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

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

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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

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