Fragile liquidity puts markets in the ‘danger zone’

Rob Mannix
@RobMannix
13 Oct 2022

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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

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