Fragile liquidity puts markets in the ‘danger zone’

Some measures of trading conditions are as poor as in 2008

Danger

After the near collapse of the UK gilts market at the end of September, investors and analysts are worrying again about thinly stretched liquidity in normally reliable assets.

The catalyst for the recent chaos was margin calls on the liability hedging programmes run by UK pension schemes. Investors and analysts fret, though, that poor liquidity in gilts may have contributed to the turbulence – and may prove a sign of things to come elsewhere.

By some metrics, liquidity is thinner today in key

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

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 individual account here: