illiquid
Adjective
Meaning
illiquid (comparative more illiquid, superlative most illiquid)
(finance) Lacking liquidity; unable to be converted into cash.
Investment in illiquid assets may prove to be a mistake if the market turns down.
Antonyms
Examples
And while private equity investments may be relatively illiquid, portfolios can include additional asset classes to generate risk-adjusted returns and high-cash yields.
The new rules set a one-time rate of 15.5 percent on cash and 8 percent on non-cash or illiquid assets.
Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
Since these investments are illiquid, and private equity vehicles generally require a large financial commitment, it’s important to take the time to understand the investment partnership, including the fund and the terms of the obligation, noted Karpen.
“The FlexShares Credit Scoring Model addresses the corporate bond liquidity challenge by optimizing a carefully selected subset of all credit issuers of which illiquid, orphaned and small lot names have been removed,” according to FlexShares.
They have also voiced fears that big outflows from ETFs could leave managers stuck with illiquid bonds they cannot offload.