The FCA has reported a decline in UK corporate bond market liquidity since mid-2014, despite previous research from the regulator's chief economist's department for the period 2008 to 2014 saying liquidity in the asset class had improved since the global financial crisis.
In an update on liquidity in the UK corporate bond market, the Financial Conduct Authority (FCA) said new evidence suggested market participants may have to work harder today to complete a trade than in previous years, while from a long-term perspective the reduction in liquidity from 2014 onwards appears "moderate". Editor's View: Why liquidity risk should still be top of investors' due diligence list The latest findings adopt a more cautious tone on liquidity following the regulator's previous research into corporate bonds for the period 2008 to 2014, released in an occasional paper...
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