Invesco Perpetual's Causer: No need to panic about bond liquidity

Follows FCA evidence of 'moderate' decline in liquidity

Paul Causer, co-head of fixed interest at Invesco Perpetual, has said he is no more concerned about liquidity in the bond markets than before, after the Financial Conduct Authority noted a "moderate" decline since mid-2014, as he called the asset class a "self-correcting market".

The manager (pictured) of the £30bn bond fund range said it was right for the FCA to continually assess liquidity and he is glad the regulator has "come round to what we were saying all along". Its previous research into UK corporate bonds for the period 2008 to 2014, released in an occasional paper in March last year, dismissed concerns of a decline in liquidity as "anecdotal", and said liquidity had in fact improved over the period, contrary to the concerns of many market participants. However, research released earlier this month said new evidence suggested market participants may ...