Sentences with phrase «of bond market liquidity»

The issue of bond market liquidity has been a consistent theme over the past years or so with financial executives such as JP Morgan CEO Jamie Dimon, Blackstone CEO Steve Schwarzman, and Oaktree Capital's Howard Marks weighing in on the issue and generally pointing the finger at a lack of liquidity exasperating moves in financial markets.

Not exact matches

«Finally, the increased role of bond and loan mutual funds, in conjunction with other factors, may have increased the risk that liquidity pressures could emerge in related markets if investor appetite for such assets wanes.»

In the Minutes from the January FOMC meeting, the Federal Reserve addressed the financial situation, and noted that the increasing role of bond and loan mutual funds could pose a liquidity risk if everyone tries to get out of the market at the same time.

Some in the market have attributed the sharp market swings seen during the downturns in October and December as indicating structural problems with liquidity in the market — and some fingers have been pointed at the proliferation of bond funds.

When we talk about bond market liquidity it's important to understand that there are lots of different «pools» out there such as high yield bonds, munis, government bonds, etc..

The bond buy - backs are a component of the Fed's quantitative easing program, whose goal is to inject liquidity into markets and keep interest rates low.

Although it is fair to say that the recent uptick in volatility has in part reduced earlier concerns about prolonged low volatility and associated reach - for - yield behavior, it has placed added focus on the resilience of liquidity, particularly in markets, such as the market for corporate bonds, that may be prone to gapping between liquidity demand and supply in stressed conditions.

The low liquidity levels are caused by a combination of regulations, which make it less attractive for big banks to hold inventories of bonds for dealing, and new forms of quick, computerised trading, which have the potential to move markets in times of stress.

4) Beware of ETF's where liquidity of ETF is out of synch with Underlying market liquidity... emerging market, junk bonds, pretty much every ETF except us stocks, gov. Bonds and GLD has fake liqubonds, pretty much every ETF except us stocks, gov. Bonds and GLD has fake liquBonds and GLD has fake liquidity

Liquidity risk The vast majority of municipal bonds are not traded on a regular basis; therefore, the market for a specific municipal bond may not be particularly liquid.

The long - term implication is that investors and the public at large can have more trust in the security and liquidity of the U.S. Treasury bond market.

This report investigates how the markets for repurchase agreements and securities - lending agreements support the liquidity of Canadian bond markets.

This provides a simple way to understand a lot of the worries about bond market liquidity as it relates to banks and corporate bonds.

Regulators can implement policies to monitor mini flash crashes proactively and, among other preemptive actions, limit mass liquidity flights from one market to the U.S. Treasury bond market during instances of heightened instability.

so now the issue is whether the bond market (or macro hedge funds) eased too much thinking the Fed would choke off liquidity and now is staring at still a weaker dollar and high commodity prices indicating an elevated level of excess liquidity.

Only with bonds it's even harder to create a diversified portfolio using individual bonds on your own unless you (a) have a large amount of capital (typically bonds are sold in lots of $ 10,000 or $ 100,000) and (b) know how to trade bonds on the open market (transaction costs can be larger for bonds than stocks because of the spreads and lack of liquidity).

Bond act as both a volatility - minimizer for those investors that can't stomach a large stock allocation and a source of stability during stock market sell - offs for either spending purposes or liquidity for those that need to rebalance into lower stock prices.

The era of cheap or zero - interest money that led to a wall of liquidity chasing high yields and assets — equities, bonds, currencies, and commodities — in emerging markets is drawing to a close.

«Liquidity,» in fact, is THE watchword now in bond trading — ironic, considering that the U.S. central bank's primary intention has been to boost the flow of cash through financial markets, drive a push toward riskier assets like stocks and corporate credit, and thus generate a wealth effect that would spread through the economy.

That means keeping enough liquidity in cash equivalents and high quality bonds to survive periods of below average performance and bear markets.

For portfolio investors in emerging - market currencies, bonds and securities — the scale of which dwarfs FDI and private - equity inputs — the quality of a country's financial institutions and the depth and liquidity of its markets are most important.

The average investment - grade (high - yield) bond trades on less than 32 % (36 %) of days over the prior six months — liquidity in corporate bonds was considerably lower than in traditional listed equity markets.

But, starting from these lower levels of market liquidity, corporate bonds seem to have witnessed a decline in liquidity in many jurisdictions - at least according to this particular metric.

Meanwhile, bond markets are concentrating as key participants, such as asset managers, shrink in number but expand in size.8 As a result, market liquidity may increasingly come to depend on the portfolio allocation decisions of only a few large institutions.

