Flight to quality: Difference between revisions
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(Add definition - source - HSF Corporate debt report 2025, p7.) |
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Flight to quality describes the behaviour of investors in times of market stress, when they prefer very low-risk assets or asset classes. | Flight to quality describes the behaviour of investors in times of market stress, when they prefer very low-risk assets or asset classes. | ||
These assets or asset classes are sometimes known as 'safe havens'. | These assets or asset classes are sometimes known as 'safe havens'. | ||
2. ''Lending.'' | |||
Similar preferences and actions by lenders. | |||
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* [[Liquidity]] | * [[Liquidity]] | ||
* [[Risk asset]] | * [[Risk asset]] | ||
* [[Risk averse]] | |||
* [[Risk-free asset]] | * [[Risk-free asset]] | ||
* [[Risk-off]] | * [[Risk-off]] | ||
* [[Risk-off asset]] | * [[Risk-off asset]] | ||
* [[Risk-on]] | * [[Risk-on]] | ||
* [[Safe harbour]] | |||
* [[Safe haven]] | * [[Safe haven]] | ||
* [[Stress]] | * [[Stress]] | ||
Latest revision as of 10:30, 11 May 2025
1.
Flight to quality describes the behaviour of investors in times of market stress, when they prefer very low-risk assets or asset classes.
These assets or asset classes are sometimes known as 'safe havens'.
2. Lending.
Similar preferences and actions by lenders.
