Not exact matches
Ten years ago, if you look at emerging
market bonds, corporates, that was a
very small and
illiquid market.
Specifically, a sudden expansion of financial liquidity in the world's leading banking centers — whether an increase in British gold reserves in the 1820s or the massive transformation in the 1980s of
illiquid mortgage loans into
very liquid mortgage securities, or some other structural change in the financial
markets — has been the catalyst behind every period of globalization.
Because the over-the-counter bond
market can be
very illiquid.
The first is that the
market for municipal bonds is
very illiquid.
The big advantage with MM is that they will provide a
market even when the underlying is
very illiquid and only might have a few trades each day.
If using a
market order - yes you will buy or sell, but in an
illiquid stock with a large spread you will get a
very bad price for it, likely more than 10 % away from the last traded price.
-- Shares could be
very illiquid, with far less information flow — you may see little trading, and brokers will have little incentive to support a
market in shares.