Ten questions to ask bond managers about falling liquidity

Warnings issued by central banks

As investors panic about worsening liquidity in fixed income markets, Wellian Investment Solutions shares 10 questions they should be asking their fund managers.

Falling liquidity in bond markets has been an ongoing cause for concern for central banks, managers and investors. Various factors have contributed to a liquidity squeeze in fixed income in recent months, including the potential for a cycle of rate hikes in the UK and US and tighter banking regulations. In the US, the situation in the high yield market was so bad Third Avenue Management was forced to suspend redemptions from its Focused Credit fund after seeing severe losses and withdrawals. Richard Philbin (pictured), chief investment officer at Wellian Investment Solutions, said:...