Bond Liquidity Isn’t Dead, It’s Just Moving Away From Big Banks
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Amid all the craziness and volatility in U.S. bonds last month, a few telling data points emerged that reflect where the market is heading. As some measures of trading surged to records, those carried out by Wall Street’s biggest banks lagged behind.
Daily trading of corporate bonds averaged $21.8 billion in October, the most ever, according to the Securities Industry & Financial Markets Association. Meanwhile, at the 22 primary dealers that are counterparties with the Federal Reserve, it was about average for the year.