Re:Major crypto trading firm Alameda Research might be insol...
by JumpCrisscross on Friday November 04, 2022 @11:46AM
(#33468605)
> can always sell assets (at a haircut of course) to evade cash flow insolvency (arguably that's closer to illiquidity really)
For financial institutions, particularly those with short-term liabilities, illiquidity is insolvency. The initial liquidity depresses prices which marks down the balance sheet.
For financial institutions, particularly those with short-term liabilities, illiquidity is insolvency. The initial liquidity depresses prices which marks down the balance sheet.