liquidity
51Liquidity Adjustment Facility — A tool used in monetary policy that allows banks to borrow money through repurchase agreements. This arrangement allows banks to respond to liquidity pressures and is used by governments to assure basic stability in the financial markets.… …
52Liquidity Gap — The difference between a firm s assets and a firm s liabilities, caused by said assets and liabilities not sharing the same properties. This gap can be positive or negative, depending on if the firm has more assets than liabilities or vice versa …
53Liquidity Premium — A premium that investors will demand when any given security can not be easily converted into cash, and converted at the fair market value. When the liquidity premium is high, then the asset is said to be illiquid, which will cause prices to fall …
54liquidity premium — (1) The portion of a security s yield that is attributable to investors desire to hold liquidity. (2) The difference or spread paid for liquidity. American Banker Glossary forward rate minus expected future short term interest rate. Bloomberg… …
55liquidity transfer — Refers to individual liquidity transfers, initiated by a settlement bank, from the central bank system/TARGET2 to the Euroclear platform and vice versa. Optional liquidity transfers can be done in real time during the day and within a given time… …
56liquidity provider — A market participant that is obliged to buy and sell less liquid securities that it is registered in. In the process, it facilitates trading and improves liquidity in those securities. London Stock Exchange Glossary Financial institution that… …
57Liquidity risk — The risk of non availability of sufficient liquidity to meet cash flow requirements on a certain date in the future including today (having sufficient available or inflow of funds to accommodate outflow of funds). Also known as funding risk.… …
58liquidity transfer — Refers to individual liquidity transfers, initiated by a settlement bank, from the central bank system/TARGET2 to the Euroclear platform and vice versa. Optional liquidity transfers can be done in real time during the day and within a given time… …
59Liquidity forecast — A liquidity forecast is an estimate of a company s cash flows (payables and receivables) at some future time …
60Liquidity Preference Theory — The idea that investors demand a premium for securities with longer maturities, which entail greater risk, because they would prefer to hold cash, which entails less risk. The more liquid an investment, the easier it is to sell quickly for its… …
