Having more resilient banks with
sufficient capital and
liquidity reduces the probability of widespread
liquidity crises.9 That would
help make market - making more robust, though probably at lower levels of activity in normal times.
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.