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Wall Street Sends Fresh Alarms on Bond Liquidity as QE Era Ends

  • Bank of America wants action from Fed and Treasury Department
  • Bloomberg’s liquidity index deteriorates in pandemic-era echo
Updated on

Like his Wall Street peers, Mark Cabana has had it with terrible trading conditions in the world’s largest bond market -- conditions that could worsen now that the Federal Reserve has just wrapped up its biggest asset-buying program in history.

In a Wednesday note titled “UST liquidity: sounding the alarm,” the head of U.S. interest-rates strategy at Bank of America Corp. stepped up his calls on policy makers to embark on a root-and-branch reform of the underlying marketplace for the world’s safest assets.