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    Secured finance: Achieving liquidity from illiquid assets

    Secured finance: Achieving liquidity from illiquid assets

    28 February 2024 Fixed income

    Achieving the cashflows required by investors, as well as the certainty of those cashflows, does not mean avoiding illiquid assets. Investors may be able to employ secured finance to naturally generate cashflows for when they are required.

    Secured finance has some key attractive characteristics that any investor can make work to their advantage. Too often secured finance is dismissed as a viable investment, being regarded as illiquid, but illiquidity has different shades.

    Many investors’ impression of secured finance is rooted in a past that is distinctly different to the present.

    Expert application of secured finance assets have the potential to deliver investment objectives of most clients, so it may play a valuable role in any broad investment portfolio.

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