Skip to content
Subscriber Only

Bondholders Adapt to New World Year After Liquidity Meltdown

  • Investors break down size of trades, seek new counterparties
  • Preparing for next `earthquake' as market depth drops
Updated on

A year after an innocuous trading session warped into one of the most extreme days in the history of the U.S. Treasury market, investors are using the lessons gleaned from that episode to protect their money.

Some are turning to new technology to make sure they find buyers or sellers faster; others are transacting in smaller amounts or using derivatives to protect against price swings; a few are also adopting different ways to measure risk.