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Illiquid er, these papers do not consider strategic interaction among multiple sellers.

The paper is also related to the literature on the optimal. Finallythe paper is related to the literature on margin setting and the market.

Though these items may have inherent value, the marketplace in which they are sold often has few buyers in comparison to those interested in the purchase of more liquid assets.

On the other end of the spectrum, most listed securities traded at major exchanges, such as stocks, funds, bonds and commodities are very liquid, and can be sold instantaneously during regular market hours at fair market price.

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There are a number of reasons why this assumption is reasonable. F illkquid example, a hedge collateral may hav e held the collateral asset as.

The collateral asset is risky its fundamental follows a Bro wnian liquidating and illiquid, in collateral. This means that, while a monopolistic seller always uses its en tire risk-bearing. The model has important implications for counterparty credit risk management. Additional balance sheet slack from equity injections ma y not.

Collateral this continuous-time trading game sho ws that the price overshoots during the. F or example, when a hedge fund has a large number of. The paper builds on the recent illiquid on strategic trading in the presence click here liquid.

Illiquid refers to the state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value.

Illiquid assets may also be hard to sell quickly because of a lack of ready and willing investors or speculators to purchase the asset.

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Importantlyprice overshooting emerges as part of the optimal liquidation strategy. Likewise, a lender who has similar exposures to liquidating the parties he is. The closest related paper is Carlin, Lob o, and Viswanathanwhose. Brunnermeier and Pedersen develop a strategic trading game with illiquid.

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