Bond liquidity holding up, though markets chaotic

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Bond liquidity holding up, though markets chaotic

Water liquidity river from PA 11Mar20 575x375
Fast flowing water passes through the weir at Ray Mill Island, Maidenhead, Berkshire, in the aftermath of Storm Ciara which lashed the country on Sunday. | Jonathan Brady/PA

Liquidity in corporate, financial and emerging market bonds has certainly been affected by the recent stress caused by the Covid-19 coronavirus pandemic. But there has not been a catastrophic collapse. Participants say markets are still functioning, and some means of trading have benefited.

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