Absent investment banks fuel ongoing bond market liquidity fears
By Samuel Agini
June 21, 2019, Financial News
Corporate bonds could suffer sharp price falls in stressed markets because of the reduced capacity of investment banks to provide liquidity, a decade on from post-crisis regulations that restricted Wall Street’s ability to take on risk.
The International Organization of Securities Commissions, a global body of securities regulators, said in a June 21 report that rules put in place since the 2008 financial crisis may have “curtailed” banks’ willingness to provide liquidity to investment managers looking to sell bond holdings.
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