Liquidity, the forgotten risk?

Market insights

Sunday 01 February 2015

Liquidity, the forgotten risk?

Despite its importance, liquidity risk has long been underestimated by investors. The price for this mistake can be large, as was demonstrated by the liquidity crisis during 2007 and 2008. In the current environment of abundant central bank funded liquidity, investors have perhaps overlooked or forgotten the impact that liquidity, or more importantly, a lack of liquidity, can have on a portfolio. As investors continue to seek higher yields it is timely to ask; have investors forgotten liquidity risk?

Download the full article

Share this

If you enjoyed reading this article, why not share it?

Simply copy and paste the text and include a link to the article. Please read the Expertise Articles Terms of Use before sharing.

Related articles


 

Find out how we can help


If you'd like to speak to a specialist about how we can help build your business, get in touch.

Any information on this page in relation to mortgages has been prepared by Macquarie Securitisation Limited (MSL) Australian Credit Licence (ACL) 237863 ACN 003 297 336.

Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502.

This information is provided for the use of licensed and accredited brokers and financial advisers only. In no circumstances is it to be used by a potential client for the purposes of making a decision about a financial product or class of products.

Except for Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (MBL), any Macquarie entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.