%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