Volcker rule didn't dry corporate bond liquidity, research says

When banks closed prop desks, market liquidity improved, academics claim


Research from academics asserts that post-crisis US regulatory intervention – in particular the Volcker rule – has not resulted in structural deteriorations in market liquidity for fixed income asset classes.

The paper from the US National Bureau of Economic Research, titled Regulation and Market Liquidity, is by Francesco Trebbi and Kairong Xiao, both of the University of British Columbia. It devotes special attention to the corporate bond market and concludes there is no evidence of

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: