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Liquidity: Navigating a route through the desert

Post-crisis regulations have hit banks’ ability to warehouse bonds on their balance sheets, exacerbating price swings

Liquidity: Navigating a route through the desert

October 15, 2014 will live long in the memory of anyone involved in the fixed income market.

It was the day that the world's largest and most liquid fixed income market - the US treasuries segment that makes up around a third of the US bond market - experienced some of its wildest moves in 50 years. Perhaps more importantly, it marked the moment that concerns over the lack of liquidity ailing the fixed income markets hit the mainstream.

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