With the US Federal Reserve (Fed) starting on a series of fed fund rate hikes from Dec. 16, 2015, US money and credit markets will be on the path toward normalization after seven years of abnormally low rates.
Nov. 12, 2015
| Tony Wong, Mark Gilley & Justo Gonzalez
Liquidity in fixed income markets has become a major focus of concern inside and outside of the investing community. Investors, asset managers, bank regulators and policymakers are worried that changes in the bond markets, post-financial crisis, have led to greatly reduced levels of bond market liquidity — meaning it may now be more difficult to transact smoothly in bond markets without price disruptions.
The disruptions to financial markets and the declines in a wide range of commodity markets over the past two months spell the end of the idea that emerging market (EM) economies could lead the global economy out of the sub-par growth that has prevailed since the crisis of 2008-09.