Liquidity Is Bad Even by August Standards, JPMorgan Shows
- Stocks, Treasuries, currencies see lower-than-average depth
- JPMorgan has cited ‘feedback loop’ between vol and liquidity
This article is for subscribers only.
A familiar bogeyman is lurking alongside the gut-wrenching swings across assets of all stripes: illiquidity. It’s problematic even by the dire standards of August, according to JPMorgan Chase & Co.
Measures of market depth in U.S. equities, Treasuries and currencies relative to the rest of the year have fallen below the average since 2010, the bank’s research shows. It’s a sign that market players have diminished capacity to absorb the trade-driven mania sweeping assets.