Suddenly, everybody is talking about liquidity in the bond market — or the lack of.
The theme of declining liquidity has been the main subject of industry panels, hedge-fund memos to their clients and extensive research projects by big banks.
Even the New York Fed — one of the world’s biggest government bond traders since it executes transactions on behalf of the Federal Reserve— has chimed in. On Monday, it released the first of a series of research articles on liquidity in the government-bond market.
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