Liquidity premium can be calculated by comparing yields of similar liquid and illiquid bonds. Real risk-free rate equals Treasury bond yield minus current inflation rate. Investor Alert ...

liquidity, maturity, and default risk premiums. High-risk companies offer higher interest rates to compensate for possible default risks. Calculate default risk premium by subtracting combined ...

And there's a perfectly logical economic explanation: Since investors prefer greater liquidity all else equal, they demand a risk premium to hold less liquid assets. In other words, they must ...

investment vehicles that benefit from a lack of liquidity. Pension plans and insurance companies look to capitalize on the risk premiums associated with illiquid assets like real estate ...

Most people don’t think about it, but there is a liquidity premium on publicly traded securities just as there is a risk premium, yet most only think about it in the case of extremely illiquid ...

The PRA110, a new liquidity calculation and template, will come into effect from July 2019 to replace current FSA047 and FSA048 process. It will apply to all UK banks, building societies and PRA ...

We find a sizable and countercyclical TIPS liquidity premium, which helps our model to match TIPS prices. Accounting for liquidity risk also improves the model’s ability to forecast inflation and ...