Do Buy-Side Institutions Supply Liquidity in Bond Markets? – (Anand/Jotikasthira/Venkataraman)
July 20, 2018 \ 0 Comments
We examine the role of buy-side institutions as liquidity suppliers in bond markets. Focusing on mutual funds, we classify a fund’s trading style as liquidity supplying (demanding) if the fund helps absorb (strain) dealers’ inventory.