Flight To Quality


Flight To Quality
The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This flight is usually caused by uncertainty in the financial or international markets. However, at other times, this move may be an instance of investors cutting back on the more volatile investments for the conservative ones (i.e. diversifying) without much consideration of the international markets.

For example, during a bear market investors will often move their money out of equities and into government securities and money market funds. Another example is investors moving investments from high-risk countries with political unrest and volatile economic conditions to less risky markets of other countries. One indication of a flight to quality is a dramatic fall of the yield on government securities, which is a result of the increased demand for them.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Flight-to-quality — A flight to quality is a stock market phenomenon occurring when investors sell what they perceive to be higher risk investments and purchase more safe investments instead, such as US Treasuries.ee also* Financial contagion * Financial crisis *… …   Wikipedia

  • Flight to Quality — Fuite vers la qualité Une fuite vers la qualité (les termes anglais Flight to quality et Flight to security sont souvent employés) est un phénomème d’importants mouvements de capitaux qui, lors d’un krach boursier, se déplacent de valeurs… …   Wikipédia en Français

  • Flight to quality — Fuite vers la qualité Une fuite vers la qualité (les termes anglais Flight to quality et Flight to security sont souvent employés) est un phénomème d’importants mouvements de capitaux qui, lors d’un krach boursier, se déplacent de valeurs… …   Wikipédia en Français

  • flight to quality — The situation in which many investors sell or reduce purchases of less creditworthy investments and simultaneously buy or increase purchases of the most creditworthy investments. Flights to quality often occur suddenly after a major unexpected… …   Financial and business terms

  • Flight to quality — The tendency of investors to move towards safer, government bonds during periods of high economic uncertainty. The New York Times Financial Glossary * * *    A movement by investors to purchase safer (more secure and higher quality) securities,… …   Financial and business terms

  • flight to quality — A movement of investors into safer assets in times of uncertainty. Government securities, blue chip stocks, short term government debt, gold, and US investments all typify the type of assets that are bought at such times …   Big dictionary of business and management

  • flight to quality —  Movement of capital to the safest investments …   American business jargon

  • flight to quality — /ˌflaɪt tə kwɒlɪti/ noun a tendency of investors to buy safe blue chip securities when the economic outlook is uncertain …   Dictionary of banking and finance

  • Flight Operations Quality Assurance — (FOQA, pronounced PHO kua), also known as Flight Data Management (FDM) or Flight Data Analysis, is a method of capturing and analyzing the data generated by an aircraft moving through the air from one point to another. Applying the information… …   Wikipedia

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