Liquidity in fixed income

clock

Liquidity in fixed income is a topic that investors have increasingly focused on since the onset of the credit crisis, and rightly so.

The market is unlikely to see a return to pre-crisis levels of liquidity any time in the near future. The fixed income markets trade almost entirely “Over-the-Counter” (or “OTC”) via banks and brokers; both of which have come under pressure to raise capital levels and reduce risk. As trading activities are one of the most expensive uses of that valuable capital, and deemed to be a significant source of additional risk, it is no surprise that the amount of balance sheet and liquidity provided by banks and brokers has been substantially (and permanently) cut. In addition, the number...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Join us today to discuss why 2024 is an attractive entry point for fixed income

Join us today to discuss why 2024 is an attractive entry point for fixed income

Sarka Halas
clock 25 March 2024 • 1 min read
Partner Insight: Moving from cash to corporate bonds ahead of cutting-cycles

Partner Insight: Moving from cash to corporate bonds ahead of cutting-cycles

Fidelity International

Ben Deane, Investment Director, Fixed Income - Fidelity International
clock 19 March 2024 • 13 min read
JP Morgan AM to wind up Sterling Bond fund as assets dwindle

JP Morgan AM to wind up Sterling Bond fund as assets dwindle

Fund size of £29m

clock 18 March 2024 • 1 min read
Trustpilot