Bonds and swaps struggled in virus volatility
Low liquidity and wider spreads amplified by remote working, traders claim
As collapsing oil and stock prices caught the world’s attention on March 9, rates markets were hit by a liquidity shortage that left traders groping for the right comparison.
The head of European rates at one US bank said conditions were “worse than in the financial crisis”. A senior rates trader at a European bank said trading was “as bad as when Greece was looking to drop out of the euro – maybe even worse”.
Worryingly for markets that are bracing for further bouts of volatility, traders
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