Fixed-income investors hunt for liquidity

According Reuters, fixed-income investors are feeling the pressure of new capital requirements designed for banks. As a result, they are turning to dealers for liquidity.

Dealers are focusing more of their activities on their largest clients as they shrink their balance sheets and as trading margins for fixed-income instruments come under pressure, Greenwich said. Smaller funds, as a result, are struggling more to complete affordable trades.

"Stricter bank capital requirements have drained liquidity from the U.S. fixed-income market," Greenwich said in the report, saying that 85 percent of its respondents cited reduced market liquidity as among the most important issues faced this year.

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please