en     ru     jp
 
 
private banking
private banking
private banking
private banking
private banking
private banking
private banking
     
 
Home
      
Knowledge Base
      
Equity Derivatives and Structured Products Glossary
      
Liquidity risk
       
 
Back

Liquidity risk

 Search definitions     
  Search  

Liquidity risk
The Risk associated with transactions made in illiquid markets. Such markets are characterised by wide Bid/Offer spreads, lack of transparency and large movements in price after a deal of any size. A firm wishing to unwind a Portfolio of illiquid instruments (for example, highly tailored structured Notes) may find it has to sell them at prices far below their fair values, exacerbating the problems that prompted the decision to unwind.
Posted by  Privatebanking.com
 
  Back  
  Print  
  Email  

 

private banking
private banking
private banking
private banking
private banking
private banking
private banking

 
Home News Library Newsletters Event Calendar Advertise About Contact FAQ
Privacy Policy     Terms of Service
 

©