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Liquid yield option note (LYON) |
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Liquid yield option note (LYON)Zero-coupon, callable, putable, convertible bond developed by Merrill Lynch & Co.Liquid yield option note (LYON) Similar MatchesLiquidity premiumLiquidity premiumForward rate minus expected future short-term interest rate. LiquidationLiquidationWhen a company's debts and other liabilities exceed its assets, it is technically insolvent. If the company's directors are unable to shore up its finance by, for example, raising new equity or debt finance, one of its creditors may appoint a receiver to the company. The receiver's job is to take over the running of the company, doing whatever he thinks best to help the appointing creditor get its money back. This may result in the company being sold as a going concern or, it may result in the company going into liquidation.When a company goes into liquidation, the receiver will sell its assets as best he can and distribute the cash proceeds in a strict order. Ordinary shareholders of the company come very low down the pecking order, behind trade creditors, but they may eventually recover some or all of their investment. The process of liquidation can last several years.For CGT purposes, a notification by the Stock Exchange that a company's shares have 'negligible value' means that shareholders of the company can establish losses and set them off against gains on other investments. Liquid assetsLiquid assetsA company's cash plus assets which can readily be converted into cash. Liquidity FundLiquidity FundA California company that buys real estate limited partnership interests at 25% to 35% lower than the current value of the real estate assets. Self liquidating loanSelf liquidating loanLoan to finance current assets. The sale of the current assets provides the cash to repay the loan. Further SuggestionsLiquidity diversificationLiquidity preference hypothesis Accounting liquidity Liquid asset Liquidated Damages Liquidation value Liquid market liquid market liquidity ratio Liquidity crisis liquidator liquidity compulsory liquidation Liquidity Liquidity trap Involuntary liquidation preference voluntary liquidation Liquidating dividend Liquid Illiquid |
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