitor declining deposits carefully, as depositors seek higher-yielding alternatives elsewhere. Rate increases in the eurozone have ...
The prices of special securities known as TIPS can give some insight into how investors view the outlook for future inflation. New research uses a novel term structure model of nominal and real yields ...
(MoneyWatch) While liquidity is usually discussed regarding bonds, a recent paper shows that it may have a significant impact on stocks as well. Liquidity is the degree to which an asset or security ...
Investment banking revenues have been sustained by high volumes of fixed income market trading in recent quarters, even as bond prices fell. But the quality of those markets has varied alarmingly. At ...
The growing number of investors gravitating to alternative investments and private markets recognise that one reason they may obtain higher returns is they have accepted reduced liquidity. But, ...