Tuesday, March 11, 2008

Liquidity Risk

k. explain liquidity risk and why it might be important to investors even if they
expect to hold a security to the maturity date;

Liquidity risk is concerned with an investor having to sell a bond below its indicated value, the indication having come from a recent transaction.

http://www.investopedia.com/study-guide/cfa-exam/level-1/fixed-income/cfa13.asp

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