MustangMarch 26, 2016"Few comments: 1. Blackrock talking about a looming liquidity crisis makes them an outlier and may have put a stutter step in its' FI inflow. You don't hear many other buyside firms talking about the impending liquidity landmine. "Hey guys, we were just kidding about that liquidity stuff. Everyone in the water... it's just fine." 2. Regulators are almost handcuffed to say that liquidity is good. Otherwise if it wasn't ok, then it would be their fault. Decreased liquidi…"
JesterMarch 26, 2016"First of all, an article on recent statements on liquidity with no mention of Blackrock’s 180 degree turn on this topic?.....move on, nothing to see here. There is so much to say about this topic, but I am halfway through a bag of Cadbury Hard Shell Eggs, so I am going to deliver the Cliff’s Notes version for you dear readers. Liquidity is the most misunderstood topic in financial markets today. 95% of what comes out of people’s mouths is either flat out wrong or insa…"
WolfmanMarch 25, 2016"Here's the thing: Most investors care about trading in size and trading when markets are moving dramatically. In both these key areas, markets appear to be in much worse shape. Can fixed income be sliced and diced into small pieces like FX and Equities and operate as an order-driven market? If so, there is no liquidity problem. It can't and there is. The very nature of the market cries out for a liquidity provider role and as persistently low rates and increasingly re…"
GooseMarch 25, 2016"It's a closed market Friday, but the FNL is keeps on trucking. The emergence of huge new issue deals, and having TRACE as the only statistic for measurement has fed into the concept that the market liquidity is fine. Issue size and participant breadth lead to more interest in transaction. This leads to a lot of TRACE prints, which leads to dealers feeling comfortable knowing where the market is and the bond’s liquidity profile, which leads to tighter markets and for d…"
CelticBondJuly 23, 2016"Cougar, what I find interesting are the claims of all especially new Credit platforms regarding the 'liquidity' they have & posting increasing volumes. As you say just posting a price & some size does not that position a tradeable position. Having asked those I know at the main platforms their emplyees are doing a bang-up job in defending the bosses position in saying 'we are doing good & volumes are up!'. Wel maybe in IRS were the DOdds_Frank dictate says…"
Voodoo3March 22, 2016"‘Based on our own observations’ is the key to this paper. From there onwards there isn’t really much to add. It’s just an advert.…"
JesterMarch 20, 2016"The punchline from this entire interview is: “based on our own observations” Yes, from a certain “observation” there is absolutely nothing wrong with the corporate bond market provided that: A) You are always a net buyer of bonds B) There is a consistently active calendar of new issue deals C) You consistently receive the lion’s share of allocations on new deals If that’s your world, then why complain? Just keep chuckling all the way to the bank….. Oh, one last thing.…"
MustangMarch 20, 2016""We don't believe there is a liquidity crisis whatsoever": Of course not. Well at least not today anyways. Blackrock sees an outsized share of the inflows and is also able to soak up its inflows with an outsized portion of new issues. Sure, maybe they can't access all the liquidity they need in secondary markets, but based on today's large primary flows, their liquidity needs are largely served. I also wonder if Blackrock traders told Richie to quit playing up the liq…"
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Blackrock’s Richard Prager: The Liquidity Is Out There – Institutional Investor
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