Sentences with phrase «on bond market liquidity»

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

Not exact matches

Although last year was favorable for developing countries, investors remember the painful «taper tantrum» that ensued several years ago, when the Fed signaled it would begin pulling back on its massive bond purchases that kept rates low while injecting liquidity in markets.

BRVM aims to attract more institutional investors including pension funds to increase investment in its bond market and lessen its dependence on bank 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.

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.

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.

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).

Based on this data, it is safe to say that recent withdrawals from bond funds have had minimal impact on broader markets and liquidity.

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.

In sovereign debt and, to an even greater degree, corporate bond markets, liquidity hinges in large part on whether specialised dealers («market - makers») respond to temporary imbalances in supply and demand by stepping in as buyers (or sellers) against trades sought by other market participants.

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.

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.

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.

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 welOn 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 welon the other, low volatility and high demand for risky assets suggest that liquidity is alive and well.

Market makers are expected to provide on - demand liquidity for a fee — a role only bond dealers have and will continue to fill.

Bonds are subject to liquidity risk, which may have an adverse impact on a security's value and on the fund's ability to sell such securities when necessary to meet the fund's liquidity needs or in response to a specific market event.

For this reason, the ocean of «liquidity on the sidelines» in money market funds is not a pool of money waiting to be invested in stocks or bonds, but is instead a measure of how dependent U.S. borrowers are on short - term debt.

the disclosure of certain enumerated events affecting a municipal security; these events include the following, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves; (4) unscheduled draws on credit enhancements; (5) substitution of credit or liquidity providers; (6) adverse tax events affecting the tax - exempt status of the security; (7) modifications to rights of securities holders; (8) bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment; (11) rating changes; (12) failure to provide annual financial information as required; the MSRB, Electronic Municipal Market Access (a.k.a. EMMA) provides free access to municipal disclosures, market data and eduMarket Access (a.k.a. EMMA) provides free access to municipal disclosures, market data and edumarket data and education

Bond ETFs add incremental liquidity to the bond markets by allowing investors to trade shares on an exchaBond ETFs add incremental liquidity to the bond markets by allowing investors to trade shares on an exchabond markets by allowing investors to trade shares on an exchange.

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.

The muni market isn't known for its liquidity, so if you have a large number of bonds being dumped on the secondary market, the whole market cheapens up.

If the replacement bond is going to be a Treasury, choose the off - the - run rather than the on - the - run so that you're not paying for liquidity premium, which is additional richness priced into the on - the - runs due to the demand by the repo markets.

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 transaMarket 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 transamarket for the asset and the size of the transaction.

Instead, they are very long term investors who have developed their own unique set of rules, and Dimensional Indexes, that are focused on the factor research of Fama, French and other academics, as well as internal trading rules - based strategies that minimize market impact costs and capture liquidity premiums for being a patient buyer and seller of stocks or bonds that meet their rules of construction.

However, bonds offer much greater liquidity as compared to fixed deposit accounts because certain types of bonds can be traded on the secondary market.