I dealt in
more illiquid bonds than most managers would.
Not exact matches
We trade all fixed income assets, with a focus on
more illiquid situations, from high yield, distressed and investment grade
bonds and convertible
bonds to public and private corporate securities and leveraged loans.
Over time, this suggests rising bid - ask spreads relative to past levels for
more illiquid assets, such as corporate
bonds, to help market - makers cover their operating costs.
Unlike stocks, mutual funds, and
bonds, private equity funds usually invest in
more illiquid assets, i.e. companies.
The rules have come in the wake of changes in the mutual fund industry, as funds have now moved beyond the mere pooling of stocks and
bonds into riskier and
more complex categories such as alternative and
illiquid investments and leveraged funds.
While
illiquid bonds had slightly higher credit spreads and directionally higher average returns, portfolios that tilt toward (away from) less (
more) liquid
bonds exhibit considerably higher levels of volatility.