Speculative motive

Speculative motive
Definition: The desire to hold idle balances to take advantage of changes in the price of bonds.
Related glossary term: ...

Speculative motive
A desire to hold cash for the purpose of being in a position to exploit any attractive
investment opportunity requiring a cash expenditure that might arise.
Speculator ...

Speculative motive
A desire to hold cash in order to be poised to exploit any attractive investment opportunity requiring a cash expenditure that might arise.
Speculative-grade bond ...

a transactional motivation, or the desire to keep money available for spending as needed; (2) a precautionary motivation, characterized by the reluctance to keep money tied up in assets not readily convertible to cash; and (3) the speculative motive, ...

Speculative motive [r]: The wish to hold money in order to take advantage of possible investment opportunities. [e]
Spread [r]: (i)The difference in yield between two bonds. (ii)The difference between the bid and ask prices for a particular security.

One of three motives for holding money identified by KEYNES, along with the transactional motive (having the cash to pay for planned purchases) and the speculative motive (you think ASSET prices are going to fall, so you sell your assets for cash).

Bond rated Ba or lower by Moody's, or BB or lower by S&P, or an unrated bond.
Speculative motive ...

See also: Bills, Banks, Liquid asset, Liquid assets, Speculative demand