No Liquidity Means Greater Risks
I recently was talking to a client who makes his trade in a manner similar to my previous occupation as an institutional bond professional. His clients manage bond portfolios that are valued in the billions of dollars and are constantly buying and selling bonds. I asked him how business was and he replied, “it’s terrible as no one is providing any liquidity.” To the outside world that might seem unimportant, but it is not a good sign.