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Liquidity drought may be easing in Europe's corporate bond market

Recovery in dealer quote depth suggests central banks' bond-purchases have helped to boost liquidity

Liquidity drought may be easing in Europe's corporate bond market
Photo: iStockPhoto

Bond-buying programmes by the European Central Bank and Bank of England have boosted liquidity in the region's corporate bond markets, according to data provider IHS Markit, to the extent of hitting a new daily record.

Liquidity, or ease of trade, in bond markets took a hit in the aftermath of the UK's vote to leave the European Union in June. But the following months have seen a steady recovery, IHS Markit said in a report on December 30.

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