Barrie & Hibbert Publishes Liquidity Premium Research Report
Last updated 19th October 2009 - Barrie & Hibbert have released a new research report discussing the price of liquidity, as part of the ongoing debate about Solvency II guidance.
The price of liquidity – the liquidity premium – and its variability is currently the subject of enormous interest from accountants, actuaries, financial intermediaries and regulators. The outcome of the debate will have an impact on the future price of certain financial products and, arguably, the cost of finance for firms using the capital markets. There is a large body of theoretical and empirical evidence to support the view that liquidity premia are real and measurable. The primary purpose of this report is to provide a summary of the main conclusions of researchers, with the objective of refining liquidity premium estimation methods.
To read the research report, click the download link below:
Liquidity Premium – Literature review of theoretical and empirical evidence
For more information about Solvency II, visit our dedicated Preparing for Solvency II page.