Corporate bond market liquidity - little or lots?

Kames Capital's fixed income portfolio manager Stephen Snowden explains the reasons behind the current liquidity crisis in the corporate bond market.

The debate about the current state of liquidity in the corporate bond market is heating up. Let's explore some of the arguments. Is there record new issuance? New issuance in the USD corporate bond market is very strong. However, that is rather a simplistic way to look at new issuance from the prospective of a domestic corporate bond fund manager. New issuance is healthy, that is a fact. But thankfully bonds do mature and give you your money back most of the time. Therefore we have to look at net supply, that is new bonds issued less those that mature. So while the USD corporate b...