Illiquid Assets

Liquidity remained a major concern after the credit crunch. Number of investors found themselves sitting on very illiquid securities, often highly losing values, which they were simply unable to sell off. 

As the result they often needed to use proxy hedging, which then, as everyone resulted to use of the same instruments, had a massive value swings, often not linked the actual quality of the underlying (CDS markets on EM sovereigns for instance).

Liquidity hence has became an asset class of its own, and indeed at Vision Finance in our quest to provide groundbreaking solutions, we have made it a totally independent asset class.

Liquidity: an asset class of its own

Various investors have various approach to liquidity of the assets.  Some, hold to maturity investors, hedgers of the other securities, often do not require their instruments to be liquid, and could easily appreciate a higher rate of return for pari passu security which is illiquid

Other investors, especially hedge funds with potential significant asset redemptions, are particularly keen to have liquidity, and are willing to take a cut in their returns in order to have the ability to have liquidity.

Vision Finance Products

1)  liquidity asset swaps:  swaps of pari passu in terms of seniority instruments offering different yields

2)  specially structured investments, guaranteeing liquidity by our partners

If you have assets on your book that are illiquid, but you are keen to have them in the liquid format, please contact us.  Our brokerage services might be able to match you with the end client, who has the opposite problem.  Currently this applies especially to Sovereign and Bank debt issued by Emerging Market issuers, though we can also have a look at different investment products.