Features Understanding
What Bond Market Liquidity Means for Your Portfolio The ability to buy and sell with ease can be transitory and depends on both the market for the asset and the size of the transaction.
Not exact matches
This would help mitigate the risks associated with
what is widely perceived as a «
liquidity illusion».10 The transition to such a
market environment, however, could be accompanied by strained
market conditions, as suggested by recent episodes of elevated
bond market volatility.
This feature article draws on recent work by the Committee on the Global Financial System (CGFS) to investigate trends in
market - making and
what they mean for the financial system (CGFS (2014)-RRB-.2 We use a simple conceptual framework to assess how supply and demand for
liquidity have changed in fixed income
markets, particularly in
markets for sovereign and corporate
bonds.
For now, we are currently seeing the anticipated
liquidity reduction harvest of wind in
what are academically considered the riskiest of assets — emerging
market equities and
bonds, currencies, and commodities — as equities of developed countries such as the US, Japan and some European nations have continued to hold up.