illiquid

American  

[ih-lik-wid] / ɪˈlɪk wɪd /

adjective

1. not readily convertible into cash; not liquid.

---

illiquid British  

/ ɪˈlɪkwɪd /

adjective

1. (of an asset) not easily convertible into cash

2. (of an enterprise, organization, etc) deficient in liquid assets

---

Other Word Forms

• illiquidity noun
• illiquidly adverb

Etymology

Origin of illiquid

First recorded in 1685–95; il- ² + liquid

Example Sentences

Traditional banking suffers from a basic flaw: It finances long-term, illiquid loans with short-term deposits that can be withdrawn on demand.

From The Wall Street Journal

Over time, those constraints have pushed the industry toward a narrower role: holding safer, more-liquid assets and avoiding long-duration illiquid lending.

From The Wall Street Journal

Banks are increasingly in the “moving” business—originating, structuring and distributing loans—while private credit funds are in the “storage” business, underwriting and managing illiquid assets through full cycles.

From The Wall Street Journal

Rather than holding illiquid business loans directly, banks now lend senior capital to private credit funds, exposures that are typically diversified, secured and supported by substantial equity cushions.

From The Wall Street Journal

A system with banks in a senior financing position protected by loss-absorbing private investors is more stable than one in which banks fund illiquid credit directly with deposits.

From The Wall Street Journal