Sentences with phrase «difficult bond market liquidity»
The SEC's new Fixed Income Market Structure Advisory Committee aims to tackle difficult bond market liquidity challenges, with its first official meeting coming up this week.
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Liquidity risk High yield bonds that may have been easy to buy or sell when market conditions were calm can suddenly become very difficult to sell when volatility increases.
In addition, high - yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell them.
Large index ETFs, which have real - time net asset values (NAVs), have not helped this pricing problem in fixed income but, in parts of the fixed income market where there is less liquidity (such as high yield bonds), sourcing issues can be more difficult — particularly in a market sell - off where buyers may not be readily available with sufficient capacity to take on bond inventory.
In addition, high yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell the bonds.