Castagna TSCLGC

[nicola.gire]

Hi,
can someone explain me how TSCLGC works? And why is not affected when a company buys a security? From the definition it seems to me that is very similar to TSAA but in Castagna (https://www.bionicturtle.com/course...otes-castagna-chapter-6-monitoring-liquidity/) examples they behave differently.
Thanks

 

[sauce2k]

I’m having trouble with the amount of acronyms in this reading..In the Hull, Malz, and Rose readings, the terminologies used are all similar and the wording is quite straight forward, things in this reading could just be explained with a more straight forward language imo...

 

[sauce2k]

Hi,
can someone explain me how TSCLGC works? And why is not affected when a company buys a security? From the definition it seems to me that is very similar to TSAA but in Castagna (https://www.bionicturtle.com/course...otes-castagna-chapter-6-monitoring-liquidity/) examples they behave differently.
Thanks

Hi

I think for the Castagna example it is a round way trip? so the asset is bought now and sold later? A buy/sellback transaction?
So when you buy it TSAA increases, TSECCF decreases by the amount
and TSLGC/TSCLGC is increased/decreased due to AS? (not sure about whether it’s increase or decrease, personally prefer TSCLGC increases as you buy the asset so you can sell it to generate liquidity, but in Kaplan the sell/buyback example says TSCLGC will increase at time of sale...then following the same logic when buying in a buy/sellback transaction it must be a decrease in TSCLGC? can someone explain this?)
later you sell the asset so TSAA decreases, and TSECCF increases, TSCLGC is then reversely affected?

but if you go only one way by just buying the security I would opt for TSAA increases, TSECCF decreases, and TSCLGC is definitely affected imo (because you have received the security so you can sell it later to generate liquidity [so TSCLGC increases when I think this way])...

Haven’t read David’s study notes yet, not sure about the original reading but the Kaplan version is...I’m just not getting the point of all these acronyms, why so many of them when you can just say ‘buying an asset will increase assets available and decrease cash available...’ this specific reading seems disjointed from the prior liquidity readings, though some of the contents in this reading are just renaming prior concepts, for example balance sheet shrinkage...