Lyxor Notes Illiquid Bond Market, Forecasts Winners In Forthcoming Market Environment
Market volatility has reached historic levels in the bond market, a recent research report from Lyxor observes, as the driver of the rapid price moves is a lack of market liquidity. While many investors fear the upcoming rising rate environment and dread volatility, there are potential future winners amid unfriendly stock market environments. Lack of liquidity in bond market, brokers and dealers not wanting to hold paper, source of volatility In a week in which both the U.S. Treasury bond and German bund yields spiked, breaking into new 2015 highs, brokers and dealers hold a shrinking percentage of exposure to...