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Wall Street Warns Market Liquidity Is Getting as Bad as 2020

  • Dealers who should keep trading orderly turn more risk averse
  • Amundi stress tests portfolio for liquidity in Covid aftermath

Suspicious minds on Wall Street can be forgiven for seeing all the hallmarks of an illiquid bear-market trap in the Tuesday stock rebound. 

In recent months trading conditions in equities and bonds have gotten worse as money managers struggle to buy and sell in size without moving prices, with echoes of the 2020 pandemic disruption.