Illiquidity

The thermostatic expansion valve can also be used to maintain a liquid level. The phial and a heater element are both clamped to a bulb at the required liquid level. Illiquid is not present, the heater warms the phial to a superheat condition and the valve opens to admit more liquid. 

Vol. 553 B. Monch, Strategic Trading in Illiquid Markets. XIII, 116 pages. 2005. 

If you meet those criteria, you also need to consider whether such investments are suitable for your particular needs and circumstances. Such funds may be riskier than investing in other vehicles and are typically illiquid, so you should not expect to realize returns for at least 10 years. Gaining entry into such a fund also may prove challenging. Because of these difficulties, we think that investing in an ETF or sector mutual fund may still represent the most attractive way in which to invest in alternatives. 

The expectations of market players and eventual outcomes in relation to micro level allocation plans for the second phase will have considerable impact on the functioning of the market for CO2 allowances and therefore the success or failure of the scheme. The updating of allocation plans required by the Directive takes away an underlying assumption of most economic assessments of emission trading schemes, i.e. that distribution does not affect efficiency unless transaction costs are high. Updated allocation plans have the effect of altering the abatement and production choices made by participants. Where participants believe that the base years in future allocation plans will be updated there is an incentive to increase emissions. The uncertainty as to whether or not this will happen in the second NAPs is likely to result in increased volatility and illiquidity (wider bid-offer spreads)... 

His unowned assets thus enter his constraint system rather than his objective function. Though for him they are completely illiquid, they may nevertheless be combined as inputs with other assets that the individual does own so as to produce a current period cash flow. Plausible examples range from the mundane such as toll bridges which reduce the costs of transporting goods, to the exotic such as a monument which inspires belief in and discourages deviant behavior from the cultural and economic norms which a society professes. The unowned assets enhance the individual s ability to... 

Is Zero Group Complete Although the periodic table seems to justify the conclusion that nil the nohle gases have been discovered, yet it seems possible that certain strange lines, particularly one at r>.r>7, in the s]icetrum of the aurora may be due to au unknown atmospheric gas. Attempts to separate such a constituent by diffusion through heated quart/, and by fractionation of illiquid air residue failed to reveal the presence of any now gas. ... 

In response to recent MV studies, there has been a strong inflow of capital into hedge funds. Even some normally risk-averse institutions such as pension funds are now making substantial allocations to hedge funds. Swensen (2000) maintains that a significant allocation to hedge funds as well as other illiquid assets is one of the reasons for substantial outperformance by leading university endowment funds over the last decade. 

Because LBO and VC funds are illiquid, they are not typically included in MV portfolio optimizations. The reason is primarily time consistency of asset characteristics. That is, the risk associated with LBOs and VC funds is multiyear in nature. It cannot be equated directly with the risk of stocks. 

This issue is especially pertinent if illiquid assets such as private equity are to be included in the portfolio. Using annual volatility for private equity makes no sense—10-year risk must be considered. 

Illiquid methane contacts the skin, flush the affected area with water. If extensive burns result, contact a physician. 

Liquidity demand The CDS for a cash bond may reflect a liquidity premium for that name. Therefore for illiquidity issue the protectimi requires a premium, increasing the CDS basis over the ASW spread. Note, the CDS price will be influenced also from the liquidity embedded in the synthetic instrument, which may be more or less liquid. 

According to Merrill Lynch (ML) indices, that is, without illiquid bonds (outstanding below 1 billion) or bonds shorter than a 1-year maturity. 

Inflation-linked bonds are a little less liquid than nominal bonds, but the possibility that this results in them trading cheaply—suffering an illiquidity discount —is contentious. We would propose that turnover is lower in linkers because they meet investor needs so well. They are natural buy-and-hold assets because they are worry-free core holdings. Thus, illiquidity, relative to nominals, is something investors in linkers understand and accept. It is not so much a penalty, more the price of success. 

Indices with higher threshold levels typically contain fewer illiquid instruments and are thus easy to replicate for obvious reasons, and very often easy to beat as well. The reason for the latter is explained by the... 

Liquidity premium The effect of liquidity premium is more pronounced in indices that have lower thresholds and by extension contain a larger number of illiquid bonds. As discussed earlier, as illiquid bonds have higher yields, and render a natural advantage to the index, as investors are unable to buy them at prices they are quoted in the index. 

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