Big Chemical Encyclopedia

Chemical substances, components, reactions, process design ...

Articles Figures Tables About

Liquidity premium hypothesis

The liquidity premium hypothesis, which has been described in Hicks (1946), builds on the insight that borrowers prefer to borrow long and lenders to lend short. It states that current forward rates differ from future spot rates by a liquidity premium. This is expressed formally as (3-40). [Pg.65]

See other pages where Liquidity premium hypothesis is mentioned: [Pg.65]    [Pg.69]    [Pg.65]    [Pg.69]    [Pg.66]    [Pg.70]   
See also in sourсe #XX -- [ Pg.69 ]



SEARCH



Premium Hypothesis

© 2024 chempedia.info