Look Out for Volcker in Illiquid Market Already Feeling Squeezed
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The difficulties that traders are having maneuvering in the $10 trillion U.S. corporate-bond market may be poised to get worse.
It’s been a struggle for investors to be nimble in credit markets given Wall Street’s pullback since the financial crisis. Trading has failed to keep pace with record corporate borrowing, with daily turnover falling to an average 0.2 percent of corporate debt outstanding from 0.3 percent five years ago, according to data compiled by the Securities Industry and Financial Markets Association.