Definitions for "Liquidity Premium"
The premium paid for liquid assets over the price of a similar asset which is illiquid.
The part of an interest rate or other return that is intended to cover the fact that the investment is illiquid.
The premium which the buyer is willing to pay for a more liquid asset.
(1) The portion of a security's yield that is attributable to investors' desire to hold liquidity.(2) The difference or spread paid for liquidity.
An additional price paid for an asset on the basis of its greater liquidity or tradeability or, alternatively, an additional return required by an investor to compensate for lack of liquidity.
An extra component of yield or return required to compensate the investor for the possibility that an adequate retail market may not develop for a security.
Keywords:  minus, forward, expected, future, short
Forward rate minus expected future short-term interest rate.