RT Journal Article
SR Electronic
T1 Exiting a Burning Building: Structural Drivers
of Liquidity Shocks in Stock and Bond Markets
JF Trading
FD Institutional Investor Journals
SP 45
OP 49
VO 2011
IS 1
A1 David Cameron
A1 Lynn Challenger
A1 Charles J. Jacklin
A1 Robert A. Jaeger
A1 David Leduc
YR 2011
UL http://guides.pm-research.com/content/2011/1/45.abstract
AB Leading investment professionals from BNY Mellon Asset Management discuss structural differences in equity and fixed income markets that affected the ability to transact during the 2008 crisis. They focus on the key role that transparency, information credibility, counterparty knowledge, and trade size can play in preventing a temporary liquidity squeeze from freezing up entire markets. Understanding the structural drivers of liquidity shocks in different markets and the self-reinforcing process that escalates those shocks may help managers develop better safeguards for managing liquidity.