Is there a problem with market liquidity?

PP looks at whether fears that market liquidity is falling are justified and if we should be worried.

Stephanie Baxter
clock • 5 min read

Liquidity is critical to a well-functioning financial system as it brings the ability to trade at low cost. However, there are fears it is falling. Stephanie Baxter looks at whether it is cause for concern.

At a glance Dispersing risk away from banks could be leading to lower market liquidity  Tightening of liquidity would have consequences for schemes  Trade-off between liquidity and...

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