In Which Ft Alphaville Goes All Oliver Twist On Us
That's Oliver, non Operation.
The perennial query for sellers.
From the film Oliver:
Who volition buy?
From FT Alphaville:
Most bonds don't trade
The perennial query for sellers.
From the film Oliver:
Who volition buy?
via Genius.com...KNIFEGRINDER
Who volition buy?
STRAWBERRY-SELLER
Who volition buy?
MILKMAID
Who volition buy?
ROSE-SELLER
Who volition buy?ALL
Who volition buy?
From FT Alphaville:
Most bonds don't trade
A fresh slice of Citi inquiry lands on bond marketplace liquidity, which evokes a reminder of those days inwards tardily 2015 when a lot of attention was focused on how slowly it was to purchase together with (more importantly) sell corporate debt.
Back therefore JNK together with HYG, the ii biggest high-yield bond telephone substitution traded funds, had fallen to their lowest since 2009 afterwards Third Avenue, a U.S. property manager, said it would near downwards its $788m “Focused Credit Fund” afterwards a moving ridge of losses together with investor redemptions....MUCH MORE
As most corporate debt doesn't merchandise really regularly, the lack of book could last a occupation should a lot of investors desire to take coin from usual funds. The funds would accept to sell bonds to heighten cash for redemptions, which could crash prices together with spark to a greater extent than withdrawals, a procedure like to the bank runs of the fiscal crisis.
The occupation failed to materialise, everything recovered together with the long smash carried on, however. But did liquidity improve?
Not therefore much, says Anindya Basu of Citi (with our emphasis):
nosotros detect that on average, entirely 18% of the entire corporate bond universe (by CUSIP) traded on whatever given day. For issues that traded five times or to a greater extent than on a given day, the per centum was inwards the unmarried digits at nigh 8% [see nautical chart below]. Furthermore, most of these CUSIPs merchandise inwards pocket-size size – to a greater extent than than 75% of the amount book traded during this catamenia tin last attributed to entirely 15% of the CUSIPs....
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