Op zoek naar een baan?
Actueel en relevant

Issues note on liquidity in the corporate bond and commercial paper markets

Bron: - 18 mei 2020

The coronavirus (COVID-19) pandemic and the measures necessary to contain it have brought a severe and unprecedented shock to Europe’s economies. Against this background, the General Board of the European Systemic Risk Board (ESRB) decided at its meeting on 2 April 2020 to focus its attention on five priority areas where coordination among authorities or across the EU is likely to be particularly important in order to safeguard financial stability. 1 One of those five priority areas concerns issues around market liquidity and illiquidity, with a particular focus on the implications for asset managers and insurers. Another priority area is concerned with the procyclical impact that downgrades of corporate bonds have on markets and entities across the financial system.

Corporate bond market liquidity tensions
The onset of the COVID-19 pandemic saw a significant deterioration in corporate bond market liquidity, particularly in the high-yield (HY) segment. The impairment of market liquidity has been most visible in the sharp widening of bid-ask spreads, which were higher than they were at the peak of the Global Financial Crisis for the HY segment during March and April. Since the end of April, bid-ask spreads have only slightly decreased. For the BBB segment, the bid-ask spreads are somewhat lower than during the peak of the Global Financial Crisis (see Charts 1 and A.1). 25% of corporate bonds have been traded at distressed levels (i.e., where the option-adjusted spread is greater than 1,000 basis points) and 80% at spreads above 500 basis points (see Charts A.2 and A.3).

Lees verder >>

Wil je dit nieuwsbericht verder delen?


Transistorstraat 7
1322 CJ Almere

Postbus 60184
1320 AE Almere

Tel: 036 - 7440 136

KvK 32090652
ING Bank NL91INGB065.42.67.456
BTW NL.8106.57.041.B01

Wie we zijn

Careerguide heeft 25 vacaturebanken voor specialisten!
Onze vacaturebanken (geen bemiddeling) bieden professionals relevante vacatures binnen hun expertise

Ook een vacature plaatsen? Neem contact met ons op:

Nienke Smit   Pieter Lammers
Nienke Smit
  Pieter Lammers