Tag Archives: Bonds

Illusory liquidity and other risks from misguided central bank policy

Does liquidity matter? Not, it seems, to regulators and central banks. Little thought is being given to the global systemic risk created by today‚Äôs liquidity illusion. In a world awash with money, trading is actually drying up, with little depth in many markets. Entering positions is easy, but the exit doors could prove surprisingly narrow. […]

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QE’s unintended consequences: Pension deficits to hit balance sheets

QE is having some serious unintended consequences, increasing pension scheme deficits and hitting company finances. Driven by liquidity and deflation fears, UK government stock, gilts, beat shares and most other asset classes in 2014. Long dated gilts gained over 20%. The trend has even accelerated already this year. Yet many UK pension funds, endowments and […]

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