=Bonds Are Screaming A Big Warning
new report : ask act@liquidity.com for details ?#bonds #US #FED #Yields pic.twitter.com/IUszgVbFCi— CrossBorder Capital (@crossbordercap) June 6, 2019
PBoC and Fed See-Saw but Little Change Elsewhere. Global Policy Liquidity Remains Tight#Fed liquidity contraction has virtually doubled, while the opposite is true for the #PBoC #liquidity #CentralBanks ask act@liquidity.com for reports? pic.twitter.com/Q5wCgw00BQ
— CrossBorder Capital (@crossbordercap) June 6, 2019
Credit Markets Flash a Liquidity Warning That Pimco Saw Coming
-
Bid-offer spread shows trading costs approaching December zone
-
Pimco says ‘challenging liquidity conditions’ here to stay
Pimco’s fund managers are concerned that liquidity in corporate bonds is drying up when investors need it the most. They’re right.
A key gauge of trading conditions in riskier bonds is close to reprising December levels, belying the relative calm in global credit markets, according to data on bid-offer spreads compiled by Bloomberg. It shows the cost to cash out of corporate bonds keeps getting bigger during sell-offs, when funds often face redemptions.
It all helps to explain why Pacific Investment Management Co. said this week that “challenging liquidity conditions’’ aren’t going away anytime soon, according to the latest outlook from the $1.76 trillion asset manager.