The Business Times
business-time-50

Cheap money turns into liquidity trap

Abundance of cash has made it harder for investors to sell their financial assets without triggering wild price swings

google-preferred-sourceAdd BT as a preferred source
Published Sun, May 17, 2015 · 09:50 PM

    London

    INVESTORS used to thinking that vast quantities of cheap central bank money make financial assets a one-way bet have had a rude awakening in recent weeks, as that same conventional wisdom created frailties in the functioning of markets.

    The latest correction may look little more than a blip in an eight-year rally. But it has exposed a painful truth about an essential issue - liquidity.

    Central banks

    TRENDING NOW

    The new vehicles will comprise a mix of fully electric and hybrid models, including the BYD Seal 6 DM-i.

    ComfortDelGro’s Zig to buy S$10 million worth of BYD cars for private-hire fleet

    StarHub’s H1 Ebitda – excluding Ensign, a cybersecurity joint venture with Temasek – fell 23.8% for the period ended Jun 30.

    Singapore telco price war squeezes earnings, strengthens case for StarHub-M1 deal, say analysts

    Sats posted a S$75.1 million net profit for Q1, up 6% from S$70.9 million in the same year-ago period.

    Sats slides 13.6% as investors dump shares on profit-margin squeeze

    Handled passively, satellite connectivity becomes a service that the telco distributes, while somebody else sets the economics.

    When every phone becomes a satellite phone, what happens to Asia’s telcos?

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More