'Get used to it': central banks advise on liquidity risk

Central bankers fear buy side has not yet woken up to bond imbalance

Guy Debelle, assistant governor for financial markets at the Reserve Bank of Australia (RBA), has some advice for asset managers on the altered nature of post-crisis liquidity: "If you bought into an asset class thinking you can turn around and sell it whenever you want, then you are mistaken."

This is part of a growing chorus of warnings from central banks and regulators – an attempt to focus asset managers on the liquidity risks implied by growing bond portfolios and shrinking dealer