Bond Market Liquidity

September 2014
Fixed income market liquidity, defined as the ability to transact in the market without affecting the asset’s price, has always been varied. This disparity in liquidity presents both opportunities and challenges for investors. Potential challenges stemming from bond liquidity have risen as evaporating market liquidity could cause prices to fall rapidly and sharply in the event of a market correction. This Rocaton Insights explores current liquidity conditions across fixed income markets and the potential implications for investors’ portfolios.


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