I've gotten a huge number of emails and questions on bond market liquidity in the last few months.

One feature of bond markets that limits their liquidity is that individual issuers may have a large number of different securities outstanding.

The new - issue bond market is expanding (Shin (2013)-RRB- and assets under the management of investment funds that promise daily liquidity are growing rapidly - as suggested by the increasing presence of exchange - traded funds in corporate bond markets in recent years (see also Box 2).

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.

The relative lack of liquidity in the bond market and the fact that it is oriented for institutional investors rather than retail investors means that you really want to know where a bond has been trading before agreeing to buy or sell at a given price (be careful not to get ripped off).

Here, we take a look at the more recent June «Bond Market Group» minutes; the main concern was that, despite a functioning JGB market, there has been a notable increase in bid - ask spreads and general decrease in liquidity since the start of aggressive «QQE» last OcMarket Group» minutes; the main concern was that, despite a functioning JGB market, there has been a notable increase in bid - ask spreads and general decrease in liquidity since the start of aggressive «QQE» last Ocmarket, there has been a notable increase in bid - ask spreads and general decrease in liquidity since the start of aggressive «QQE» last October.

In addition to near zero interest rates, central banks created excessive amounts of money by issuing trillions of dollars of bonds, e.g. QE1, QE2, QE3, QE4, etc. pushing unprecedented amounts of newly created money into global markets to contain the growing deflationary threat; and, while it failed to contain deflation, the excessive liquidity is now circulating in markets with no place to go, akin to moribund monetary edema.

While base rates kept at or close to zero for almost seven years and three massive asset - buying programs by the Fed have undoubtedly helped stabilize the US (and world) economy during and after the recession that followed the global financial crisis, the continuation of expansionary monetary policies is now supporting a growing excess of global liquidity that has been distorting the market signals sent by stock and bond prices and thus contributing to the growing volatility seen in recent weeks.

If there is a problem in the bond market, and it has to suspend trading for any amount of time, stocks will probably be sold to create liquidity.

While mortgage lenders have tightened their wallets since 2008, corporations have been borrowing with abandon, abetted by trillions of dollars in central bank liquidity and investors searching for yield they can no longer find in government bonds or money markets.

We all know that the massive reduction in dealer inventories and the cost of capital has had a huge negative impact on liquidity in the corporate bond market.

High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.

* Canada vs USA * D. Rosenberg in Barron's (Feb 27» 17) * Financial Markets History (CFA) * Global liquidity + China * Staying rational the day after Trump election * Consequences of the U.S. elections * China's Transition: Fast and Slow * The Fall in Interest Rates * Cool Streets of North America * Emerging bonds * About Millenials * Looking for safe income?

On the one hand, declining bond market activity and the persistence of low - risk arbitrage opportunities imply liquidity is impaired, while, on the other, low volatility and high demand for risky assets suggest that liquidity is alive and well.

But as the Fed printed ever more money to buy bonds, they created increasing amounts of liquidity that ultimately spilled over into global financial markets beyond US equities and real estate.

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.

Given the growing scarcity of available collateral among bond dealers, a collapse in repo liquidity, and increasing frequency of delivery failures, all of which is shorthand for a bond market that is becoming less liquid — it seems that QE has begun to create, rather than relieve, meaningful constraints.

It then followed it up by a series of quantitative easing measures, where it purchased bonds in the market to improve the liquidity conditions.

Banking rules introduced in the wake of the last recession have worked to constrain liquidity in global bond markets.

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It's always been the Federal Reserve's preferred way of injecting liquidity into the bond market.

Meanwhile, Bear Sterns, the second - biggest underwriter of mortgage bonds, lost more than $ 1.3 billion in market value yesterday as investors worried about the firm's liquidity.

The liquidity and volume of markets including the E-mini S&P 500, U.S. 30 - year bonds and many others are attracting increasing numbers of day traders.

Liquidity: Due to the large number of U.S. municipal bond issuers and the sheer number of municipal bonds outstanding the depth of liquidity for U.S. municipal bonds has been a factor impacting the market forLiquidity: Due to the large number of U.S. municipal bond issuers and the sheer number of municipal bonds outstanding the depth of liquidity for U.S. municipal bonds has been a factor impacting the market forliquidity for U.S. municipal bonds has been a factor impacting the market for decades.

One of the reasons why it is not a big issue is that the public bond market is designed to be low liquidity.

In our opinion, the so - called «spread sectors,» from high - yield bonds to non-agency mortgages and emerging - market debt (EMD), currently offer attractive levels of credit, prepayment, and liquidity risks, particularly for investors who know how to analyze these risks.