%0 Journal Article
%A Robert A. Jaeger
%T Market Liquidity: Don’t Know What You’ve Got ‘Til
It’s Gone
%D 2011
%J Trading
%P 14-18
%V 2011
%N 1
%X The author discusses the lessons the global financial crisis taught about the precious but fragile liquidity of capital markets. Debunking myths about long-term investors’ liquidity needs and the role of hedge funds and high-frequency traders in supplying liquidity, the author argues that the most important source of liquidity is unleveraged contrarian investors who are willing to take the other side of a trade. He warns that the growing homogenization and concentration of market participants may be endangering the investor diversity and robust market infrastructure needed to preserve reliable sources of liquidity.
%U https://guides.pm-research.com/content/iijtrading/2011/1/14.full.pdf