Liquidity theory of the term structure

• A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market's expectations of future interest rates because they embody a liquidity premium.


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 Embedded terms in definition
Forward rate
Interest rate
Liquidity premium
 Related Terms
Accounting liquidity
Agency theory
Arbitrage pricing theory
Bubble theory
Capital structure
Cost of long term debt
Dividend irrelevance theory
Dividend relevance theory
Euro medium term note
Expectations theory of forward exchange rates
Financial structure
Intermediate term
Liquidity diversification
Liquidity preference hypothesis
Liquidity preference theory
Liquidity preferences
Liquidity premium
Liquidity ratios
Liquidity risk
Liquidity shocks
Local expectations theory
Long term
Long term assets
Long term care ltc insurance
Long term debt
Long term debt ratio
Long term debt to capitalization
Long term debt to equity ratio
Long term debt/capitalization
Long term financial plan
Long term financing
Long term liabilities
Long term strategic financial plans
Market segmentation theory or preferred habitat theory
Medium term notes
Modern portfolio theory
Normal backwardation theory
Odd lot theory
Optimal capital structure
Other long term liabilities
Pecking order view of capital structure
Perfect market view of capital structure
Personal tax view of capital structure
Pie model of capital structure
Portfolio theory
Preferred habitat theory
Pro forma capital structure analysis
Pure expectations theory
Random walk theory
Residual theory of dividends
Secured short term financing
Short term debt
Short term financial management
Short term financial plan
Short term investment services
Short term operating financial plans
Short term self liquidating loan
Short term solvency ratios
Short term tax exempts
Static theory of capital structure
Target capital structure
Term bond
Term fed funds
Term insurance
Term life insurance
Term loan
Term loan agreement
Term long term loan
Term premiums
Term repo
Term structure
Term structure of interest rates
Term structure of interest rates and volatility
Term to maturity
Term trust
Theory of cross hedging
Theory of hedging
Unsecured short term financing

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